China's Ministry of Commerce (MOC) has alleged that optical telecom manufacturer Corning dumped optical fibres exported from the US to China.
Dumping is a term that is applied to the sale of products abroad at a price that is below the market price. Corning denied the charge.
A preliminary determination issued by the MOC found that Corning had dumped single-mode optical fibres, causing material injury to domestic Chinese optical-fibre producers.
"Corning believes that it has not dumped optical fibre into China and that the company has not caused injury to the Chinese domestic producers," said Robert Brown, Corning's senior vice president and general manager of Optical Fibre.
As a result of the MOC's preliminary determination, Chinese importers of some Corning single-mode optical fibre products will be required to make cash deposits of 16% of the purchase price to Chinese customs authorities.
Corning said the impact of the decision could not immediately be determined, but said if the ruling holds it could have a substantial impact on the company's ability to export optical fibre to China.
China accounts for 6% of Corning's revenue from sales of optical fibre and cables.
Sumner Lemon writes for IDG News Service