Japan protests Chinese anti-dumping curb on chipmaking chemical

Cash deposits of up to 99.2% required on Japanese dichlorosilane imports

Japan lodged a protest Tuesday against Chinese trade controls that will restrict Japanese exports of dichlorosilane, a chemical used to manufacture computer chips, with Tokyo saying it is studying the potential impact on Japanese exporters.

China’s authorities imposed the curb on imports of the material, also known as DCS, asserting that Japanese exports had violated anti-dumping regulations and harmed China’s domestic industry. Under the measure, effective Tuesday, companies importing dichlorosilane from Japan must provide cash deposits to Chinese customs at rates of up to 99.2%.

The requirement applies to Shin-Etsu Chemical and Denal Silane, among other Japanese exporters of DCS. Beijing characterized the action as provisional, with a final ruling to come later in the ongoing anti-dumping investigation.

The dispute adds to bilateral tensions that began in November, when Japanese Prime Minister Sanae Takaichi said Japan’s military could intervene if China used military force on Taiwan, a self-ruled island Beijing claims as its territory. The remarks angered Beijing.