The Ministry of Commerce (MOFCOM) announced anti-dumping import duties would be imposed on certain optical fibres made in the United States, Japan and Republic of Korea (ROK) starting four days ago.

It is a fresh move by the Chinese Government to better protect the nation's industries under the World Trade Organization (WTO) regime.

According to a statement from the ministry, punitive tariffs ranging from 7 to 46 per cent will affect imports of dispersion unshifted single-mode optical fibres from the three countries in a five-year period starting from January 1, 2005.

The fibres are largely used for long-distance communications and TV cables. These particular fibres account for 70 per cent of all optical fibres.

Corning, a US company, was found dumping fibres at a margin of only 1.51 per cent, and was exempted from the punitive tariffs according to Chinese law, said the ministry.

The company came under investigation after Wuhan-based Yangtze Optical Fibre & Cable Co Ltd and Jiangsu Fasten Photonics Co Ltd petitioned the ministry in 2003, saying foreign companies were dumping products below the market price which "substantially" hurt their businesses.

MOFCOM, China's trade watchdog, officially launched the probe in July 2003, and extended the investigation by six months in June of last year.

The two Chinese companies were not available for comment, due to the New Year holidays.

In 2002, China imported US$110 million of optical fibres from the United States, Japan and the ROK, according to the ministry.

Scholars say China is learning to better protect itself by using trade safeguards enshrined by the WTO.

"We should be quick to protect domestic industries and companies from being squeezed by unfair overseas competition," said Fan Ying, a professor at China Foreign Affairs University in Beijing.

"For domestic companies, small and medium-sized enterprises in particular, they must know it is their right to shield themselves," she said. "And industrial associations and chambers of commerce should give a hand to these enterprises when necessary."

China, the world's third largest importer, did not bring any anti-dumping charges until 1997. By 2004, there were 34 such charges and one safeguard measure.

China is very cautious in launching anti-dumping charges, Wang Qinhua, director of the Bureau of Industry Injury Investigation under MOFCOM, was quoted by China New Agency as saying in November.

But officials have vowed to step up efforts to better utilize legal means to ensure Chinese businesses operate on a level playing field.

Last June, the ministry opened a website to offer timely information and advice to Chinese firms. It also aims to familiarize them with trade policies and international practices.

And the ministry, along with some industry associations, is closely overseeing the trade situation to monitor whether industries are hurt by unfair foreign competitors, Wang said.

China has become the world's largest victim of anti-dumping rulings.

From January to September 2004, China was the target of 46 anti-dumping, anti-subsidy and protection measures as well as special safeguard investigations from 12 countries and regions.

That's a 4.5 per cent increase year-on-year.

Source: China Daily