Japan Files Formal Protest as China Enforces New Export Curbs on Critical Chipmaking Material

POLICY WIRE — Tokyo, Japan — The Japanese government has formally protested against fresh Chinese export restrictions targeting a vital chemical used in semiconductor manufacturing, announcing on Tuesday that officials are actively assessing the potential fallout for domestic enterprises.

Beijing initiated the trade barrier on shipments of dichlorosilane originating from Japan, asserting that inbound volumes of the substance—commonly referred to as DCS—have breached anti-dumping rules and caused injury to domestic industries inside China.

Under the new directives taking effect Tuesday, businesses importing the chemical compound from Japan are required to deposit cash guarantees with Chinese customs authorities at rates reaching as high as 99.2%.

This requirement directly impacts prominent Japanese exporters of the material, including Shin-Etsu Chemical and Denal Silane, alongside other regional suppliers.

Chinese authorities noted that the restriction remains provisional while an ongoing inquiry moves forward, with a definitive determination scheduled for a later date.

Diplomatic ties between Beijing and Tokyo have remained tense since November, following remarks by Japanese Prime Minister Sanae Takaichi that provoked Beijing by hinting at potential Japanese military involvement if China deployed armed force against Taiwan, the self-governing island claimed by Beijing as its own territory.

Addressing reporters in Tokyo, Chief Cabinet Secretary Minoru Kihara registered a formal protest against the new regulations and emphasized that the administration in Tokyo would take appropriate action to protect Japanese businesses from unfair damage.

The anti-dumping investigation into Japanese DCS shipments was initiated by China’s commerce ministry as part of a broader package of restrictive actions directed at Japan, which also features export controls targeting Japanese companies over dual-use products with potential military applications.

DCS plays an essential role in chemical vapor deposition methods used to deposit microscopic films of silicon, oxide, and other materials during the production of memory and logic semiconductors.

Although the international market for the compound is intensely competitive, Japan maintains its status as the world’s foremost supplier of ultrapure DCS required for advanced computer chip fabrication.

Reporting by Policy-Wire (PW)