China to slap 'tariff' on chip-making material from Japan | NHK WORLD-JAPAN News

China's government says it will impose what amounts to a tariff on a chemical imported from Japan that's used in making semiconductors.

China's Commerce Ministry on Monday said the prices of the dichlorosilane material are kept unfairly low and the imports are hurting domestic producers.

It says importers will be required to put up "extra deposits" ranging from 80.8 percent to 99.2 percent.

The requirement will apply to products from Shin-Etsu Chemical and other Japanese companies.

The ministry said in January that it was investigating the prices of the imports.

The announcement follows moves by Beijing to restrict exports to Japan. They include rare earth materials and other goods that China says have both military and private-sector uses.

The curbs came after Japanese Prime Minister Takaichi Sanae made comments late last year about a possible response to a Taiwan contingency.

Japan's Chief Cabinet Secretary Kihara Minoru responded to the latest development.

He said: "The Japanese government will coordinate closely with targeted companies to thoroughly assess the Chinese investigation and its impact. We will take steps to ensure their operations are not unduly affected."

Kihara also said China's export controls on rare earth materials and other items exclusively target Japan, which goes against international trade practices.

He said his government has lodged a strong protest and called for a retraction.