China's Espionage Verdict Sparks Shock and Concern Among Business Community

A Japanese employee of Astellas Pharma was sentenced to espionage charges by a Beijing court. Former Japanese ambassador to China, Hideo Tarumi, believes the outcome could have been different. The verdict has shocked those who work in or deal with China.

A Beijing court has sentenced a Japanese employee of Astellas Pharma to 3.5 years in prison on espionage charges. The man, a 60-year-old executive at the pharmaceutical company's China unit, was detained in March 2023 and formally arrested in October 2023. The sentencing has raised concerns within the Japanese business community, with former ambassador Hideo Tarumi suggesting that the outcome could have been different. The verdict has shocked those who work in or deal with China, highlighting the ongoing tensions between the two countries.

The Japanese government has repeatedly urged Beijing to free the man, with Ambassador Kenji Kanasugi describing the sentencing as "extremely regrettable." China, however, maintains that its judicial authorities handle cases in accordance with the law. The country has stepped up scrutiny of foreign organizations and individuals in the name of protecting national security, with a number of foreigners held since the introduction of a counterespionage law in 2014 and a national security law in 2015.

The sentencing comes as China's influence in the region grows, with Japan perceiving it as a threat to its national security and economy. The risks of getting caught in China on espionage allegations are a growing concern in Japan, including its business community. A safety handbook for visitors to China, published by the Japanese embassy in Beijing, urges visitors to use extra caution.

Since 2014, 17 Japanese citizens have been detained for alleged spying, with five still in China. The revised counterespionage law, which took effect in 2023, has broadened the scope of what constitutes spying activities, raising concerns about its arbitrary enforcement. The verdict is likely to impact bilateral ties between Japan and China, with the Japanese government continuing to demand the early release of detained Japanese nationals.

References:
[1] https://apnews.com/article/japan-china-espionage-sentence-astellas-2852e3a3658c3201711e9464a9fc5b65
[2] https://www.reuters.com/world/china/china-hands-3-12-year-prison-sentence-astellas-japanese-employee-nikkei-says-2025-07-16/
[3] https://mainichi.jp/english/articles/20250716/p2g/00m/0in/015000c
[4] https://www.reuters.com/world/china/chinas-spy-agency-attacks-foreign-efforts-steal-rare-earths-2025-07-18/
[5] https://economictimes.indiatimes.com/industry/cons-products/electronics/dixons-jv-firms-with-chinese-companies-to-face-govt-scrutiny-under-press-note-3-rules/articleshow/122585341.cms