The Ministry of Commerce (MOFCOM) Photo: VCG

China began to impose anti-dumping duties on optical fiber products imported from the US on Thursday, as the country's first anti-circumvention investigation found that US exporters' practices circumvented China's existing anti-dumping measures. An official of the Ministry of Commerce (MOFCOM) said the investigation aligns with China's legal provisions and WTO rules, reiterating the need to ensure the effectiveness of existing trade remedy measures and protect the legitimate rights and interests of domestic industries.

The practice of US fiber optic manufacturers and exporters altering trade patterns to export certain types of cut-off shifted single-mode optical fiber to China lacks commercial justification, undermines the effectiveness of existing anti-dumping measures, and constitutes circumvention of China's anti-dumping measures on related US optical fiber products, according to a statement released on the MOFCOM website late on Wednesday.

According to the findings of the investigation, the Customs Tariff Commission of the State Council decided, in line with relevant Chinese laws, to impose anti-dumping duties on certain cut-off shifted single-mode optical fiber products starting on Thursday. US exporters will face anti-dumping duties ranging from 33.3 percent to 78.2 percent, according to the MOFCOM.

The anti-circumvention measures on certain cut-off shifted single-mode optical fiber products originating in the US shall be implemented from Thursday to April 21, 2028, it said.

This is the first anti-circumvention investigation in China, a ministry spokesperson said on Thursday, noting that the ministry initiated the investigation after receiving an application from a domestic firm.

As the case was launched, the ministry conducted investigations in line with laws and regulations, ensuring transparent procedures and full protection of the rights of all stakeholders. The findings have shown that US exporters' selling of the product to China circumvented China's anti-dumping measures on dispersion unshifted single-mode optical fiber, the spokesperson said in a statement on the ministry's website.

"The initiation of this investigation aligns with China's legal provisions and WTO rules. It is intended to maintain the authority and effectiveness of current trade remedy measures," an official of the MOFCOM Trade Remedy and Investigation Bureau said on Thursday.

"China has always been prudent and restrained in implementing trade remedy measures, and remains committed to safeguarding fairness and free trade. At the same time, we will take necessary steps to ensure the effectiveness of existing trade remedy measures and protect the legitimate rights and interests of domestic industries," the official stressed.

US companies' large-volume exports of certain cut-off shifted single-mode optical fiber products to China at low prices harm the development of China's related industry, and the MOFCOM's move underscores the Chinese government's firm resolve in ensuring a fair competition environment for Chinese companies and maintaining their interests, Bao Jianyun, dean and professor of the Department of International Politics, School of International studies at Renmin University of China, told the Global Times on Thursday.

"As the first anti-circumvention investigation in China, the move will enrich China's trade remedy investigation practices and make its measures more effective," Bao said.

China started to impose anti-dumping duties on imported dispersion unshifted single-mode optical fibers from the EU and the US from April 2011, according to the Xinhua News Agency.

The MOFCOM said on April 21, 2023, that China would continue to levy anti-dumping duties on imports of dispersion unshifted single-mode optical fibers from the EU and the US for another five years.

In February, a Chinese company applied for an anti-circumvention investigation. According to the applicant, US optical fiber producers or exporters have exploited the high compatibility, similarity, and interchangeability of related optical fiber products to evade existing anti-dumping measures by altering customs codes during declarations. As a result, the domestic industry has suffered severe damage, and the effectiveness of existing anti-dumping measures has been severely undermined, Xinhua reported.

To implement the anti-circumvention measures, China's General Administration of Customs said late on Wednesday that importers or their agents declaring the import of certain cut-off shifted single-mode optical fiber products must use product code 90011000.01, effective Thursday.

The optical fiber affected is widely used for high-speed and long-distance transmission in the telecommunications industry.