China escalated its trade tensions with Japan on Wednesday by launching an investigation into imported dichlorosilane, a chemical gas used in making semiconductors, a day after Beijing imposed curbs on exports of so-called dual-use goods that could be used by Japan’s military.
China’s Commerce Ministry said in a statement that it launched the investigation following an application from the domestic industry. The ministry cited that the price of dichlorosilane imported from Japan decreased 31% between 2022 and 2024, and said it determined the dumping of imported products from Japan had damaged the production and operation of China’s domestic industry.
The move came a day after Beijing banned exports to Japan of dual-use goods that can have military applications. The trade escalation unfolded against a backdrop of mounting friction between Beijing and Tokyo over Taiwan and related comments by Japanese political leaders.
The AP reported that China had been showing mounting displeasure with Japan after new Japanese Prime Minister Sanae Takaichi suggested late last year that Japan’s military could intervene if China were to take action against Taiwan, which Beijing considers its own territory. The situation intensified again on Tuesday after a Japanese lawmaker, Hei Seki, visited Taiwan and called it an independent country.
Hei Seki, also known as Yo Kitano, has been banned from entering China, according to the report. It also said he was sanctioned by China last year for “spreading fallacies” about Taiwan and other disputed territories, and that he told reporters his arrival in Taiwan aimed to demonstrate that Taiwan and China are “different countries,” adding: “I came to Taiwan … to prove this point, and to tell the world that Taiwan is an independent country.”
Chinese Foreign Ministry spokesperson Mao Ning responded when asked about Hei Seki’s comments, retorting: “The nasty words of a petty villain like him are not worth commenting on,” the report said.
On the trade dispute, Japan’s side urged China to reverse the curbs. Masaaki Kanai, head of Asia Oceanian Affairs at Japan’s Foreign Ministry, urged China to scrap the measures and said a measure exclusively targeting Japan that deviates from international practice is unacceptable, while Japan had not announced retaliatory steps as of the report.
As the dispute between Beijing and Tokyo unfolded, speculation rose that China might target rare earths exports to Japan, similar to other critical-minerals restrictions China has imposed as part of its trade war with the United States. The report said China controls most of the global production of heavy rare earths, which are used in powerful, heat-resistant magnets for industries including defense and electric vehicles.
The AP said that although China’s Commerce Ministry did not mention new rare earths curbs, China Daily quoted anonymous sources as saying Beijing was considering tightening exports of certain rare earths to Japan. The report added that China Daily’s claim could not be independently confirmed.
The latest China-Japan trade measures were also followed while China sought closer ties with South Korea. South Korean President Lee Jae Myung wrapped up a four-day trip to China—his first since taking office in June—after meeting Xi Jinping, with both leaders overseeing cooperation agreements in technology, trade, transportation and environmental protection, according to the report.
The sides also signed 24 export contracts worth a combined $44 million, the AP reported, citing South Korea’s Ministry of Trade, Industry and Resources. During Lee’s visit, Chinese media reported that South Korea overtook Japan as the leading destination for outbound flights from China’s mainland over the New Year’s holiday, while China continued discouraging travel to Japan, saying Japanese leaders’ Taiwan comments created “significant risks to the personal safety and lives of Chinese citizens in Japan.”