The recent indictment of a Japanese employee of Astellas Pharma in China on espionage charges has reignited concerns over Beijing’s use of detained foreign nationals as leverage in diplomatic and economic negotiations. The case is a reminder of the growing complexities and tensions in Japan-China relations, especially as China continues to broaden the scope of its counterespionage laws.
The Case of the Japanese Employee
In March 2023, a Japanese man in his 50s working for Astellas Pharma was detained by Chinese state security authorities just before he was due to leave the country. He was officially arrested in October 2023 on allegations of violating China’s Criminal Law and Counterespionage Law. Despite the gravity of the charges, the Chinese authorities have provided little transparency regarding the specific nature of his alleged offenses or the circumstances of his detention.
This incident is not an isolated one. Since China’s counterespionage law was enacted in 2014, 17 Japanese nationals have been detained on similar suspicions, with five still remaining in custody. The detentions have raised alarm in Japan, particularly given the opaque and seemingly arbitrary manner in which China applies its laws on espionage.
China’s Expanding Counterespionage Laws
The detention of foreign nationals under espionage charges has become a hallmark of the Xi Jinping administration’s focus on national security. In July 2023, China introduced amendments to its counterespionage law, significantly broadening the activities that could be considered espionage. The revised law now covers the transfer of “other documents, data, materials, or articles related to national security and interests,” but deliberately leaves the definition of “national security and interests” unclear.
This ambiguity gives Chinese authorities a broad mandate to detain individuals and has created a climate of fear and uncertainty among foreign nationals and businesses operating in China. The implications are far-reaching, particularly as China simultaneously seeks to attract foreign investment to stimulate its sluggish economy. The crackdown on alleged espionage, however, is having the opposite effect, with foreign companies increasingly wary of the risks of operating in China.
Diplomatic Fallout
The detention of Japanese nationals has become a significant strain on Japan-China relations. When Japanese Foreign Minister Yoko Kamikawa met with her Chinese counterpart Wang Yi in Laos in July 2024, she made a direct appeal for the early release of the detained Japanese nationals. Wang Yi’s response, however, was less than reassuring. He remarked that Japan-China relations were at a critical juncture, implying that Japan needed to adopt a more favorable and rational policy toward China.
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Wang’s comments have been interpreted by some analysts as a thinly veiled demand for concessions from Japan in exchange for the release of its nationals. This tactic of using detained foreign nationals as bargaining chips is not new but has become more pronounced under Xi’s leadership.
The Impact on Foreign Investment
China’s increasingly aggressive stance on national security is having a detrimental impact on its own economic interests. Foreign companies, including those from Japan, are reevaluating their operations in China due to the heightened risk of arbitrary detention and prosecution of their employees. The chilling effect on foreign investment is palpable, with many companies choosing to scale back or divert their investments to other countries in the region.
For China, this approach is shortsighted. While the government seeks to maintain tight control over national security, it is simultaneously undermining the confidence of foreign investors, which could have long-term negative consequences for its economy.
Japan’s Response and the Way Forward
The Japanese government has made it clear that the protection of its citizens abroad is a top priority. Foreign Minister Kamikawa and the foreign ministry are pushing for greater transparency from China and are working tirelessly to secure the release of the detained nationals. However, Japan must also navigate the delicate balance of addressing these detentions without further escalating tensions with China.
The detention of Japanese nationals in China under the guise of counterespionage is a troubling development that reflects the broader challenges in Japan-China relations. As both countries stand at a diplomatic crossroads, the path forward will require careful negotiation, mutual respect for the rule of law, and a commitment to resolving disputes through dialogue rather than coercion.
