China extends anti-dumping tariffs on S. Korean optical fibers

SEOUL, Jan. 12 (Yonhap) -- China's commerce ministry has extended its punitive duties on South Korean optical fibers, a trade agency here said Thursday, in what could be viewed as Beijing's latest move to retaliate against Seoul for its decision to install a U.S. missile defense system here.

China's Ministry of Commerce has said its anti-dumping duties imposed on South Korea-made optical fibers will be extended by five years starting from Jan. 1, according to South Korea's state-run Korea Trade-Investment Promotion Agency (KOTRA).

Optical fibers are used to create fiber cables that are widely used in the telecommunications and computer networking industries.

China began imposing punitive duties of between 7 percent to 46 percent on South Korean optical fibers in 2005.

Under the latest extension, shipments from South Korea's LS Cable & System will be subject to a 9.1 percent tariff rate, and products from Taihan Fiberoptics to 7.9 percent, according to KOTRA. All other South Korean products will be subject to a 46 percent tariff rate for the next five years.

"China appears to have decided a termination of the anti-dumping duties against South Korean products may lead to damage to its local industry," a market observer said.

Still, many believe the latest extension of the anti-dumping tariffs may have been part of Beijing's attempt to express its anger towards Seoul for the latter's move to install a U.S. missile defense system, known as the Terminal High Altitude Area Defense or THAAD system.

An earlier report suggested such measures may have also included an import ban on a number of South Korean cosmetics products that had enjoyed huge popularity among Chinese consumers in recent years.

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