China announces probes over Canada's tariff hike, certain products

China will launch an anti-discrimination investigation into Canada's tariff hikes on electric vehicles (EVs) as well as steel and aluminum products imported from China, the Ministry of Commerce said Tuesday.

China will also launch anti-dumping investigations into rapeseed imports and certain Canadian chemical products, a spokesperson of the ministry said in an online statement.

The Canadian side adopted discriminatory unilateral restrictive measures targeting imports from China, in disregard of opposition from various parties, the spokesperson said, noting that China is strongly dissatisfied with and firmly against such moves.

China will file an appeal to the World Trade Organization (WTO) dispute settlement mechanism against these practices, according to the spokesperson.

The anti-discrimination investigation will be initiated in accordance with relevant stipulations of China's foreign trade law, and corresponding measures will be taken subsequently in light of actual conditions.

This decision came after Canada announced last week that it will implement a 100-percent surtax on all Chinese-made EVs, effective October 1, 2024, and impose a 25-percent surtax on imports of steel and aluminum products from China starting October 15, 2024.

Citing recent reports from the Chinese domestic industry, the ministry spokesperson said Canadian rapeseed exports to China have increased significantly, with dumping suspected. Canada exported US$3.47 billion worth of rapeseed to China in 2023, with the volume surging 170 percent year on year and prices continuously moving downward, according to the spokesperson.

"Affected by unfair competition from the Canadian side, China's rapeseed-related industries have continued to suffer losses," the spokesperson said.

The anti-dumping probe into Canada's rapeseed exports will be conducted in accordance with China's relevant laws and regulations as well as WTO rules, while that into relevant Canadian chemical products will be launched at the request of China's domestic industries.

"China's position is clear-cut. The country will take all measures necessary to safeguard the legitimate rights and interests of Chinese companies," the spokesperson said.