Businessman detention shocks Japan firms in China, dampens sentiment

The recent detention of a senior Japanese pharmaceutical company official in Beijing has shocked Japanese businesses operating in China, with momentum for their China-bound investment dampened as the incident has triggered fresh anxiety over the risks of doing business in the Communist-led nation.

The businessman in his 50s, who was detained in the Chinese capital this month and whom Astellas Pharma Inc. has since confirmed as one of its employees, may be facing spying allegations.

But it is customary in China that allegations concerning national security are not released and trials are closed...