China warns Japan businesses over spying after conviction: sources
A high-ranking Chinese government official has warned Japan’s business community against engaging in espionage activities in China, following the conviction of a Japanese company employee for spying, diplomatic sources revealed.
The warning was delivered in person to a prominent Japanese business figure, whose name has not been disclosed. It came shortly after a Chinese court sentenced an employee of Astellas Pharma Inc. to three years and six months in prison for espionage in July, according to the sources.
It is rare for Chinese officials to communicate such messages directly to Japanese business leaders without going through official government channels. This direct pressure from Beijing may heighten concerns among Japanese companies operating in China, as fears grow that routine business actions could be arbitrarily classified as espionage. This has created uncertainty over when and why individuals might be detained.
In the warning, the Chinese official strongly discouraged Japanese businesses from transferring state secrets out of China, especially at the request of Japanese intelligence agencies such as the Public Security Intelligence Agency.
While China maintains that business operations remain secure as long as firms abide by its counterespionage law, anxieties are increasing over the law’s selective application. This comes amid several convictions of Japanese company officials accused of spying.
Despite the tense message, the Chinese official expressed hope during the meeting to continue developing strong bilateral economic ties. He noted the deep interconnection between China and Japan through complex supply chains, underscoring the importance of maintaining cooperation between the two Asian nations.
The espionage ruling was handed down by the Beijing No. 2 Intermediate People’s Court on July 16. According to sources, the court found that the Astellas employee had provided information to a Japanese intelligence agency and received rewards in return.
The convicted individual had served as an executive at Astellas Pharma’s China unit and held a senior position at the Japanese Chamber of Commerce and Industry in China. He was detained in March 2023, shortly before he was due to return to Japan, formally arrested in October 2023, and indicted in August 2024.
Since China’s counterespionage law took effect in 2014, the Japanese government reports that 17 Japanese citizens, including this Astellas employee, have been detained on espionage allegations. Of these, five remain in China.
