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Investigation into “discrimination” from China to Canada

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The Beijing administration announced that an investigation into the additional customs tariffs imposed by Canada on imported electric vehicles, steel, and aluminum products from China for “discrimination” has been initiated. According to a statement from the Chinese Ministry of Commerce, the investigation will consider not only tariff increases but also the selective exclusion of Chinese products from state subsidies and incentive programs. The statement mentioned that the investigation process generally lasts for 3 months but may be extended under special circumstances, and that Canada can request intergovernmental negotiations within 30 days. China is launching an investigation for the first time based on the grounds of “discrimination” against a country due to an increase in customs tariffs. Previously, the US announced additional customs tariffs of the same rates on the same products imported from China, and the European Union (EU) decided to increase tariffs after conducting a subsidy investigation on electric vehicles imported from China. Article 7 of China’s Foreign Trade Law allows for responding to the “discriminatory basis” prohibitions, restrictions, and practices of any country or region with “countermeasures.” The government in Canada, led by Prime Minister Justin Trudeau, announced on August 26 that starting from October 1, electric vehicles imported from China would face a 100% customs tariff, while aluminum and steel products would face a 25% tariff starting from October 15. China filed a complaint against Canada on September 6, arguing that the tariff increases and other restrictive measures violate the rules of the World Trade Organization (WTO).

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