(MENAFN- Live Mint) Japan's Finance Minister Katsunobu Kato emphasised the need for a unified response from the Group of Seven countries amid concerns over China's recent export controls on rare earths.

As per a report by Bloomberg, Kato, while speaking to reporters in Washington on Wednesday, expressed that“Japan is deeply concerned about these measures,” in reference to China's latest trade actions. He added,“I called for G-7 nations to unite and respond.”

Kato made his remarks after a G-7 gathering that took place alongside the annual meetings of the International Monetary Fund and the World Bank. During the discussions, finance chiefs from leading developed nations addressed a possible coordinated reaction to China's new rare earth export restrictions and the ongoing tensions between Beijing and Washington.

What do China's new rules say?

China's newly announced regulations last week mandate that foreign companies secure approval from the Chinese government before exporting items that contain even minimal amounts of certain rare earth elements sourced from China. China holds a dominant position as the producer of over 90% of the world's processed rare earths and magnets, including key materials used in everything from fighter jets to electric vehicles.

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Meanwhile, on Thursday, Chinese state media issued a seven-point response to US demands that Beijing roll back its rare earth export controls, as both countries continue to exchange accusations and blame each other for escalating tensions, according to Reuters.

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US Trade Representative Jamieson Greer on Wednesday described China's new rare earth restrictions as“a global supply-chain power grab" and indicated that Beijing could avoid President Donald Trump's threat to reinstate triple-digit tariffs on Chinese imports by abandoning the measures set to begin on November 8.

Beijing insists it informed Washington in advance of the new licensing rules and argues that the restrictions align with policies already in place in other major economies.

Since a phone call in September between Trump and Chinese President Xi Jinping, the US and China have been locked in a heated exchange, each accusing the other of heightening tensions in the lead-up to a planned meeting between the two leaders.

(With inputs from agencies)

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