Amid heightened diplomatic tensions, two Japanese nationals were detained by Chinese customs authorities in May, one apparently over a suspected attempt to take rare earths out of the country despite export controls.

At a news conference on June 24, Chief Cabinet Secretary Minoru Kihara said one Japanese was detained on May 18 and the other on May 25, both in Dalian, Liaoning province, on suspicion of smuggling goods prohibited from export or import under national regulations.

He declined to disclose details, citing the ongoing investigation and the need to protect privacy.

According to reporting by The Asahi Shimbun, one of the individuals is believed to be an employee of a major Japanese electronics manufacturer in Dalian.

He processed goods related to rare earths subject to export controls and attempted to take them out of China by treating them as items exempt from such restrictions, sources said.

As Beijing classifies rare earths as strategic materials and tightens export controls, Chinese authorities are believed to have taken issue with such conduct.

Kihara said the government has been informed that there are no particular issues about the health conditions of the detained Japanese nationals.

“We will continue to respond appropriately from the standpoint of protecting Japanese nationals while maintaining contact with the individuals in question and related parties,” he said.

In November 2025, Prime Minister Sanae Takaichi’s Diet remarks regarding a potential Taiwan contingency provoked a backlash from China, straining bilateral relations and leading Beijing to roll out what amounts to countermeasures.

China’s commerce ministry strengthened export restrictions on dual-use goods bound for Japan in January and tightened them further in late February.

The Chinese-designated products with military and civilian applications include critical minerals such as rare earths.

While the ministry maintains that the measure has no impact on civilian goods, companies operating in China have noted that it has become difficult to obtain export permits.

Bilateral tensions have persisted over security issues since Takaichi’s remarks.

Japan has not been invited to international conferences hosted by the Chinese government and other entities. Exchanges in the economic sector have also been affected.

On the other hand, four senior members of an economic organization aimed at encouraging trade with China met with Hua Chunying, a vice foreign minister, in the country on June 22.

The four representatives from the Association for the Promotion of International Trade, Japan, included Lower House member Gaku Hashimoto from the ruling Liberal Democratic Party.

Some business organizations have also visited China on inspection tours, raising hopes for improved economic exchanges.

On the political front, trade minister Ryosei Akazawa contacted Wang Wentao, China’s commerce minister, in the Chinese city of Suzhou in May at a meeting of trade ministers from members of the Asia-Pacific Economic Cooperation forum.

However, China continues to criticize the Takaichi administration, arguing that its defense buildup poses a security threat and labeling it “new militarism.”

Beijing has not changed its stance of calling for the prime minister to retract her remarks, and there is no clear prospect for an improvement in Japan-China relations.