appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Kinling Lo

China’s investigation into Canada’s tariff hike on Chinese-made electric vehicles (EVs), made on the basis of combating “discriminatory” practices, has set a new precedent and could open up more fronts for future trade disputes, analysts said.
In its statement divulging the probe on Tuesday, the Ministry of Commerce (Mofcom) quoted Article 7 of China’s foreign trade law, which permits countermeasures against “any country or region” as a response to “prohibitive, restrictive or other measures” applied on a “discriminatory basis”.
The investigation, which the ministry said would lead to “necessary action”, was disclosed shortly after Canada said it would apply 100 per cent tariffs on Chinese-made EVs.
“This is a new use of a trade tool for China,” said Yao Weiqun, a professor in economics at the Shanghai University of International Business and Economics.
Though the article has been part of the law since 1994 – when the first version was entered into force – it has never been referenced as justification for a trade action.
“This means on top of the existing mechanism at the [World Trade Organization], China can also officially deal with Canada bilaterally, which opens more ways for this matter to be tackled,” Yao said.
China regards Canada’s EV tariffs as worse than the ones by the US and EU, because Canada did not conduct its own investigation beforehand
Henry Gao, Singapore Management University
On Friday, Mofcom said that an official case had been filed against Canada’s tariffs on Chinese-made EVs, aluminium and steel at the World Trade Organization’s (WTO).
Mofcom called Canada’s move “a classic demonstration of unilateralism and trade protectionism” and “a disturbance to the global supply chain of EVs and steel industry”, and demanded Canada to “oblige to WTO rules and fix its wrongdoings”.
Canada’s tariffs came shortly after similar duties were imposed by the US and European Union. Both have accused China of overcapacity and unfair competition in its production of green products, including EVs and solar panels.
While Mofcom has voiced opposition to all those actions, it accused Canada of “ignoring opposition and persuasion from many parties” in an online statement on Tuesday, adding China intended to file a case against Canada under the WTO’s dispute settlement mechanism.
Other measures announced by Mofcom on Tuesday included an anti-dumping investigation into the rapeseed trade and a potential audit on imports of Canadian chemicals.
“China regards Canada’s EV tariffs as worse than the ones by the US and EU, because Canada did not conduct its own investigation beforehand, simply following the US’ action,” said Henry Gao, a law professor at Singapore Management University.


Gao, who specialises in WTO law and Chinese law, said the anti-discriminatory article in the Chinese foreign trade law was modelled after similar legislation in the US and EU. It had not been previously used, he added, as China preferred to “follow proper WTO procedure in settling trade disputes” but now wants to deter other countries with “swift and decisive countermeasures.”
Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, added China’s action has a geopolitical element, and any follow-up moves would likely be subject to a political schedule.
“It could be challenging to deal with the United States. So I think it’s easier for China to go after the Canadians than it is to go after the Americans,” Elms said.
“The economy is less invested in Canada than it is in the United States,” she added. “It’s unlikely to result in the same kinds of pressures that you might get if you really had an argument with the United States about the appropriate way to manage trade.”
Elms said the investigation could begin as early as September and drag through January, timing that would delay action until after the US presidential election in November.
“If the United States were to come in with a new administration and adjust those tariffs, Canadians might adjust their tariffs, which would make this more or less of a problem for China.”


Asean firms hope Pinglu Canal will open China market, but fear flood of imports

Scott Kennedy on China’s ‘slow tech dragon’ and 2 more Xi-Trump meetings

Why Xi’s US trip leaves Europe relieved by the trade truce – but wary of what comes next

Why US chip controls took a back seat at the Xi-Trump summit

China trade

China widens trade battlefield with precedent-setting dispute over Canada’s EV tariffs

China has vociferously objected to Canada’s announcement of 100 per cent tariffs on Chinese elecrtic vehicles. Photo: Reuters

China has vociferously objected to Canada’s announcement of 100 per cent tariffs on Chinese elecrtic vehicles. Photo: AP

China investigates Canadian rapeseed imports following EV tariffs

China has launched an anti-dumping investigation into Canadian rapeseed imports, just days after the latter country announced it would tax Chinese electric vehicle imports by 100 per cent. Photo: AFP

China has launched an anti-dumping investigation into Canadian rapeseed imports, just days after the latter country announced it would tax Chinese electric vehicle imports by 100 per cent. Photo: Reuters

Canada to impose 100% tariffs on China-made EVs, 25% levy on steel, aluminium, matching US

Canada’s government is imposing a 100% tariff on imports of Chinese-made EVs that matches US tariffs. Photo: AP

Canadian Prime Minister Justin Trudeau said his country would impose a 100 per cent tariff on the import of Chinese electric vehicles. Photo: AP

Canada’s government plans to impose a 100 per cent tariff on imports of Chinese-made EVs. Photo: AP

Tesla may end up the only victim as Canada mulls punitive tariffs on Chinese-made EVs

A lorry transports new Tesla cars from its factory in Shanghai. Photo: Reuters

‘Smears and baseless’: China rejects Canadian election meddling claims

A Canadian government report China of interference in Canada’s past two federal elections. Photo: Bloomberg

China takes aim at Canada’s move to block Chinese, Russian, Iranian research links

The move puts further strain on relations between China and Canada. Photo: Reuters

Sichuan University in Chengdu is among the Chinese institutions identified on the list. Photo: Shutterstock

Economy

Global Economy

China Economy

News

China

World

United States & Canada

In a just-announced investigation into Canada’s ‘discriminatory’ tariffs on EV imports, China has cited new legal language as justification.


China widens trade battlefield with precedent-setting dispute over Canada’s EV tariffs

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}In a just-announced investigation into Canada’s ‘discriminatory’ tariffs on EV imports, China has cited new legal language as justification.

In a just-announced investigation into Canada’s ‘discriminatory’ tariffs on EV imports, China has cited new legal language as justification.