2 Japanese held in China over alleged rare earths smuggling

China has detained two Japanese nationals over alleged attempts to take rare earth-related products out of the country.
Japanese Chief Cabinet Secretary Minoru Kihara said on Wednesday that one of the two was detained by Chinese authorities on May 18 and the other a week later, accused of violating Chinese laws governing the import and export of restricted goods. Tokyo confirmed the detentions, without giving further details, citing privacy.
One of the detainees is an employee of a Japanese electric machinery maker’s China subsidiary. The individual was reportedly taken into custody in the northeastern city of Dalian last month.
Kihara said the government would communicate with the individuals and parties involved and “respond appropriately from the standpoint of protecting nationals overseas”.
Chinese foreign ministry spokesman Guo Jiakun confirmed the detention, saying two Japanese nationals had been detained by Chinese authorities in accordance with Chinese law and China had notified the Japanese side of the relevant case details.
“We would like to emphasise that the Japanese side should educate and remind Japanese citizens and companies in China to abide by Chinese laws and regulations,” he said.
According to Kyodo, Chinese customs officials viewed the case as concerning, although the detainee was not suspected of espionage.

The detentions come as Beijing tightens export controls on rare earths and other strategic materials. China dominates the global supply of rare earth elements, which are critical for products ranging from electric vehicles and consumer electronics to military equipment.
The case is expected to raise concerns among Japanese companies about regulatory and geopolitical risks in China at a fragile time for bilateral ties.
Relations between Beijing and Tokyo have deteriorated since Japanese Prime Minister Sanae Takaichi suggested in November that an attack on Taiwan could trigger Japanese military intervention.
Beijing sees Taiwan as part of China and has never renounced the use of force to reunite it with the mainland. Most countries – including Japan – do not recognise Taiwan as an independent state.
Takaichi’s refusal to retract the remarks has prompted a series of Chinese restrictions on Japanese trade and exchanges. In January, China strengthened controls on Japan-bound shipments of dual-use items – products, including rare earths, that can be used for both civilian and military purposes.
Chinese customs data released on Saturday showed that exports of rare earth permanent magnets to Japan rose 380 per cent year on year in May, although shipments fell nearly 35 per cent from April.
The detentions of the Japanese nationals were reported two days after four senior members from the Japanese Association for the Promotion of International Trade visited Beijing and met Chinese vice-foreign minister Hua Chunying. During the meeting, Hua expressed hope that the business community could play a constructive role in improving ties between the two countries.
The meeting marks the first official visit to China by a Japanese economic organisation since relations deteriorated late last year.
The Tokyo-based business group has sent delegations to China for meetings each year with senior officials. This year’s visit was scaled back to four representatives from an originally planned group of about 50 following the death of the association’s chairman, former House of Representatives speaker Yohei Kono, a veteran politician widely regarded as supportive of closer ties with China.