China starts charging fees on Japanese chipmaking chemical after dumping probe

BEIJING, Sept 8 — China commenced collecting fees on Japanese imports of a crucial chipmaking chemical after concluding a probe alleged dumping practices that harmed the domestic market, according to the ministry. The investigation targeted dichlorosilane, a key ingredient in semiconductor production, and was initiated amid heightened diplomatic tensions following Japan's suggestion of potential intervention in the Taiwan issue.

In a statement on Monday, China's commerce ministry revealed that preliminary evidence pointed towards the Japanese imports being involved in dumping, which significantly impacted the domestic dichlorosilane industry. Consequently, China announced it would impose temporary anti-dumping measures, including a security deposit, starting from Tuesday.

Under the new policy, Japanese firms must pay an extra fee to China's customs authority, calculated using a predetermined deposit rate. All Japanese companies are subject to a rate of 99.2 percent, except for Tokyo-based Denal Silane, which faces a lower rate of 80.8 percent. A representative from Shin-Etsu Chemical, a major Japanese chemical conglomerate, stated that the firm is evaluating the measure but emphasized that it constitutes a minor portion of their business and should not significantly affect their overall operations.

Japan's Chief Cabinet Secretary, Minoru Kihara, confirmed that Tokyo would respond appropriately to China's export control measures, adding that Japan has lodged a strong protest and formally requested the withdrawal of these anti-dumping measures. The Chinese ministry did not disclose the duration of the deposit requirement or the date for a final ruling.