Chinese authorities ruled in early January that optical fiber from Japan, South Korea, and the United States was sold at less than fair value, levying anti-dumping duties of 7% to 46% on standard single-mode fiber. The duties are slated to remain in effect for the next five years. Corning, however, has been exempted from the ruling.

 

Effective January 1st, companies that will be impacted by the ruling include OFS Fitel of the US, which along with other unnamed US suppliers will be charged a duty of 46%. LG Cable of Korea and will pay 7%, while Optomagic and Kyungki-do will be assessed 13%. Japanese and other Korean makers will be charged at the 46% rate. 

 

The government began investigating the matter in mid-2003, when Yangtze Optical Fiber of Wuhan and Jiangsu Fasten Photonics filed a complaint with the Commerce Ministry. The domestic suppliers charged that foreign companies, facing limp demand at home, were dumping fiber at unfair prices in China, "substantially" hurting their businesses. The recent decision upheld a preliminary ruling announced in June 2004.

 

According to the ministry, China imported US$110 million in optical fiber from the US, Japan, and Korea in 2002. The standard single-mode fiber currently being targeted accounts for approximately 70% of optical fiber sales in China. Such fiber is primarily used for long-distance communications and TV cable.

 

Corning has been spared from anti-dumping levies, and the 16% surcharge in effect since June 2004 has been lifted. Authorities deemed that its exports of dispersion-unshifted single-mode optical fiber to the Chinese market was 1.52% lower than prices in Corning's home market, placing it below the threshold warranting anti-dumping duties. 

 

Long one of the world's top importers, China did not levy anti-dumping charges until 1997. 34 anti-dumping charges were enacted by 2004, and the government is taking more aggressive steps in this area. In June 2004, the Commerce Ministry started a website to offer timely information and advice to domestic players, familiarizing Chinese makers with national trade policies and common international practices.