Beijing says China’s first-ever anti-circumvention investigation found US firms mislabelled a specific optical fibre to dodge duties, triggering anti-dumping tariffs
China has slapped American fibre-optic firms with anti-dumping tariffs – a move announced hours after the US Treasury imposed sanctions on a Guangzhou-based chemical firm, over fentanyl claims.
The duties, ranging from 33.3 to 78.2 per cent, went into immediate effect and are to remain in place until April 2028, the Ministry of Commerce said on Thursday in an online statement.
Specifically, OFS Fitel faces a 33.3 per cent tariff, Corning a 37.9 per cent levy, and Draka Communications Americas, along with other unidentified US firms, were hit with a 78.2 per cent tariff.
“The ministry ruled that US exporters altered trade patterns without commercial justification to ship the optical fibre 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, according to the ministry. Such an investigation assesses whether trade practices have been altered to avoid liability for duties.
In a separate statement on Thursday, 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 rules.
Also on Thursday, Chinese customs authorities revealed the specific product code – 90011000.01 – for the optical fibre being subjected to additional anti-dumping tariffs.
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 on Wednesday, representatives of the company were “directly involved in coordinating the shipments” of synthetic opioids, and other illicit drugs and cutting agents, to the US.
All US-based assets of the company and its representatives have been frozen, and the FBI on Wednesday announced a federal indictment against the Guangdong firm, its two representatives, and other associates for allegedly helping ship illicit drugs and cutting agents.
“China-based chemical-manufacturing companies remain the primary source of fentanyl precursor chemicals and other illicit opioids entering the United States,” the statement said, alleging that Guangzhou Tengyue “pushes poison for profit”.
Despite three rounds of talks between top trade officials from China and the US this year, the two countries have yet to address the fentanyl issue.
Chinese products are subject to an additional 30 per cent universal tariff – on top of the previous Section 301 tariffs – to enter the US, including the 20 per cent tariff that US President Donald Trump imposed in the first quarter of the year while claiming that Beijing had not done enough to stop the fentanyl flow into the US.