European Commission investigates dumping of fiber optic cables by China on EU market

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The European Commission has started an investigation into the possible offering of fiber optic cables on the European market by Chinese companies at artificially low prices. Imports are said to have risen sharply in recent years.

The European Commission has decided to investigate the potential dumping of Chinese fiber optic cables after it received a complaint on August 10 from Europacable, a partnership of European cable manufacturers. Dumping occurs when foreign companies sell products at artificially low prices on the European market.

Europacable argues that there is no level playing field in the fiber optic cable market. The organization points to the presence of the materials for the cables in China, the lower wages in the country and the fact that Chinese companies are partly or partly owned by the Chinese government. These factors would disrupt the market.

“Europacable members are committed to maintaining and, where necessary, restoring fair conditions for competition across the range of cable products they represent in the European market,” said the organization, which accounts for more than a quarter of EU production. represents fiber optic cables.

However, the research only concerns single-mode fiber optic cables. With this type of fiber optic cables, light passes straight through the fiber cables. Variants in which the fiber optic cables are individually provided with connectors and subsea cables are not covered by the study.

According to Europacable, 1.2 million kilometers of fiber optic cable was sold last year. Of that, 15 to 20 percent would come from China. Chinese imports are said to have increased by 150 percent from 2016 to 2019. Reuters cites the Italian Prysmian Group and the French Nexans and Acome as major European manufacturers and Yangtze Optical, Hengtong Group, Fiberhome and Futong as major Chinese competitors.

The European Commission previously decided to impose minimum prices and import duties on Chinese solar panels, after an investigation showed that they were dumped on the European market.

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