China has slapped American fibre-optic firms with anti-dumping tariffs, hours after the U.S. Treasury imposed sanctions on a Guangzhou-based chemical firm over fentanyl claims. The duties, ranging from 33.3% to 78.2%, went into immediate effect and are to remain in place until April 2028, the Ministry of Commerce (MOFCOM) said in an online statement. Specifically, OFS Fitel faces a 33.3% tariff, Corning a 37.9% levy, and Draka Communications Americas, along with other unidentified U.S. firms, were hit with a 78.2% tariff. China has imposed anti-dumping tariffs since April 2023 on a type of U.S. fiber used in high-speed optical transmission and data center interconnections. But a six-month probe that began in March found that U.S. exporters were dodging the duties by labelling it as another kind of fiber with similar uses but slightly different technical specifications. “The Ministry ruled that U.S. exporters altered trade patterns without commercial justification to ship the optical fiber to China, undermining existing anti-dumping duties,” the statement said.
Launched at the request of Chinese companies, the probe marked China’s first-ever anti-circumvention investigation, which assesses whether trade practices have been altered to avoid liability for duties. The Ministry said: “China has been prudent in applying trade-remedy measures while upholding fair and free trade. But at the same time, we will take necessary steps to ensure their effectiveness and protect domestic industries.” It also stressed that the investigation was conducted in accordance with Chinese law and World Trade Organization (WTO) rules.
Beijing’s move came on the heels of the U.S. Treasury’s sanctions on Guangzhou Tengyue Chemical and two of its representatives, coupled with allegations of selling synthetic opioids to Americans. Despite a recent easing of trade tensions between the world’s two largest economies, the issue regarding fentanyl – a potent, synthetic opioid drug – remains a major point of contention. According to the Treasury’s statement, representatives of the company were “directly involved in coordinating the shipments” of synthetic opioids, and other illicit drugs and cutting agents, to the U.S.
All U.S.-based assets of the company and its representatives have been frozen, and the FBI announced a federal indictment against the Guangdong firm, its two representatives, and other associates for allegedly helping ship illicit drugs and cutting agents. Despite three rounds of talks between top trade officials from China and the U.S. this year, the two countries have yet to address the fentanyl issue, the South China Morning Post reports.
