China imposes up to 99.2% deposits on Japan’s chip chemical exports

  • China imposed cash-deposit requirements on Japanese dichlorosilane imports.
  • Deposits for affected imports can reach 99.2% starting Tuesday.
  • Beijing’s provisional measure remains subject to a final anti-dumping ruling.

China has imposed cash-deposit requirements of up to 99.2% on imports of dichlorosilane (DCS), a chemical used in semiconductor manufacturing, from Japan. The measure covers Shin-Etsu Chemical, Denal Silane and other Japanese exporters, and Beijing says it is provisional while an anti-dumping investigation continues. Japan protested through Chief Cabinet Secretary Minoru Kihara, who said Tokyo would "respond appropriately" to prevent unfair harm to Japanese companies. The action comes amid deteriorating China-Japan relations since November, when Japanese Prime Minister Sanae Takaichi suggested Japan's military could intervene if China used force against Taiwan. China has also restricted Japanese companies' access to dual-use items with potential military applications. Japan is the leading producer of ultrapure DCS for chip fabrication, although the global market is highly competitive.

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