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India intends to implement anti-dumping against global fiber companies

Oct. 08, 2019

India intends to implement anti-dumping against global fiber companies

On September 23, the Ministry of Commerce and Industry of India issued a notice stating that the joint application submitted by the Indian company Sterlite Technologies Limited and Birla Furukawa Fibre Opitcs Private Limited Singular Mode Optical Fibre initiated safeguards investigation. The dumping investigation period is from 2016 to 2017 and 2017 to June 2019. Imported single-mode fiber products involve the above series of products such as G.652/G.653/G.654/G.655/G.656/G.657. Stakeholders shall submit their comments to the Indian investigation agency within 30 days from the date of the announcement.

It is understood that the above two fiber companies believe that the import of single-mode fiber has surged, and the price is too low may cause damage to the domestic fiber market in India, which is not conducive to long-term development. In order to protect domestic enterprises, two fiber companies in India have called for anti-dumping duties on foreign fiber industry companies.

India, as an important overseas market for China's fiber optic cable industry to enter Southeast Asia, its important position is self-evident. If the results of the investigation period are released, the foreign fiber optic cable industry enterprises do have bad competition behaviors such as dumping behavior and low prices. The Indian market, which is operated by China's fiber optic cable industry for many years, will have to face major tests or suffer certain losses. The reason can be explained in the following two aspects:

First, after more than 40 years of development, China has grown into the world's largest fiber optic cable production and sales country. However, as China's FTTH and 4G construction tend to be saturated, the market supply exceeds demand and other factors cause some fiber optic cable industry enterprises to survive. Do not sell products at too low a price. From 2019, China Mobile's 10 billion yuan ordinary optical cable collection price to China Telecom's 54.1 million core outdoor + indoor optical cable collection price to reproduce the "Waterloo" misery, all of which indicate that the domestic fiber optic cable market price has fallen into the life and death of industrial enterprises. line. Prices have "fallen" and some powerful companies have gone overseas to find a way out. The Southeast Asian markets such as India, the Philippines, and Vietnam, as well as the locations along the “Belt and Road” have become important places for them to enter overseas.

Second, in the downturn of the domestic market, domestic fiber optic cable industry companies have entered the overseas market in a big way, and it is easy to bring panic to foreign local enterprises. One is to worry about the price factor, will it lead to the product being too low price again. With more porridge and less prices, foreign local companies are bound to fall into operational difficulties, or may go bankrupt or have to merge and reorganize. Second, in order to maintain a good balance in the market, foreign local companies are bound to fight back and say no to the bad market competition. In order to protect the interests of domestic enterprises, foreign governments will inevitably increase punishment for bad competition, or impose high anti-dumping duties, or set more thresholds to avoid risks.

Combined with the above two points analysis, if India opens the anti-dumping of optical fiber, China's fiber optic cable industry enterprises will have to face the double bad situation of the domestic market downturn and the foreign market being hit, the industry winter will be even worse.

It should be pointed out that the market is owned by the common participants, maintaining a good market ecological environment, and resisting the low price of products is the common responsibility of the industry enterprises. The fiber optic cable industry has to change from price-based to high-quality, high-service and other recyclable development models. The overseas market is undoubtedly an important opportunity for Chinese industrial enterprises to go global. In the face of good opportunities, it is necessary to carry out rational competition, complement each other's advantages, and jointly expand the market cake with domestic and foreign enterprises. This is the basic idea of long-term operation.