China launches anti-discriminatory investigation into Canada’s decision of imposing additional tariffs against EVs, steel and aluminum imported from China

China’s Ministry of Commerce (MOFCOM) on Tuesday announced decisive countermeasures against Canada, including plans to initiate dispute settlement proceedings at WTO and launch anti-discriminatory probes, in response to Canada’s decision to impose hefty additional tariffs on Chinese products, including electric vehicles (EVs), steel and aluminum.

Chinese officials and experts stressed that the countermeasures are in line with Chinese laws and regulations as well as WTO rules, and slammed that Canada’s move in lockstep with the US and the EU is egregious in nature and violates WTO rules. 

Among the countermeasures is a decision to initiate dispute settlement proceedings against Canada’s additional tariff against Chinese EVs and other products at the WTO to safeguard the interests of its industries.

In addition, China will launch an anti-discriminatory investigation into Canada’s decision of imposing additional tariffs on Chinese EVs, steel and aluminum, based on the Article 7 and Article 36 of China’s Foreign Trade Law.

The Article 7 of China’s Foreign Trade Law clearly stipulates that in the event that any country or region applies prohibitive, restrictive or other like measures on a discriminatory basis against China in respect of trade, China may, as the case may be, take countermeasures against the country or region in question.

The Article 36 of China’s Foreign Trade Law states that the authority responsible for foreign trade under the State Council may give a notice to the public the activities in violation of this Law for impairing foreign trade order.

The MOFCOM said that it will take subsequent measures based on the actual situation. Industry insiders said that the anti-discriminatory probe is the first of its kind, and is in line with both Chinese laws and WTO rules.

Also on Tuesday, the MOFCOM announced that at the request of domestic industry, China will launch an anti-dumping investigation into canola seeds imported from Canada, in better responding to industry concerns and in order to safeguard the legitimate rights and interests of the domestic enterprises.

In 2023, Canada’s exports of canola seeds to China reached $3.47 billion, increasing 170 percent year-on-year, even as prices continuously dropped, according to the MOFCOM. Affected by Canada’s unfair competition, Chinese domestic industries continue to suffer losses, the ministry said.    

In addition, China also plans to launch an anti-dumping probe into relevant chemical products from Canada based on application filed by Chinese domestic industries, the MOFCOM announced.

“China’s attitude is very clear and it will take all necessary measures to defend the legitimate rights and interests of Chinese companies,” the MOFCOM said, while announcing the measures. 

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