Kyodo News: Two Japanese Fuji Electric Employees Formally Arrested in Dalian

(CNA Taipei, July 1) - Japan's Kyodo News Agency reported today that two Japanese employees of Fuji Electric were formally arrested in Dalian, Liaoning Province, China in June.

Regarding the detention of two Japanese employees of Fuji Electric Group in Dalian in May, according to Kyodo News Chinese website, multiple sources revealed on the 1st that local customs formally arrested the two in June.

Chinese Foreign Ministry spokesperson Guo Jia Kun stated at a regular press conference that the two Japanese nationals were detained by Chinese authorities for violating laws. Japanese Chief Cabinet Secretary Minoru Terada revealed earlier at a press conference that Chinese customs had notified that the two were arrested in Dalian on May 18 and 25 on suspicion of "smuggling goods and items prohibited from import and export by the state."

Kyodo News previously quoted multiple informed sources as saying that the two Japanese employees of Fuji Electric Group were accused of attempting to export rare earth magnets by processing them into products such as electric motors in a disassembled state. The Chinese side questioned whether the purpose of the two was to extract rare earth magnets by disassembling and processing the products after export.

Against the backdrop of deteriorating bilateral relations, China strengthened export controls on dual-use items to Japan in January this year, including seven categories of rare earths, rare metals, and others.

It has become increasingly difficult for Japanese companies to obtain export permits for rare earths issued by China in the past six months, leading to a halt in procurement. This incident is reportedly related to China using rare earths to pressure Japan.

The report quoted informed sources as revealing that one of the detained Japanese nationals was a senior executive at Fuji Electric Group's China office, and the other is believed to be an individual on a business trip to China. Both were detained by Chinese customs in May on suspicion of smuggling goods prohibited from import and export by the Chinese state. (Editor: Chou Hui-ying / Chen Kai-yu) 1150701

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