Part of Kasasa Island bought by several Chinese nationals. Power lines and utility poles are now in place.
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Chinese acquisitions of Japanese real estate continue to accelerate. On Kasasa Island, a tiny speck in Yamaguchi Prefecture's Seto Inland Sea, sections of land have already passed into Chinese hands.
The properties overlook the Seto Inland Sea, with views of Nojima and Suo-Oshima. Additionally, the owners reportedly spoke of building a pier for yachts or ferries. Locals point out that from there, a small boat could easily reach Etajima. This island is home to the Maritime Self-Defense Force (JMSDF) base at Kure. Former army artillery sites and even Matsuyama are also within an hour's journey.
Ostensibly purchased for vacation homes, the properties have seen logging roads cleared, utility poles erected, and basic infrastructure gradually installed. Chinese visitors now tour the island scouting for plots, prompting residents to worry that "the entire island could be bought up." Similar cases are emerging on other islands off Hiroshima.
A Quiet but Risky Transaction
Kasasa itself lies just two kilometers west of Komatsu Port on Suo-Oshima ー the nearest point of access to the island. Covering 940,000 square meters, the island is home to only seven residents in five households. A small ferry running three to four times daily remains its sole lifeline for people, goods, and medical support.
The properties overlook the Seto Inland Sea, with views of Nojima and Suo-Oshima. Additionally, the owners reportedly spoke of building a pier for yachts or ferries. Locals point out that from there, a small boat could easily reach Etajima, home to the Maritime Self-Defense Force (JMSDF) base at Kure. Former army artillery sites and even Matsuyama are also within an hour's journey.
When I visited in May 2025, I followed a newly repaired logging road lined with bright utility poles. After a 45-minute walk through forest, the trail opened onto a clearing where trees had been cut away. Land records indicate that two parcels, totaling 3,651 square meters, were sold between November 2017 and August 2018 to three Chinese nationals: a Shanghai businessman, his wife, and an acquaintance. Heavy machinery remained abandoned on the site.
A local real estate agent who brokered the deal said the Shanghai buyer had worked for three Japanese companies. He described the man as a "pro-Japanese" figure seeking a villa. "We judged there was no problem and went ahead with the sale," the agent explained.
Ownership Questions, Security Shadows
The same real estate agent said demand is strong, with inquiries coming from Chinese residents in Tokyo and Saitama willing to pay high prices, as well as inspection tours from Dalian. "We own 70% of Kasasa Island and ultimately want to attract corporate investment," the agent admitted. "If Chinese capital is acceptable, we don't mind."
Yet concerns are mounting. Kasasa lies in a vital maritime corridor near JMSDF and United States military bases. Under China's National Defense Mobilization Law and National Intelligence Law, citizens are required to cooperate with the state, fueling fears the island could be "used" in an emergency.
Legal Loopholes
Yamaguchi City Councilor Takashi Ishimoto, who has long studied foreign land acquisitions, issued a stark warning. With just a small boat, he noted, one can move freely across the Seto Inland Sea. "If things remain as they are, the island could effectively become Chinese," he said. It might even serve as a drone base, he cautioned, and if more islands off Hiroshima are bought in this way, "it would amount to nothing less than a virtual invasion."
Professor Kiyoto Adachi of Hokusei Gakuen University noted that, under Japan's Foreign Exchange and Foreign Trade Act, foreign buyers are only required to report acquisitions after the fact, with no system in place for prior review. "Introducing a framework for advanced screening would be reasonable," he said, citing Australia, where authorities vet foreign property purchases to protect national interests and curb soaring prices.
He further noted, "If the well-being and social justice of residents are being undermined, some form of restriction becomes necessary." As possible measures, he suggested municipal-level tools such as scenic ordinances or special taxes on villa ownership.
Washington Leads on Land Controls
America faces the same dilemma. In July, Washington rolled out a National Farm Security Action Plan. The move was prompted by a 2022 case in North Dakota, where a US subsidiary of a Chinese food conglomerate purchased farmland near an Air Force reconnaissance base. Although the city council later withdrew its approval, it was unable to stop the sale. Similar cases have since surfaced in other states.
The Committee on Foreign Investment in the United States (CFIUS) reviews foreign acquisitions and can recommend presidential action if they pose a security threat. Until now, however, there was no nationwide mechanism to block such transactions. In announcing the plan, the Trump administration warned that the Chinese Communist Party had repeatedly acquired and misused American farmland.
Still Defenseless on Land Buys
Legal safeguards in Japan remain weak. Unlike most other World Trade Organization members, Japan failed to secure a reservation clause allowing limits on foreign land acquisitions when it signed the General Agreement on Trade in Services.
In 2022, the government enacted the National Land Use Planning Act, which permits monitoring of property around sensitive sites. But the law only requires prior notification, not government approval, leaving significant loopholes.
Japan still has on its books the 1925 Alien Land Law, which authorizes restrictions on foreign ownership of land deemed essential for national defense. However, enforcement orders were scrapped after World War II, leaving the statute dormant. Legal experts argue that if the WTO issue were resolved and new implementing regulations introduced, the law could be revived. Whether Japan can create a system capable of blocking sales that threaten national interests ultimately depends on political will.
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(Read a related article in Japanese.)
Author: The Sankei Shimbun
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