Japan and China squared off over the wage rates paid by Japanese companies in China at a recent economic forum, AP reported. Premier Wen Jiabao told the Japanese delegation to the meeting that Japanese companies should pay higher salaries to their Chinese workers. Earlier, Japanese Foreign Minister Katsuya Okada called for "transparent policies" governing workers in China, suggesting that Beijing gave its tacit approval to a series of strikes against Japanese companies. Wen countered that it was time for Japanese firms to increase wages after a two-year freeze, but Japan said it was "not satisfied with this explanation." Bloomberg reported that Japan was also dissatisfied with China’s decision to massively reduce exports of rare earth, used by Japanese firms to make products including batteries for electric cars. Beijing has capped exports of the metals at 72% of their previous levels in addition to applying export taxes of up to 25%. Minister of Commerce Chen Deming told Japan the measures were necessary to "protect the environment."
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