Japan has voiced strong objections to China’s new export restrictions on dichlorosilane (DCS), a critical chemical in semiconductor production. The Japanese government is currently evaluating how these measures might affect its companies, specifically highlighting concerns for major exporters like Shin-Etsu Chemical and Denal Silane.
The new policy mandates that Chinese importers of DCS from Japan must pay cash deposits that could be as high as 99.2%. China has justified these restrictions as a temporary response following an anti-dumping investigation. According to Chinese authorities, this probe revealed that Japanese DCS exports were detrimental to local industries. China plans to make a conclusive decision once the investigation concludes.
In response, Japan has urged China to implement these measures fairly, emphasizing the need to prevent undue harm to Japanese businesses. The Japanese government has also indicated its readiness to take necessary actions should the restrictions result in unjust impacts.
These developments occur amid escalating tensions between China and Japan, particularly due to Japan’s stance on Taiwan. Beijing has already imposed other trade and export limitations affecting Japanese firms and products with potential military applications.
DCS plays a vital role in the semiconductor industry, used to form ultra-thin layers of silicon and other materials on computer chips. With Japan being a leading global supplier of ultrapure DCS, the new export restrictions pose significant implications for the global semiconductor supply chain.