China announced on Tuesday that it is initiating an anti-discrimination investigation into Canada’s recent tariff hikes on Chinese electric vehicles (EVs), steel, and aluminum products. According to a statement from the Ministry of Commerce (MOC), this marks the first such probe ever conducted by China and is unprecedented on a global scale.
The investigation, set to follow China’s foreign trade laws, comes in response to Canada’s decision last week to impose a 100-percent surtax on Chinese-made EVs starting October 1, 2024, and a 25-percent surtax on steel and aluminum imports from China effective October 15, 2024. The MOC criticized Canada for implementing these measures without conducting its own investigation, accusing it of “blindly following” U.S. policies and engaging in “discriminatory unilateral restrictive measures.”
China Anti-Discrimination Investigation Against Canada
China plans to appeal to the World Trade Organization (WTO) and will also initiate anti-dumping investigations into Canadian rapeseed and certain chemical products. The decision follows reports of a significant increase in Canadian rapeseed exports to China, with prices dropping substantially, which Chinese officials claim is causing harm to local industries.
Liang Ming, a researcher with the Chinese Academy of International Trade and Economic Cooperation, condemned Canada’s actions as “outright discriminatory” and a form of trade protectionism that violates WTO principles of non-discrimination and fair trade. Liang emphasized that the anti-discrimination probe aims to protect the legitimate rights of Chinese companies.
China has vowed to take comprehensive measures in response to Canada’s tariffs, asserting that such actions undermine global trade liberalization and the multilateral trading system. Despite the escalating tensions, China remains committed to ensuring its actions comply with international laws and WTO regulations, aiming to preserve stable growth in foreign trade and economic relations.
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