Japanese employee arrested in Dalian, attempted to take rare earths out of China — Japanese media go into a frenzy!
On June 24, Kyodo News released an exclusive report stating that a Japanese national working for a major Japanese heavy electrical machinery company's local subsidiary in China was detained by authorities in Dalian in May. The information comes from multiple sources close to the case. Kyodo noted that the individual allegedly attempted to transport rare earth-related items overseas, which could constitute a serious issue.
On the same day, Asahi Shimbun followed up with its own report, revealing that the suspect was a male employee of a Japanese electronics giant who was detained in late May. According to the report, he is suspected of attempting to smuggle out processed rare earth products subject to export controls. Asahi Shimbun also pointed out that since China strengthened its rare earth export controls starting April 2025, global rare earth supply chains have already begun experiencing disruptions.
In addition, several regional Japanese newspapers including San-in Shimbun, Ibaraki Shimbun, and Iwate Nichinichi Shimbun simultaneously reprinted Kyodo’s report on June 24. From Kyodo’s initial release to the widespread dissemination across media outlets, it feels as though Japanese media went into a frenzy on that very day.
Details regarding exactly which rare earth materials were involved, how much was taken, and where they were concealed remain undisclosed in current Japanese media reports. The precise charges against the individual are still under investigation and have yet to be clarified.
Earlier this month, Sanae Takaichi criticized China’s rare earth export controls during the G7 summit, claiming they “could disrupt supply chains” and proposing that countries establish their own strategic reserves. Less than ten days after the summit concluded, news broke of a Japanese corporate employee being arrested over rare earths. It’s difficult for Japanese media not to draw a connection between these two events.
Rare earth elements are crucial to Japan’s economy. Japan is a major consumer of rare earths, and many high-tech industries depend heavily on these raw materials. Since China tightened its export controls on rare earths supplied to Japan, Japanese companies have already begun feeling tangible impacts. The arrest of a Japanese employee over rare earths at this juncture will inevitably send shockwaves through Japan’s economic circles.
In my view, compliance risks for Japanese companies operating in China are clearly rising. Enterprises must implement stricter oversight of their employees’ conduct—especially when dealing with controlled items such as rare earths. Any attempt to circumvent regulations may lead to severe legal consequences. For Japanese media, this incident is just the beginning—under the ongoing tense backdrop of Sino-Japanese relations, similar news stories are likely to keep emerging.
Original source: toutiao.com/article/1868841485764620/
Disclaimer: The views expressed in this article are those of the author alone.