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On August 2, according to the China Trade Relief Information Network, the Foreign Trade Secretariat of the Ministry of Development, Industry, Trade and Services of Brazil issued "Notice No. 39 of August 1, 2024" (hereinafter referred to as the "Notice"), stating that in response to the application submitted by the Brazilian company Prysmian Cabos e Sistemas do Brasil S/A on April 30, 2024, an anti-dumping investigation was initiated on optical fiber originating in China.

According to the information in the Notice, Prysmian Brazil and Furukawa Electric Latam S/A of Japan are the fiber optic manufacturers involved in the investigation. The petition was submitted by a representative of Prysmian and accompanied by a letter of support from Furukawa Electric Latam S/A. The investigation used data from January to December 2023 to verify whether there is any sign of dumping in the export of fiber optics originating from China to Brazil.

Notice No. 39 of August 1, 2024 Foreign Trade Secretariat of the Ministry of Development, Industry, Trade and Services of Brazil

At the beginning of the 21st century, most of the profits from producing one kilometer of optical fiber in China were taken away by foreign manufacturers. At that time, the price of optical fiber in China reached 2,000 yuan per kilometer. Subsequently, the country gave strong support to the optical fiber industry, not only opening up related technologies in research institutes, but also providing support in the field of funds. Several domestic optical fiber manufacturers then increased their investment in the research and development of optical fiber preforms. Only then did Chinese optical fiber completely break through the bottleneck of foreign countries, and the current price per kilometer is 30 yuan.

In the past decade, my country's optical fiber and cable industry has strengthened research and development and is transforming from a major optical fiber and cable producing country to a strong one. my country's optical fiber market has achieved great development, built the world's largest optical fiber network, and optical fiber companies have formed a complete industrial chain.

In 2021, Brazil, as the second largest region for my country's optical fiber exports, accounted for 10.9% of my country's optical fiber exports. Previously, according to Brazilian media, Chinese products have greatly met the needs of the Brazilian optical fiber market.

However, Prysmian believes that the fiber optic industry in China has been identified as a priority area and is given tax incentives and preferential loans, so it cannot be considered as "market economy conditions" and claims that my country's fiber optic products are dumped at low prices.

Prysmian also mentioned several leading Chinese companies in the industry in its application, including Changfei Company,Zhongtian Technology、FiberHome Communications, Hengtong Company, and listed the subsidies and other financial support they have received in recent years.

In 2023, my country's exports of optical fiber preforms amounted to 1.12 billion yuan, a year-on-year increase of approximately 24.60%; optical fiber exports amounted to 4.83 billion yuan, a year-on-year decrease of approximately 3.41%; and optical cable exports amounted to 16.47 billion yuan, a year-on-year decrease of approximately 9.39%.

Industry insiders said that the reduction in domestic and foreign orders was an important reason for the decrease in exports of optical fiber and cable products last year. In addition, overseas anti-dumping investigations have restricted exports to a certain extent. Another major reason is the increase in localized production of optical fiber and cable overseas, including local domestic companies and Chinese companies that have built factories overseas. This situation has led to a decline in exports.

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