Japan has lodged a protest against Chinese controls that limit exports of a key chemical compound essential for manufacturing computer chips, with Tokyo now studying the potential repercussions for its domestic companies. The measure, which took effect Tuesday, requires companies importing dichlorosilane (DCS) from Japan to provide cash deposits to Chinese customs at rates reaching up to 99.2%.
Beijing stated that the export restrictions are a provisional measure stemming from an investigation into alleged violations of anti-dumping regulations, which China claims have harmed its domestic industry. A final ruling on the matter is pending.
This development occurs amidst a period of strained relations between China and Japan. Tensions were notably heightened in November when Japanese Prime Minister Sanae Takaichi's remarks about potential Japanese military intervention if China used force on Taiwan, a self-ruled island claimed by Beijing, drew ire from China.
In response to the new curbs, Japan's Chief Cabinet Secretary Minoru Kihara announced that Tokyo would "respond appropriately" to prevent unfair damage to Japanese businesses. China's commerce ministry initiated an anti-dumping probe into Japanese DCS as part of a broader set of measures targeting Japan. Previously, Beijing had also implemented export controls on certain dual-use items destined for Japanese firms, items that could be repurposed for military applications.
DCS plays a critical role in semiconductor fabrication, used in a chemical vapor process to deposit thin layers of silicon or other films onto logic and memory chips. While the global DCS market is competitive, Japan holds a leading position as a producer of the ultrapure grade of DCS required for advanced computer chip manufacturing.