China has introduced new tariffs on certain optical fibre imports from the United States. These tariffs, which function like extra taxes, will come into force on September 4. The decision was announced by the commerce ministry shortly before midnight on Wednesday, drawing attention because of its timing and the size of the duties.
The move targets a very specific product called cut-off shifted single-mode optical fibre. This fibre is not the everyday cable used in homes or offices. Instead, it is designed for long-haul telecommunication networks, including underwater cables and systems built in remote or challenging areas where strong, reliable connections are needed. By focusing on this type of fibre, China is directly addressing a niche but vital part of modern communications.
According to the commerce ministry, the decision was taken because some American companies were working around existing rules. China already had anti-dumping measures in place against a different type of fibre known as dispersion unshifted single-mode optical fibre. However, officials found that certain exporters were switching to the cut-off shifted version to continue selling to the Chinese market without paying the earlier duties. To close this loophole, the new tariffs have been introduced as anti-circumvention tariffs.
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Tariffs Reach as High as 78.2 Percent
The new duties are significant in size. Three American companies have been singled out with separate duty rates. Corning will face a tariff of 37.9 percent, OFS-Felite will pay 33.3 percent, and Drake Communications has been assigned the steepest duty of 78.2 percent. For all other U.S. producers of the targeted fibre, the highest rate of 78.2 percent will also apply.
These percentages mean that if a company exports $1 million worth of the affected fibre to China, it could now face tariffs of hundreds of thousands of dollars. The financial impact is therefore considerable, especially for firms heavily involved in international trade with China.
Customs data revealed that in 2024, China bought just over $140 million worth of the targeted fibre. This figure shows the importance of the product in trade relations between the two countries. However, the commerce ministry explained that not all items under the same customs code will be affected. The duties will apply only to the precise product type identified in the investigation, ensuring that other related imports are not automatically penalized.
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The tariffs are not short-term measures. The ministry has made it clear they will remain in place until April 2028. That sets a fixed period of several years during which the duties will apply, providing clarity for both exporters and importers on how long the rules will last.
Why China Took This Step
The decision followed an investigation that started on March 4, 2024. During the inquiry, officials examined trade data and the methods being used by exporters. They concluded that American producers were indeed finding ways to bypass the earlier anti-dumping duties. By shipping cut-off shifted single-mode fibre instead of the fibre already covered by tariffs, these companies were continuing to sell into the Chinese market while avoiding the penalties.
By introducing the new measures, China aims to ensure its trade rules are respected. Anti-dumping duties are designed to protect domestic markets from products sold at prices lower than their fair value. When exporters attempt to sidestep these duties, countries often respond with stricter regulations, as has now happened with these new tariffs.
The product at the center of this dispute—optical fibre—plays a vital role in the modern world. It forms the backbone of high-speed communication networks that carry data across continents and under oceans. Because of its importance, trade policies surrounding optical fibre often attract significant attention.
China’s move underscores how closely it monitors imports in this critical sector. By enforcing these duties, the country has signaled that it intends to maintain firm control over trade practices linked to such key technologies.
