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China has detained two Japanese citizens on suspicion of smuggling banned items, with reports linking the case to rare earths, a strategic sector tightly controlled by Beijing. The detentions occurred on May 18 and May 25 in the port city of Dalian, Japan's Chief Cabinet Secretary Minoru Kihara confirmed Source: AP.
Chinese Foreign Ministry spokesperson Guo Jiakun confirmed the detentions but provided no details, stressing that "the Japanese side should educate and remind Japanese citizens and enterprises in China to abide by Chinese laws" Source: DW. Kyodo News reported that the two men are employees of Fuji Electric Co., a Japanese machinery maker, and one works at its Chinese subsidiary. Their alleged attempt to export rare earth-related products may have violated Chinese export controls Source: JapanToday.
The detentions occur amid deteriorating ties between Tokyo and Beijing, exacerbated by Japanese Prime Minister Sanae Takaichi's remarks in late 2025 suggesting Japan could intervene militarily if China attacked Taiwan Source: Infobae. China has since restricted exports of dual-use goods, including rare earths, to Japan. Rare earths are critical for high-tech and defense products, and China dominates global production and processing Source: SCMP.
On the same day, China's Ministry of Commerce announced rewards for reporting violations of rare earth export controls, effective July 1. The measures target unlicensed exports, circumvention, and illegal technology transfers Source: SCMP. This move signals Beijing's intent to tighten enforcement of strategic mineral exports.
“Japanese consular offices in Shenyang and Dalian were notified by the Chinese customs authorities that the two Japanese nationals were detained, one on May 18 and another one a week later, 'in the same alleged case.'”
“'We would like to stress that Japan should educate and remind its citizens and businesses in China to abide by Chinese laws and regulations,' Foreign Ministry spokesperson Guo Jiakun said.”
“Kyodo News agency reported that the two Japanese nationals are employees of a Fuji Electric Co, major Japanese machinery maker, and one of them works at its Chinese subsidiary.”
“'Any organisation or individual has the right to report conduct suspected of violating relevant laws and regulations in the export of dual-use strategic mineral items,' the Ministry of Commerce said.”
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