China’s decision to open an anti-dumping investigation into imports of dichlorosilane, a key material used in integrated circuit manufacturing, weighed on Japanese chemical stocks on Thursday.
Shin-Etsu Chemical, one of Japan’s largest chemical producers, fell 3.4%, leading losses across the sector. Mitsubishi Chemical Holdings slipped 0.4%, while Mitsui Chemicals declined 1.3%. Investor concerns intensified after reports noted that Shin-Etsu and Mitsubishi were cited in the investigation.
China Says Probe Was Triggered by Domestic Producers
China’s Ministry of Commerce said the investigation was launched following complaints from domestic producers. According to the ministry, Chinese manufacturers argued that rising imports from Japan and declining prices were harming local producers.
Dichlorosilane is considered an important input for integrated circuit production, making the probe closely watched not only from a trade perspective but also for its potential impact on semiconductor supply chains.
Move Follows New Export Restrictions
The investigation came just one day after Beijing announced restrictions on exports of so-called dual-use products to Japan, referring to items that could be used for military applications. The timing has heightened concerns that trade-related measures may further strain relations between the two countries.
Nikkei Also Declines Amid Diplomatic Tensions
The broader Japanese market also weakened. The Nikkei 225 fell 1%, as investors grew cautious about the risk of escalating diplomatic tensions between Japan and China.
Tensions have shown few signs of easing in early 2026, especially after comments by Japan’s Prime Minister Sanae Takaichi regarding Taiwan added new friction to already fragile relations.
