China Launches Anti-Dumping Probe Against Japan Over Key Chip-Making Chemical

Group 1 - The China-Japan trade tensions are escalating, with Japan warning that China's export curbs could impact over 40% of its exports to Japan [1] - China's new punitive measures include controls on dual-use items, likely affecting shipments of semiconductors and rare earth materials to Japan's defense sector [3][6] - An anti-dumping investigation into Japanese dichlorosilane imports has been initiated by China, which is critical for semiconductor manufacturing [6][7] Group 2 - The investigation into dichlorosilane imports is expected to conclude by January next year, with a possibility of extension [7] - Preliminary evidence indicates a 31% cumulative price decline in dichlorosilane imports from Japan from 2022 to 2024, despite an overall increasing volume trend [8] - Shares related to rare earths surged across Asia-Pacific markets following the announcement, with notable increases in companies like Toyo Engineering Corp and Lynas Rare Earths Ltd [11] Group 3 - The vague nature of China's announcement has led to speculation about potential de-escalation, with some analysts suggesting it may be a strategy to pressure Japan for concessions [9][10] - The ongoing tensions have caused jitters in the stock market, particularly after a strong start to the year for regional stocks, indicating a potential overheating situation [12] - China has been steadily retaliating against Japan through various measures, including trade restrictions and military threats [13]