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Source: Global Times Global Times

Chinese telecom operators get hit with anti-dumping tariffs from India

Published: 14 Dec 2009 23:02:01 PST

India announced it would levy anti-dumping tariffs on imports of Chinese-made telecommunications equipment, according to a Chinese Business News report Tuesday citing China's Ministry of Commerce.

India will impose tariffs of up to 236 percent on Chinese made synchronous digital hierarchy transmission equipment (SDH), according to a statement from the Ministry of Commerce dated December 11.

Different enterprises will be imposed different tariffs depending on the import prices.

Shanghai-based Alcatel-Lucent will pay duties of 29 percent, Huawei Technologies 50 percent, Hangzhou ECI Telecommunication, a Chinese-based Israel company will pay 93 percent and other Chinese telecommunications equipment makers, including ZTE Corporation a whopping 236 percent.

This means that the prices and cost of equipment exported to the Indian market will increase at least 30 percent, Huawei's costs up 50 percent and the ZTE up 2.36 times, according to the report.

Indian SHD equipment manufacturers, including Tejas Networks filed an anti-dumping investigation on Chinese-made SHD equipment in April this year and the Indian government gave the final ruling in September. The tariffs went into effect on December 8, according to the report.

India is an important overseas market for Chinese telecommunications equipment manufacturers. 

Huawei and ZTE just announced expansion plans in the Indian market recently. At present, Huawei has 4,000 employees in India and plans to add 2,000 more in the next 18 months.

Meanwhile, ZTE has more than 1,000 employees in India, and the company predicts it will break even and start making a profit in the next two years.

SHD is a standard technology for digital telephone networks.

Agencies and Li Na contributed to the story


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