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China Imposes Anti-Dumping Measures On Indian Fiber Optic Imports

May 19, 2014

Indian companies are dumping single-mode optical fiber prices in China, the Chinese Ministry of Commerce said last week, affirming that it will impose anti-dumping measures against fiber optic imports from that country.

From May 14, importers of India-made single-mode optical fibers in China would have to pay cash deposits to customs at a rate that ranges from 13.7% to 51% of the value of the imported goods. Companies whose production Chinese authorities found to be dumping local manufacturers' prices include Sterlite Technologies Limited, Birla Furukawa Fibre Optics Limited, Corning Technologies India Private Limited, Aksh Optifibre Limited and Finolex Cables Limited among others.

Chinese authorities started an investigation into Indian fiber optic imports in August 2013, in response to a petition filed by the domestic industry. The investigation was meant to determine whether Indian companies have sold single-mode optical fibers at an artificially low price in China and if this has caused damage to Chinese businesses, Xinhua reports.

And, according to the results of the investigation, it has had a negative impact. The Ministry of Commerce has concluded that dumping activities were damaging the interests of Chinese optical fiber producers and that there was a causal link between the dumping and the damage caused.

Single-mode optical fibers are typically used to make telecommunications equipment, designed to support higher bandwidth over longer distances. Such cables have a small diametral core that allows only one mode of light to propagate, thus decreasing the number of reflections that the light passing through it makes. This lowers attenuation and allows the signal to travel faster and further.

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