China starts charging fees on chipmaking chemical from Japan

China has initiated the collection of fees on imports of a crucial chipmaking chemical from Japan, following an anti-dumping investigation. The Chinese Commerce Ministry announced in January that it was probing dichlorosilane, a key ingredient used in semiconductor manufacturing, which is primarily sourced from Japan - a leading global supplier.

The investigation was prompted by heightened diplomatic tensions between the two nations, after Japanese Prime Minister Sanae Takaichi suggested Tokyo might intervene if China attacked Taiwan, an island claimed by Beijing. The Ministry's preliminary findings indicate that the Japanese imports engaged in dumping practices, leading to substantial damage to the domestic Chinese dichlorosilane industry.

Consequently, the Ministry imposed temporary anti-dumping measures, requiring Japanese firms to pay a security deposit to Chinese customs authorities. The deposit amount varies, with Japanese firms facing a rate of 99.2%, except for Tokyo-based Denal Silane, which is subject to a lower rate of 80.8%. A representative from Japanese chemical giant Shin-Etsu Chemical stated that the firm is reviewing the measure, noting that it represents a small portion of their business and should not have a significant impact on their overall operations.

Japanese officials have vowed to respond appropriately to China's export control measures, with Japan formally protesting and requesting the withdrawal of these actions. The Ministry has not disclosed the duration for which the chemical will be subject to these deposits, nor the date of the final ruling.