China Detains Japanese Worker in Dalian Over Rare Earth Exports as Curbs Tighten Since January
Updated
Updated · Nikkei Asia · Jun 24
China Detains Japanese Worker in Dalian Over Rare Earth Exports as Curbs Tighten Since January
3 articles · Updated · Nikkei Asia · Jun 24
Summary
A Japanese employee at a major heavy electric machinery maker’s China unit was detained in May in Dalian, with sources saying the case may involve attempts to take rare earth-related products overseas.
Chinese customs appear to have viewed the worker’s conduct as problematic under tighter export controls, though sources said they do not suspect espionage and the exact alleged illegality remains unclear.
China tightened controls in January on Japan-bound dual-use shipments, including rare earths, materials it dominates globally and that are vital for products from electric vehicles to weapons.
The detention adds to pressure in already strained China-Japan ties after Prime Minister Sanae Takaichi’s November remarks on a possible response to any Chinese attack on Taiwan.
It also follows another high-profile case: a Chinese court in July 2025 sentenced an Astellas Pharma executive from Japan to 3 years and 6 months in prison on spying charges.
Can Japan's global search for minerals break China's stranglehold on the world's rare earth supply?
Are foreign businesspeople now pawns in a new cold war fought over critical minerals?
As China weaponizes rare earths, is the global high-tech supply chain facing an imminent collapse?
Dalian Detentions and China’s Rare Earth Controls: How the 2026 Smuggling Case Exposed Global Supply Chain Risks and Japan-China Tensions
Overview
In May 2026, two Japanese nationals were detained in Dalian on suspicion of smuggling prohibited goods, further escalating diplomatic tensions between China and Japan. The first arrest occurred on May 18, followed by a second on May 25, with both individuals facing charges related to restricted items under Chinese law. These detentions happened as China tightened export controls on dual-use items bound for Japan, reflecting a broader strategy to strengthen regulations and assert control over critical materials. Japan’s government confirmed the incidents, highlighting the sensitive and increasingly strained relationship between the two countries.