Example below cannot compile due to error "cyclic inheritance involving test.A".

-------Example----------
//file A.java
package test;

class A extends C {
    static class B {}
}

//file C.java
package test;

import static test.A.B;

class C extends B {}
------------------------------

Same error for static-import-on-demand clause and for various combinations of classes and interfaces.
This behaviour is expected - C depends on A because B is nested in A. But specification says nothing about dependencies via static import.

This is what specification says about dependencies:

Section 8.1.4 (http://docs.oracle.com/javase/specs/jls/se8/html/jls-8.html#jls-8.1.4):
"A class C directly depends on a type T if T is mentioned in the extends or implements clause of C either as a superclass or superinterface, or as a qualifier of a superclass or superinterface name.

A class C depends on a reference type T if any of the following is true:
 C directly depends on T.
 C directly depends on an interface I that depends (§9.1.3) on T.
 C directly depends on a class D that depends on T (using this definition recursively)."

Section 9.1.3 (http://docs.oracle.com/javase/specs/jls/se8/html/jls-9.html#jls-9.1.3):
"An interface I directly depends on a type T if T is mentioned in the extends clause of I either as a superinterface or as a qualifier within a superinterface name.

An interface I depends on a reference type T if any of the following is true:
 I directly depends on T.
 I directly depends on a class C that depends on T (§8.1.5).
 I directly depends on an interface J that depends on T (using this definition recursively).

It is a compile-time error if an interface depends on itself."

Possible solution would be to add cases with static import in "directly depends..." parts (similarly to qualifier cases).