Rare earths are strategic materials on which the world remains heavily dependent on China, and as Beijing increasingly uses export controls as a diplomatic and economic lever, Japan’s latest challenge is drawing historic attention as a potential turning point. With 2026 being described as the “first year of domestically sourced rare earths,” the question is whether Japan can truly become a game changer in reducing its reliance on China. (News On Japan)

A private lodging operator based in Tokyo’s Shinjuku Ward and its chief executive have been referred to prosecutors on suspicion of violating Japan’s Private Lodging Business Act, marking the first such criminal referral nationwide under the law, according to the Metropolitan Police Department. (News On Japan)

The dollar-yen rate swung sharply over just a few days, with the yen strengthening rapidly from the 159 range to the 153 range, fueling market speculation that Japanese and U.S. authorities may have carried out “rate checks” to signal readiness for intervention. (News On Japan)

Japan’s department store sales fell for the first time in five years in 2025, as spending by foreign visitors shifted toward lower-priced goods and pushed down average purchase amounts. (News On Japan)

Japan’s wages have risen by more than 5% for two consecutive years in 2024 and 2025, and this year’s annual spring wage negotiations are set to begin in late January, raising fresh questions over whether pay growth can finally catch up with inflation and what steps are needed to restore household purchasing power. (News On Japan)