China-India spat shows no sign of slowing as Beijing extends anti-dumping tariff on Indian fibre optic product

China on Thursday extended an anti-dumping tariff on a fibre optic product made in India, worsening trade ties damaged by a deadly border clash in June

Meanwhile, India has increased the number of new investigations into Chinese imports and imposed new duties on several products

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Diplomatic relations between China and India have plunged following a deadly clash between troops in the Himalayas in June. Photo: AFP

Published: 9:15am, 15 Aug 2020Updated: 9:15am, 15 Aug 2020

A low-level trade conflict between India and China shows no sign of slowing, with New Delhi stepping up action against Chinese imports over the past three months and Beijing on Thursday extending an anti-dumping duty on an Indian fibre optic product.

A review of India’s anti-dumping database shows authorities have increased the number of investigations into Chinese imports and imposed new duties on products following a border skirmish in June, which resulted in the deaths of 20 Indian soldiers and prompted local campaigns to boycott Chinese goods.

India has initiated two fresh anti-dumping and countervailing investigations against Chinese “natural mica pearl industries pigments”, which are used to provide a frosting effect in paint and cosmetics, and against viscose rayon filament yarn used in clothing.

In July, India also renewed a safeguard tax of 14.5 per cent on solar photovoltaic cells from China, Thailand and Vietnam to protect domestic manufacturers. Early this month it made a preliminary anti-dumping ruling against Chinese made polyethylene terephthalate resin.

China on Thursday extended a 2014 tariff on an Indian optical fibre five years in its first trade action since the skirmish.

Although economists say the anti-dumping procedures are in line with World Trade Organisation (WTO) rules and a multitide of other prior procedures, their use since the border incident has left the impression that India, in particular, is using legal trade practices to target Chinese imports.

The relatively arcane trade dispute over optical fibre, which is used in telecommunications networks and cable television, also speaks to global oversupply and the effort that China has made to protect its domestic manufacturers.