Two Japanese nationals employed by a major Japanese heavy electrical machinery company have been detained in China on suspicion of smuggling prohibited rare earth products, the latest incident in Beijing’s aggressive use of strategic resources as a geopolitical weapon.
Detention Confirmed by Japanese Government
On the morning of June 24, Japanese Cabinet Secretary Minoru Kihara confirmed at a press conference that the two Japanese men were detained in Dalian, China, in May. One was taken into custody on May 18 and the other on May 25 by Chinese customs authorities on charges of violating laws against smuggling state-prohibited import and export goods.
Kihara stated that both individuals are in normal health and that the Japanese government will continue communicating with the detainees and relevant parties to protect Japanese citizens’ rights and handle the matter appropriately. Japanese media reports, including from Asahi Shimbun and Kyodo News, identify at least one as an employee of a major Japanese heavy electrical machinery firm. The men are suspected of attempting to export processed rare earth products outside China. Rare earth elements are among China’s tightly controlled strategic resources, particularly in exports to Japan.
The two latest cases do not involve Japan’s espionage law, unlike most previous detentions.
Pattern of Retaliation Against Japan
Japan-China relations have deteriorated significantly since Japanese Prime Minister Sanae Takaichi’s statements on “Taiwan contingencies” in the Diet in November 2025. In response, Beijing imposed retaliatory measures, strengthening export controls on dual-use military and civilian products to Japan in January 2026 and tightening restrictions further in late February.
As of July last year, 17 Japanese nationals had been detained by Chinese authorities, with five still held. Most were accused of violating China’s anti-espionage law. In one high-profile case, a court in Beijing sentenced a senior executive in his 60s from Japanese pharmaceutical company Astellas Pharma to three and a half years in prison for alleged espionage activities.
This Is Part of CCP’s Rare Earth and Resource Warfare
Rare earths are critical for high-tech manufacturing, defense, and green energy technologies. China has long weaponized its dominant position in the global rare earth supply chain.
Despite Xi Jinping’s promises to President Trump to ensure rare earth exports, China’s Ministry of Commerce on June 22, 2026, imposed export control measures on 10 U.S. entities. Among those affected are rare earth-related companies including MP Materials (operator of the Mountain Pass rare earth mine in California, one of America’s largest producers) and USA Rare Earth (a rare earth magnet producer). Other listed entities are linked to defense, drones, and aerospace sectors, such as Aveox, Oshkosh Defense, and L3Harris Maritime Services.
This action demonstrates once again that the CCP’s promises cannot be trusted. Export restrictions and detentions serve as tools of economic coercion against Japan, the United States, and other nations that challenge Beijing’s ambitions.
Japanese Leadership Pushes Back
On June 18, Prime Minister Takaichi publicly criticized China’s rare earth export restrictions, warning they could disrupt supply chains for G7 nations and like-minded countries. She stressed the need for coordinated international responses to counter the CCP’s economic coercion. The G7 summit statement expressed “serious concern” and condemnation over arbitrary export controls on critical minerals and called for countermeasures.
Japan continues to demand the early release of its detained citizens while navigating Beijing’s resource warfare tactics. These incidents highlight the risks foreign companies and individuals face when operating in or dealing with China’s opaque and politically driven regulatory environment.