The world consists of both the strong and the weak. Just as a powerful entity like the U.S. President has a specific way of fighting, a weaker party—such as Iran—has its own distinct battle strategy. The approach differs depending on whether one is strong or weak; the strategy for the weak involves choosing a battlefield where they can leverage their own unique strengths. Iran’s tactic of utilizing the Strait of Hormuz is a prime example of a strategy born of necessity for a weaker power. When it comes to survival, one needs the wisdom to utilize the environment in a space that there is little competition. Consider the koala, an adorable animal native to Australia. Koalas secured their food supply by monopolizing eucalyptus. Because eucalyptus contains potassium cyanide, other animals avoid it as a food source; however, koalas possess a physiology resistant to this toxin, allowing them to transform vast eucalyptus forests into a reliable food resource.
Sojitz was formed in 2004 through the management integration of Nissho Iwai and Nichimen. Nissho Iwai had begun importing aircraft in 1956 after signing an agency agreement with Boeing; furthermore, in the 1960s, it started dealing in rare earth elements—a sector that is currently a hot topic. Nichimen, meanwhile, grew by securing contracts for industrial plants in the Middle East and Southeast Asia. Although Sojitz ranks among the seven major general trading companies, it trails behind its peers in terms of net profit. The company pursues a strategy known as “annual ring management”—growing steadily and incrementally over time. Thanks to this approach, it has managed to achieve consistent, albeit modest, increases in both revenue and profit. At the time of the merger, the company withdrew from unprofitable businesses and carried out restructuring. Over the subsequent decade, it focused on improving its financial health rather than blindly expanding its business scope. Its history is defined by identifying interesting opportunities that major competitors overlook, making small initial investments, and then nurturing those ventures into significant businesses; the rare earth sector is one such example. Lacking the massive capital of its rivals, Sojitz has built up its earnings by securing key positions within supply chains rather than relying on sheer financial might. Sojitz appears to have adopted a strategy focused on expanding its avenues for success—creating multiple winning paths rather than just one or two. Instead of trying to catch up with other trading companies, the firm seems to have embraced a “go our own way” philosophy.
Sojitz has a track record in the rare earth business dating back to the 1960s, during the era of its predecessor, Nissho Iwai. Beyond the rare earth operations it has managed for half a century, the company has also honed its expertise in niche sectors such as battery materials. The trading house has been deeply involved in rare earth supply chains, primarily through dealings with China. Relations with China, however, are subject to fluctuation; while friendly ties can yield win-win outcomes, the situation can shift rapidly based on the intentions of the Communist Party. China, which holds a near-monopoly on heavy rare earth production, began moving toward stricter export controls. Anticipating this trend, Sojitz partnered with the Japan Organization for Metals and Energy Security (JOGMEC) to invest in Lynas, an Australian company engaged in rare earth development. Through an additional investment in 2023, Sojitz secured rights to heavy rare earths, leading to its first import of the material in October 2025. Sojitz thus became the first Japanese company to import substances such as dysprosium from sources outside of China.
