Jan. 7 (UPI) — China is opening an anti-dumping investigation into Japan over a key chemical used in manufacturing semiconductors, the Ministry of Commerce announced Wednesday.
The investigation is set to last a year as China probes whether Japan has been selling the chemical dichlorosilane at an unfairly low price — dumping — harming its domestic producers.
Dichlorosaline is commonly used to manufacture computer chips.
The investigation stems from a complaint by the Chinese company Sunfar that submitted evidence showing a 31% decrease in prices on the chemical from Japan despite an increase in imports between 2022 and 2024.
A review of the complaint found that it met the criteria for further investigation under Chinese laws and rules set out by the World Trade Organization.
“The investigating authority will conduct the investigation in accordance with the law, fully safeguard the rights of all interested parties and make an objective and impartial ruling based on the investigation results,” the Chinese Ministry of Commerce said in a statement.
The ensuing investigation will dig into dichlorosilane imports from Japan from July 1, 2024, through June 30, 2025.
Japan is home to the three leading producers of dichlorosilane, making it the top exporter of the chemical.
China’s top dichlorosilane producer has the fourth-largest market share of the chemical in the world. It relies heavily on imports from Japan, with Japanese products making up about 72% of China’s domestic market between 2022 and 2024.
On Tuesday, China banned the export of products to Japan’s military. Japan has warned China about pursuing control over Taiwan as China believes Taiwan to be part of its territory.
Wednesday’s announcement continues the escalating tension between the countries.