Chinese police have confirmed they are holding 17 people in relation to a beef smuggling ring.

The Shanghai Public Security Bureau said it had seized 13 tonnes of beef that were being smuggled from Japan.

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China banned Japanese beef in 2001 on the back of bird flu concerns. The authorities say red flags were raised last October when a company called Village House was selling Kobe beef in a "surprising number" to other food companies.

The gang – police confirmed – has been headed up by Japan's Eastern Tibet Inc., which allegedly smuggled at least 100 tonnes of beef over two years through Cambodia and other countries, making profits of "tens of millions".

So far not all suspects have been officially arrested. Nine of the 17 are awaiting trial on bail.

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