On February 25, 2025, the Foreign Trade Secretariat of the Brazilian Ministry of Development, Industry, Trade and Services issued a preliminary anti-dumping determination on single-mode optical fibers originating in China, but decided not to implement temporary anti-dumping measures and extended the investigation period by up to 8 months until February 2, 2026. This decision marks a new stage in the China Pakistan fiber optic trade friction and also leaves room for further negotiations between the two sides.
Background investigation and preliminary findings
This investigation stems from the application of Brazilian company Prysmian Cabos e Sistemas do Brasil S/A in April 2024, accusing Chinese fiber optic products of being dumped into the Brazilian market at low prices under “non market economy conditions”. According to official data from Brazil, the dumping investigation period is from January to December 2023, and the injury investigation period covers from 2019 to 2023. The product involved in the case is a single-mode optical fiber with a core diameter of less than 11 microns, and it is related to the Southern Common Market tax number 9001.10.11.
The preliminary ruling determined that there was dumping of Chinese fiber optic cables, but the Brazilian government stated that due to the need to further verify the market impact and the completeness of evidence, it has decided not to impose temporary tariffs temporarily. The announcement states that the extension of the investigation aims to ensure procedural fairness and assess whether there is an “emergency situation” that requires temporary measures.
The Competitiveness and Controversy of China’s Fiber Optic Industry
The Chinese fiber optic industry has become a global market leader through technological breakthroughs and large-scale production. At the beginning of the 21st century, China’s fiber optic prices reached as high as 2000 yuan per kilometer, relying on imported technology; Now, with the support of national policies, the price has dropped to about 30 yuan and the export volume has significantly increased. Brazil was once the second largest export market for Chinese fiber optics, accounting for 10.9% of China’s export share in 2021.
Prysmian accused Chinese companies of gaining unfair competitive advantages through government subsidies, tax incentives, and other means in their application, citing the subsidy situation of top Chinese companies such as Changfei Fiber, Zhongtian Technology, FiberHome Communications, and Hengtong Optoelectronics. Industry insiders point out that the low price advantage of Chinese fiber optic products comes from technological progress and industry chain integration, rather than dumping.
Potential impact on China Pakistan trade
If the final ruling on dumping is upheld, Brazil may impose high anti-dumping duties on Chinese optical fibers, directly impacting the market share of Chinese companies in Brazil. Meanwhile, local fiber optic companies in Brazil may benefit in the short term, but may face the risk of rising supply chain costs in the long term, which could affect their communication infrastructure construction.
The Chinese Ministry of Commerce has repeatedly emphasized its opposition to the abuse of trade remedy measures and called for resolving differences through dialogue and consultation. Brazil will not implement temporary measures this time, providing a negotiation window for both sides. Analysis suggests that Brazil may seek a balance between protecting local industries and avoiding damage to its economic and trade relations with China during the extended investigation period.
Future prospects
The preliminary ruling reflects Brazil’s cautious attitude towards trade protection and market opening. As the investigation extends, Chinese companies need to actively respond to the lawsuit and provide evidence to prove compliance; Meanwhile, China and Pakistan may resolve their differences through bilateral consultations or WTO mechanisms. The direction of the event will have a demonstrative effect on the global fiber optic supply chain pattern and emerging market trade rules.
