A rare earth mine in Ganxian county in central China's Jiangxi province. Photo by STR / EPA
June 30 (Asia Today) -- China's detention of two Japanese corporate employees over alleged rare-earth smuggling is turning an intensifying dispute with Japan into a criminal and supply-chain risk that could also affect South Korean manufacturers.
The Yomiuri Shimbun reported Tuesday that Chinese authorities suspect the two employees of Fuji Electric of placing controlled rare-earth magnets inside finished products for shipment to Japan, where the magnets were allegedly intended to be removed and reused.
The case is believed to be the first known criminal investigation in China involving employees of a Japanese company over alleged rare-earth smuggling.
Japanese and Chinese officials have confirmed the detentions but have not publicly disclosed the products involved or the full details of the allegations. The two men were detained separately in Dalian, Liaoning province, on May 18 and May 25 as part of the same case.
