China detains Japanese executives in dual-use technology export probe: report

Japanese executives, including senior officials from firms operating in China, have been apprehended by Chinese authorities amid a probe into alleged breaches of export restrictions on dual-use technology, according to Japanese media outlet The Mainichi. This development follows a series of enforcement actions by Chinese officials, including frequent inspections of Japanese corporate offices and interrogations of personnel.

Some of the detained individuals were apprehended upon arrival in China, reportedly seeking to cooperate with official investigations.

China's Ministry of Foreign Affairs declined to comment on the specific cases when contacted by Japanese media, but spokesman Guo Jiakun confirmed that Chinese authorities had investigated and dealt with the criminal cases in accordance with the law. The current round of detentions builds upon prior crackdowns, such as the arrest of two Japanese employees of a major heavy electrical machinery group in Dalian, Liaoning province, in May, on accusations of violating rare earth export regulations.

In late June, Beijing announced that two Japanese nationals had been detained for suspected legal violations. Tokyo informed China on the same day that the individuals were accused of smuggling banned export items.

In July, the Japanese embassy in China issued a warning that China had tightened its export controls on dual-use items, advising Japanese companies to exercise caution and consult its business support office if faced with similar allegations. Tensions between China and Japan have reached new heights since November, following Japanese Prime Minister Sanae Takaichi's assertion that an attack on Taiwan would constitute a security threat that could warrant Japanese military intervention.

Beijing, which considers Taiwan an integral part of its territory, vehemently rejects the notion of force being used to reunite the island. Despite repeated rejections from Beijing, Takaichi stood firm in her stance. The diplomatic rift escalated in June when China added 20 more Japanese entities involved in bolstering military capabilities to its export control list, aiming to dissuade "remilitarization" and efforts to acquire nuclear weapons.

Subsequently, the Chinese commerce ministry launched a hotline offering rewards for tips on illegal dual-use exports.

According to an analysis by Nikkei Asia of Chinese customs data, exports from China to Japan of seven essential restricted rare earths dropped by 51 per cent between January and June, compared to a 16 per cent global decline. In April, China imposed export controls on certain heavy rare earths and magnets containing them. As the world's largest producer and consumer of rare earths, China processes around 90 per cent of the global supply of these critical minerals.