China escalates chip material dispute with Japan

China has announced measures to counteract dumping on imports from Japan of dichlorosilane, a substance used in semiconductor manufacturing. Companies are now required to deposit investments amounting to up to 99.2%, starting Tuesday. This step is part of a diplomatic dispute over Taiwan between Beijing and Tokyo. The move comes ahead of an expected visit by Japan's Prime Minister to the United States, amid escalating Chinese actions including warnings and export controls. Japan remains the world's leading producer of this highly pure material, despite China's efforts to enhance its supply chain capabilities through research and development. The dumping has caused significant damage to the Chinese industry, with Japanese imports of the substance reaching $2.6 million in July, accounting for 33% of China's total imports of the material.

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