Chinese customs officials detained two Japanese nationals in Dalian, Liaoning province, on May 18 and May 25, 2026, over allegations of smuggling export-restricted rare earth element products, which are subject to strict Chinese export controls due to their dual-use military and civilian applications [1, 2, 3, 4, 5, 6, 7].

At least one detainee is a Japanese employee of a major heavy electrical equipment firm operating in China [8, 9, 2, 3, 4, 5, 10, 7]. China tightened controls on rare earth exports to Japan starting January 2026, following Prime Minister Sanae Takaichi's "Taiwan contingency" statements in November 2025, which increased tensions between the two countries [8, 9, 2, 3, 5, 10, 6, 7].

Japanese Chief Cabinet Secretary Minoru Kihara confirmed that the government has received notifications of the detentions from Chinese authorities and affirmed both detainees remain in good health. Kihara said Japan will take "appropriate measures from the perspective of protecting Japanese nationals" [1, 2, 3, 4, 6, 7]. Meanwhile, China's Foreign Ministry spokesperson Guo Jiakun stated that the detainees violated Chinese laws and urged Japanese citizens and companies to comply with Chinese regulations while in China [2, 3, 4, 5, 10, 6, 7].

The detentions have raised concerns within Japan over business risks and potential disruptions to supply chains for strategic minerals. Export volumes of rare earth magnets from China to Japan dropped sharply in May 2026, falling by 34.6% compared to previous years [8, 9, 2, 3, 5, 10]. Prime Minister Takaichi criticized China's export controls at the 2026 G7 summit, warning that these measures threaten Japanese supply chains and called for allied countries to create strategic reserves of key materials [8, 5, 6].

Reports note that the cases are not linked to violations of China's Anti-Espionage Law, differing from prior incidents such as the 2025 sentencing of a Japanese Astellas Pharma employee for alleged espionage in China [9, 2, 3, 10, 7].

Japanese officials are continuing diplomatic efforts to address the detentions amid deteriorating Sino-Japanese relations driven by geopolitical tensions and tightened export controls on dual-use rare earth products.

A public update on the situation was given by Chief Cabinet Secretary Kihara on June 24, 2026, confirming ongoing coordination to protect the detained nationals [1, 2, 3, 4, 6, 7].