China detains two Japanese nationals suspected of smuggling banned goods

China has detained two Japanese nationals suspected of smuggling banned goods, Tokyo said on Wednesday after media reported that an employee of a major Japanese electronics firm was among those arrested in a case involving rare earth-related exports.



The arrests could further strain relations between Asia's top two economies which have plunged since comments by Japan's leader Sanae Takaichi on Taiwan sparked a major dispute with Beijing late last year.



China notified Tokyo that a Japanese national had been detained in the port city of Dalian on May 18 on suspicion of violating a law against smuggling goods prohibited from import or export, Japan's top government spokesperson Minoru Kihara told a news briefing on Wednesday.



Another Japanese national was detained for the same reason on May 25, Kihara added.



"The (Japanese government) will continue taking appropriate steps to protect Japanese citizens, while keeping contact with the detained individuals and relevant parties," Kihara said.



One of the arrests relates to allegations of attempts to export products containing rare earths, which are widely restricted in China, Kyodo news agency and the Asahi newspaper reported on Wednesday, citing sources familiar with the matter.