China added new tariffs on more U.S. optical fiber after a six-month probe found U.S. suppliers tried to dodge earlier penalties. The tariffs took effect Thursday Beijing time and cover “certain cut-off shifted single-mode optical fiber” from the United States, the Ministry of Commerce said. Rates run from 33.3% to 78.2%.
The ministry named several firms and their levies. Corning Inc. at 37.9%, OFS Fitel LLC at 33.3%, and Draka Communications Americas Inc. at 78.2%. Officials said the anti-circumvention inquiry concluded that US producers and exporters changed trading methods to avoid anti-dumping rules already on the books.
In a statement, a ministry spokesperson said the procedures were open and transparent and that the rights and interests of all stakeholders were fully protected. The ministry added that this was China’s first anti-circumvention investigation.
Shares of Corning swung on the headlines. The stock, up nearly 2% in New York trading on Wednesday, fell as much as 3% before recovering to trade slightly higher.
Based on the findings, the ministry ruled that altering trading practices to bypass existing duties amounts to evasion of China’s anti-dumping regime. It said the new levies match the tariff rates applied since April 2023 on US dispersion unshifted single-mode optical fiber. The duties are scheduled to last until April 21, 2028, the same expiry as the 2023 measures.
Tariffs seen as retaliation for U.S. tech curbs
The decision to impose tariffs this week comes soon after a new Trump administration initiative to curb China’s chipmaking capacity, as reported by Cryptopolitan.
Recently, the United States rescinded Taiwan Semiconductor Manufacturing Co.’s permission to ship essential equipment without restriction to its plant in Nanjing, China. American officials told TSMC they would end the company’s validated end user, or VEU, status for that site.
U.S. authorities made comparable changes for Chinese facilities run by Samsung Electronics Co. and SK Hynix Inc., with those waivers due to lapse in roughly four months.
Neo Wang, lead China macro analyst at Evercore ISI, said the decision appears to respond to the United States, adding it may be a “reminder that Washington should refrain from actions hurting mutual trust and spoiling the atmosphere for trade talks.”
Companies affected by the levy can challenge the decision. The ministry said firms may apply for a review or file lawsuits in court.
Chip suppliers now need U.S. approval for each shipment to China
Now, suppliers to TSMC, Samsung, and SK Hynix must get approval for each shipment of chipmaking tools covered by U.S. export rules, instead of using the old blanket OK under VEU.
The revocation adds new hurdles to the China operations of some of the most important companies in the semiconductor sector, hailing from two chipmaking powerhouses that are also US allies.
U.S. officials have said they plan to grant the licenses required to keep those facilities running, but the change raises questions about how long it will take to obtain the approvals.
In a statement, Taiwan’s Ministry of Economic Affairs said that revoking the waiver would affect the predictability of the Nanjing plant’s operations. Industry watchers said firms will monitor processing times and license conditions in the months ahead. Any delay could disrupt maintenance and upgrades at older-generation lines.
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Source: https://www.cryptopolitan.com/china-us-fiber-trade-retaliation/
