Several Japanese nationals associated with Japanese companies were detained in China in connection with export controls on dual-use goods, including rare earths, destined for Japan. Multiple sources familiar with the matter said that some were detained after entering China for questioning by local authorities.
Several presidents and other executives of Japanese companies with operations in China were detained in connection with export controls on goods destined for Japan. On-site inspections and questioning have become frequent, and there have also been confirmed cases of Japanese nationals being detained after entering China to respond to questioning.
In May, 2 Japanese nationals from a major heavy electrical equipment manufacturer group were detained in Dalian, Liaoning Province, over the removal of rare earth-related products. The Japanese government has warned relevant parties to consult the Ministry of Foreign Affairs, the Ministry of Economy, Trade and Industry, or the Embassy of Japan in China if contacted by Chinese authorities.
China’s export controls were strengthened amid increased economic pressure following remarks by the prime minister last autumn, with regulatory measures announced in January. In June, the number of covered companies and organizations was doubled, and in July, China established a reporting hotline for illegal exports and encouraged reporting. The series of detentions is believed to have occurred against this backdrop.
In July, the Embassy of Japan in China issued a warning for Japanese corporate personnel, pointing out that violations of export control laws are subject to fines and criminal penalties. A Japanese government official said, “Entering China when a violation is suspected carries a high level of risk.”
In response, the Japanese government continues to take practical measures, including asking corporate personnel to seek advice in advance.