AsianFin -- The Chinese govenment on Wednesday decided to expand its anti-dumping tariffs on to more U.S. optical fiber imports.
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China's Ministry of Commerce (MOFCOM) announced its decision, imposing anti-circumvention measures on certain optical fiber imports originating in the United States, effective from Thursday.The decision follows China's first anti-circumvention investigation, which was launched on March 4 after a request from a domestic company, the state news agency Xinhua cited a spokesperson for the ministry.
The probe was conducted in line with relevant laws and regulations -- with open and transparent procedures that fully safeguarded the rights of all parties, according to the spokesperson.
Through the investigation, Chinese authorities found that U.S. exporters circumvented China's anti-dumping measures concerning dispersion unshifted single-mode optical fiber by shipping cut-off shifted single-mode optical fiber products to the Chinese market.
As a result, current anti-dumping duties on dispersion unshifted single-mode optical fiber will now also be applied to cut-off shifted single-mode optical fiber products, according to the ministry.
Corning Incorporated and OFS Fitel, LLC will be subject to the anti-dumping tariff rate of 37.9% and 33.3%, respectively, and Draka Communications Americas, Inc. and other affected U.S. companies will face a 78.2% duty.
China’s new anti-dumping duties came as the Trump administration is further tightening semiconductor export curbs on China.
The U.S. Commerce Department on Friday said the authorization for SK Hynix and Samsung Electronics' China plants will be revoked effective December 31. The move effectively removed two South Korean companies both running memory chip facilities in China from the Validated End-User (VEU) program.
Describing the VEU as a loophole, the Bureau of Industry and Security (BIS) under the Commerce Department said in a statement it closed a Biden-era loophole that allowed a handful of foreign companies to export semiconductor manufacturing equipment and technology to China license-free.
“Former VEU participants will have 120 days following publication of the rule in the Federal Register to apply for and obtain export licenses,”said the BIS. “Going forward, BIS intends to grant export license applications to allow former VEU participants to operate their existing fabs in China. However, BIS does not intend to grant licenses to expand capacity or upgrade technology at fabs in China.”
In 2023, the Biden Administration expanded the VEU program to allow a select group of foreign semiconductor manufacturers to export most U.S.-origin goods, software, and technology license-free to manufacture semiconductors in China. The Commerce Department estimated revocation of SK Hynix and Samsung’s VEU privileges would lead to an additional 1,000 license applications a year.
Taiwan Semiconductor Manufacturing Co.’s VEU authorization to freely ship equipment to its manufacturing plant in Nanjing, China without requiring separate U.S. approval, was also revoked effective December 31, the company on Tuesday confirmed.
“While we are evaluating the situation and taking appropriate measures, including communicating with the U.S. government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing,” TSMC said.
China’s Ministry of Commerce on Saturday said it opposed the U.S. decision to revoke the VEU authorization for SK Hynix and Samsung’s three semiconductor companies operating in China, urging Washington to immediately correct its wrongdoings.
The U.S. move, driven by self-interest, has turned export controls into a tool, and will cause a serious negative impact on the stability of global semiconductor industrial and supply chains, said a spokesperson for the ministry, voicing opposition to the U.S. decision.
China called on the United States to immediately correct its wrongdoings and safeguard the security and stability of global industrial and supply chains. China will take necessary measures to firmly safeguard the legitimate rights and interests of its enterprises, the spokesperson said.
