China Hits US Optical-Fiber Imports With Anti-Dumping Tariffs

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China Hits US Optical-Fiber Imports With Anti-Dumping Tariffs
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(Bloomberg) -- China started imposing levies on additional US optical fiber imports after a six-month investigation found that American companies circumvented the country’s anti-dumping measures.

The duties, ranging from 33.3% to 78.2%, took effect Thursday Beijing time on “certain cut-off shifted single-mode optical fiber” from the US, according to a statement from the Chinese Ministry of Commerce.

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Among the companies subject to the new duties, Corning Inc. now faces a 37.9% levy, OFS Fitel LLC is at 33.3% and Draka Communications Americas Inc. has a 78.2% duty.

The probe was the first anti-circumvention investigation China has ever initiated, the Mofcom said in a separate statement published Thursday.

“The procedures of the investigation were open and transparent, and the rights and interests of all stakeholders were fully protected,” a spokesperson for the ministry said.

Corning shares, which had been up nearly 2% in New York trading Wednesday, tumbled as much as 3% before clawing back those losses to trade marginally higher.

Citing its investigation findings, the Chinese ministry ruled that US fiber makers and exporters changed their trading methods to bypass existing anti-dumping duties and that counted as evasion of the country’s anti-dumping rules.

The levies are the same as those that China has been imposing on US dispersion unshifted single-mode optical fiber since April 2023. The new duties are set to last until April 21, 2028 — the same date as for the 2023 measures, the ministry added.

While Beijing’s investigation was launched back in March, the move to impose the tariffs this week comes swiftly on the heels of a fresh Trump administration initiative to curb China’s chipmaking capacity.

“The decision appears to be a response to the US pulling its waiver for China shipments of chip supplies containing US technology, said Neo Wang, lead China macro analyst at Evercore ISI. China may be intending it as a “reminder that Washington should refrain from actions hurting mutual trust and spoiling the atmosphere for trade talks,” he said.

China’s ministry also said in its statement that companies affected by the new levy can dispute the ruling by applying for a review or filing lawsuits in a court of law.

--With assistance from Jacob Gu and Fran Wang.

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(Updates with commerce ministry spokesperson’s comment.)

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