China Hits Japan with Anti-Dumping Measures on Chip Chemical

China has imposed preliminary anti-dumping measures on a Japanese chemical used to manufacture semiconductors, adding a new economic front to its dispute with Tokyo over Taiwan.

From Sept. 8, companies importing Japanese dichlorosilane must provide cash deposits of up to 99.2 per cent, China’s Commerce Ministry said. The chemical is used to process silicon wafers into semiconductors.

The deposits were set at 80.8 per cent for Denal Silane Co and 99.2 per cent for Shin-Etsu Chemical Co and other Japanese producers. China’s ministry said dumping had caused substantial harm to the country’s domestic industry.

The measures follow a preliminary ruling in an anti-dumping investigation that China launched in January. They come during a broader feud between Beijing and Tokyo that began in November 2025, when Japanese Prime Minister Sanae Takaichi suggested Japan could deploy its military if China attempted to seize Taiwan, a self-ruled democracy claimed by Beijing.

China has since warned travellers against visiting Japan and tightened some export controls. The latest action also comes before Takaichi is expected to visit the United States in September. Chinese President Xi Jinping plans to meet US President Donald Trump at the White House on Sept. 24.

Japan remains the global leader in ultra-high-purity dichlorosilane, while China is seeking to expand its upstream semiconductor supply chain through research and development of key materials and tools. Japan’s exports accounted for about 33 per cent of China’s dichlorosilane imports in July, valued at US$2.6 million. South Korea overtook Japan as China’s largest supplier in 2025.