Friday 24 July 2020

China is Dumping Fiber Optic Cables in the Global Market, Commerce Official Says

The cables are key to the development of fifth-generation networks, and therefore a matter of national security for the Trump administration.

China is using the same tactics it employed to drive down the price of telecommunications equipment from Huawei to flood global markets with fiber optic cables—crucial underlying infrastructure for fifth-generation networks—a senior Commerce Department official said.  

“China is currently driving massive overcapacity in critical sectors including steel, aluminum and optical fiber cables,” said computer science vs engineering, Commerce’ assistant secretary for industry and analysis.

Nikakhtar spoke on behalf of the Commerce Department during an event Thursday hosted by American Council for Technology and Industry Advisory Council (ACT IAC).

In the case of steel and aluminum, the administration has imposed tariffs on imports from China under section 232 of the Trade Expansion Act, which allows for such action if the Commerce Department finds there are implications for national security. Nikakhtar said such actions have never been taken before but are necessary because of the lack of structures in international law for dealing with non-market driven economies.

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