A Japanese employee of a major electrical equipment company was detained by Chinese authorities in Dalian, Liaoning Province, in May after allegedly attempting to export rare earth products, according to Japanese media reports on June 24. Chinese customs detained the employee under rare earth export control regulations, not under the Anti-Espionage Law, multiple sources told Kyodo News. The detention occurs amid escalating Japan-China tensions over Beijing's rare earth export restrictions, which intensified after U.S.-China confrontations in 2025 and Japanese Prime Minister Sanae Takaichi's November 2025 statement linking Taiwan contingencies to Japan's collective self-defense rights.
Chinese Customs Detains Japanese Employee in Dalian Over Rare Earth Export Attempt
Asahi Shimbun first reported the detention on June 24. Kyodo News, citing multiple sources, reported that Chinese customs questioned the employee's actions based on rare earth export control regulations. The specific charges remain unclear, but sources confirmed the case does not involve violations of China's Anti-Espionage Law.
Kyodo News noted that the incident will likely amplify concerns among Japanese business circles about operational risks in China as bilateral relations deteriorate.
China Implements Export Controls on Japan Following Takaichi's Taiwan Remarks
Global rare earth supply disruptions emerged after the U.S.-China confrontation intensified in April 2025 and China strengthened rare earth export controls. In November 2025, Prime Minister Takaichi stated during parliamentary questioning that a Taiwan contingency could trigger Japan's "survival-threatening situation" allowing exercise of collective self-defense rights. China's government expressed opposition and subsequently imposed multiple countermeasures against Japan.
In January, China's Ministry of Commerce strengthened export controls on dual-use items to Japan, then further tightened restrictions in February. China's Foreign Ministry stated the measures aim to "prevent Japan's remilitarization and nuclear ambitions."
Dual-use items refer to goods, technologies, and services with both civilian and military applications, including critical minerals like rare earths. According to Chinese official figures, rare earth magnet exports to Japan show a declining trend. Japanese business representatives acknowledged that actual impacts have begun to materialize.
Takaichi Criticizes China's Rare Earth Controls at G7 Summit
At the Group of Seven (G7) summit held in France last week, Prime Minister Takaichi criticized China's export controls on rare earths and other products. She stated, "We are deeply concerned about the situation where China's measures targeting Japan may affect supply chains." Takaichi proposed supporting nations in establishing reserve systems and creating a joint reserve mechanism.
FAQ
What happened to the Japanese employee in Dalian?
A Japanese employee of a major electrical equipment company was detained by Chinese customs in Dalian in May after allegedly attempting to export rare earth products. The detention was based on rare earth export control regulations, not the Anti-Espionage Law.
Why did China strengthen rare earth export controls on Japan?
China implemented export controls on dual-use items to Japan in January and February following Prime Minister Takaichi's November 2025 statement that a Taiwan contingency could trigger Japan's collective self-defense rights. China's Foreign Ministry stated the measures aim to prevent Japan's remilitarization.
What did Prime Minister Takaichi say about China's rare earth controls at the G7 summit?
At the G7 summit in France last week, Takaichi stated she is deeply concerned about China's measures targeting Japan potentially affecting supply chains. She proposed supporting reserve systems and creating a joint reserve mechanism among member nations.
