Brazilian Optical Fibers Manufacturers Report Unfair Chinese Competition to Government

 

Three Brazilian manufacturers of optical fibers —Cablena, Prysmian, and Furukawa— have reported to the Brazilian government abuses of China’s encouragement policy in the exporting of the input to Brazil, which reinforces suspicions of dumping.

According to the companies, the alleged practice occurred at least between July 2021 and June 2022 thanks to subsidies and financing in China, which led to a drop in imported prices to levels below those practiced internally —the so-called dumping.

Last week, the Ministry of Development, Industry, and Commerce instituted a preliminary procedure to verify the existence of subsidies from China for optical fibers, local newspaper Folha de São Paulo reported.

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The process takes a minimum of six months, according to the same source. In the document, the Department of Trade Defense says that these alleged benefits generate distortion in the economy in the long term, requiring compensatory actions.

This is the second procedure opened by the Brazilian government in less than two weeks against China regarding optical fiber imports. If dumping practices are proven, there will be sanctions.

 

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