The fishing boat tried to flee when ordered to stop for an inspection inside Japan's territorial waters, authorities say.
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The boat was in Japan's exclusive economic zone off Nagasaki Prefecture in the south-west when it was intercepted and its captain arrested on Thursday, according to the country's fisheries agency.
"The vessel's captain was ordered to stop for an inspection by a fisheries inspector, but the vessel failed to comply and fled," the fisheries agency said.
The seizure is the first time since 2022 that the agency has seized a Chinese fishing boat. China has yet to react to Japan's statement.
There were 11 people aboard, including the captain who is a 47-year-old Chinese national, the fisheries agency said.
Authorities and Japanese media have described the seized vessel as a "tiger net fishing boat" with a high capacity.
"We will continue to take resolute action in our enforcement activities to prevent and deter illegal fishing operations by foreign vessels," Japan's Chief Cabinet Secretary Minoru Kihara said on Friday.
Thursday's incident comes amid strained relations after Japan's Prime Minister Sanae Takaichi enraged China in November by suggesting Tokyo would intervene militarily if Beijing sought to take Taiwan by force.
China has long insisted that Taiwan, occupied for decades by Japan until 1945, is its territory.
It has not ruled out using force to achieve what it calls "reunification".
In response to Takaichi's remarks, which China's foreign ministry described as "egregious", Beijing summoned Tokyo's ambassador and warned its citizens to reconsider travel and study in Japan.
That led to a sharp drop in visits to Japan by Chinese tourists, and a subsequent hit to Japanese stocks related to tourism and retail.
As the diplomatic spat deepened during the end of 2025, Beijing repeatedly demanded that Takaichi retract her comments, and its foreign ministry warned Japan to "stop playing with fire".
Japanese artists touring China have also had shows cancelled and releases of popular
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