TOKYO - A Japanese employee of a major heavy electric machinery manufacturer's China unit has been detained in the country since last month, possibly over attempts to take products related to rare earths overseas, for which Beijing has tightened export controls, sources familiar with the matter said Wednesday.
The details of how the worker may have acted illegally remain unknown. The recent detention could further fuel concerns among Japanese companies seeking to conduct business in China while bilateral tensions run high over a diplomatic row over Taiwan.
In January, China strengthened controls of Japan-bound shipments of dual-use items that can be used for both civilian and military purposes, including rare earths.
The sources said Chinese customs authorities appear to have regarded the Japanese employee's behavior as problematic, but they do not suspect the worker was engaged in espionage activities.
The worker was detained in May in the northeastern port city of Dalian, the sources said.
China dominates the global supply of rare earths, which are essential for manufacturing high-tech products ranging from electric vehicles to weapons.
The Chinese Commerce Ministry has said only a small number of Japanese entities are targeted by the export curbs, and "normal economic and trade exchanges" between the two Asian countries will not be affected. The ministry also explained that the steps aim to curb Japan's "remilitarization" and nuclear ambitions.
However, the Japanese Chamber of Commerce and Industry in China said earlier this month the measures have even affected some items "purely for civilian purposes."
Exports of rare-earth magnets to Japan have dropped, indicating the effects of tighter controls.
In July last year, a Chinese court sentenced a Japanese man working for Astellas Pharma Inc. to three years and six months in prison over his engagement in spying activities.
The former executive at the pharmaceutical company's China unit was detained in March 2023, just ahead of his scheduled return to Japan. He had served as a senior official of the Japanese Chamber of Commerce and Industry in China.
The ongoing diplomatic feud between the two Asian neighbors stems from Japanese Prime Minister Sanae Takaichi's parliamentary comments that suggested an attack by mainland China on Taiwan, a self-ruled democratic island Beijing claims, could prompt a response by the Japan Self-Defense Forces in support of the United States.
