Brazil to investigate claims of Chinese dumping in optical cable sector

Inquiry will include whether Beijing has subsidised the actions, which would violate World Trade Organization rules

Sector is the latest to draw fire from Brazilian businesses, which have alleged unfair practices by Chinese companies in other fields

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Marcelo Andrade (right), Prysmian’s vice-president for telecommunications in Latin America, inspecting optical cable at the company’s Brazilian facility. Photo: Prysmian Group

Published: 10:04pm, 18 Jul 2023Updated: 11:29pm, 18 Jul 2023

The Brazilian government has launched two investigations to determine whether Chinese companies that manufacture optical cables have engaged in unfair trade practice in the South American nation.

The Brazilian Foreign Trade Secretariat will look into accusations of dumping – the trade practice of exporting goods at prices lower than the market rate, potentially creating an uneven playing field for local suppliers.

Brasilia’s Trade Defence department is also keen to determine whether these practices have been facilitated by subsidies from the Chinese government. Such actions would contravene World Trade Organization rules.

The reviews indicate that despite Brazilian President Luiz Inácio Lula da Silva’s efforts to bolster diplomatic relations with Beijing, apprehensions remain regarding the potential impact on its economy, concerns that the United States and the European Union have also expressed recently.

Discussions about the investigations were initially tabled in 2022, during Jair Bolsonaro’s term as president, but have only recently been given the green light.

Three multinational corporations – Italy’s Prysmian, Mexico’s Cablena and Japan’s Furukawa Electric Co – advocated for it, contending they have suffered substantial losses in the Brazilian market after Chinese competitors used price manipulation tactics.

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