By Austin Ramzy

HONG KONG -- A court in Beijing sentenced a Japanese pharmaceutical executive on Wednesday to 3 1/2 years in prison on charges of espionage, Japan said, in a case that heightened tensions between the two countries and concerns about legal risks for foreign businesspeople in China.

The executive, Hiroshi Nishiyama, was a veteran employee in China for Astellas Pharma who was first detained in March 2023 and accused of espionage, though no details of his alleged wrongdoing were released. China has an extensive definition of national security that has grown further following changes to its law against espionage in 2023.

Japan says that since 2015, at least 17 of its citizens have been held in China on spying allegations.

"We have consistently urged the Chinese side for the early release of Japanese nationals through various channels, including at the leader and foreign minister levels," the Japanese embassy in Beijing said in a statement on Wednesday. "It is deeply regrettable that a guilty sentence was handed down in this case."

Lin Jian, a spokesman for China's Ministry of Foreign Affairs, said that the case had been handled in accordance with the law. China supported good economic ties with Japan, he added.

"We welcome foreign companies to come to China," Lin said. "As long as they abide by the law, there is nothing to worry about."

Nishiyama had a variety of responsibilities for Astellas over some 20 years in China, including setting up factories, importing and exporting drug ingredients and selling imported drugs, people who know him said. He was detained shortly before he planned to return to Japan.

His arrest came as China was opening up from a lengthy period of stringent pandemic restrictions that had seen many foreign businesspeople leave. It added to a chill around business travel to China, with some executives worried they might be barred from leaving the country.

The same month Nishiyama was held, Chinese authorities raided the Beijing office of the U.S. due diligence firm Mintz Group and detained five of its employees. The company said in March that all of its detained staff had been released. Chinese authorities imposed fines of more than $2 million on Mintz, which they accused of conducting unapproved statistical work.

An Astellas spokesman said the company wouldn't comment on the case against its employee in China. "Ensuring the health and safety of our employees is our top priority, and we will continue to work closely with relevant parties to respond appropriately," the spokesman said.

Tensions between China and Japan have flared in recent years over issues including Japan's release of water from the Fukushima Daiichi nuclear power plant into the sea, the increasing presence of Chinese coast guard and naval vessels near Japan and lingering grievances over Imperial Japan's occupation of China in the 1930s and 40s.

Write to Austin Ramzy at austin.ramzy@wsj.com

(END) Dow Jones Newswires

July 16, 2025 03:39 ET (07:39 GMT)

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