China detains Japanese nationals over rare earth smuggling

China has detained two Japanese nationals on suspicion of smuggling goods prohibited from export, a case reportedly linked to rare earth materials, officials from both countries confirmed. The detentions, which occurred in the northeastern port city of Dalian last month, have heightened concerns over the legal and operational risks foreign companies face amid Beijing's tightening controls on critical minerals.

Japan's Chief Cabinet Secretary Minoru Kihara stated that one Japanese citizen was detained on May 18 and another on May 25. Both are suspected of violating Chinese laws against smuggling restricted goods and are reported to be in good health. Kihara declined to provide further details, citing privacy and an ongoing investigation. Chinese Foreign Ministry spokesperson Guo Jiakun confirmed the detentions for alleged violations of Chinese law and urged Japan to educate its citizens and companies to abide by local regulations.

Japanese media reports indicate at least one of the detained individuals is an employee of a major Japanese electrical machinery manufacturer, suspected of attempting to export processed products containing rare earth elements. The specific companies,...