China hits Japan with anti-dumping measures on chip chemical

China unveiled preliminary anti-dumping measures on imports from Japan of a chemical used to make semiconductors, adding to its retaliation in a diplomatic dispute over Taiwan.

Companies importing Japanese dichlorosilane, used to process silicon wafers into semiconductors, are required to provide cash deposits of up to 99.2% from Tuesday, Beijing’s Commerce Ministry said.

Beijing and Tokyo have been embroiled in a feud since November last year, when Prime Minister Sanae Takaichi suggested Tokyo could deploy its military if China attempts to seize Taiwan, a self-ruled democracy claimed by Beijing. Since then, China has responded with moves like warning travelers to avoid Japan and tightening some export controls.

The move comes ahead of Takaichi’s expected visit to the U.S. this month. Chinese leader Xi Jinping also plans to meet U.S. President Donald Trump in the White House on Sept. 24.

Japan is the global leader in ultra-high purity dichlorosilane, though China has sought to expand upstream in the chip supply chain, nurturing research and development of key materials and tools.

The measures are part of a preliminary ruling resulting from an anti-dumping investigation China launched into dichlorosilane in January. China’s Commerce Ministry said that dumping caused substantial harm to China’s domestic industry.

The deposit rates were set at 80.8% for Denal Silane and 99.2% for Shin-Etsu Chemical and other Japanese producers, the Commerce Ministry said.

Japan used to be China’s biggest supplier of dichlorosilane, until South Korea overtook it in 2025. In July, imports from Japan were worth $2.6 million, accounting for about 33% of China’s total dichlorosilane imports, customs data show.