TMTPost -- China issues a serious warning against Canadian government’s new tariffs on critical manufacturing sectors.

Credit：Xinhua News Agency

China has taken note of Canada's latest announcement to initiate a 30-day consultation for potential surtaxes on Chinese batteries and parts, semiconductors, solar products and critical minerals, and firmly opposes such move to impose additional tariffs, a spokesperson for the Ministry of Commerce of China (MOFCOM) responded to question about Toronto’s move on Wednesday.

Canada's move, which came only half a month after it imposed restrictions on Chinese electric vehicles (EVs) and other products, is "dangerous and irresponsible", and blindly follows certain country to take unilateral suppression against China, said the spokesperson. The person said Canada’s action will severely impact bilateral economic and trade relations, gravely undermine the global economic system and trade rules, and destabilize the global industrial and supply chains.

China urges Canada to respect the facts, adhere to the World Trade Organization (WTO) rules and refrain from going further down the wrong path, said the spokesperson. The person vowed that China will take all necessary measures to protect the legitimate rights and interests of Chinese enterprises.

The Canada government has pre-disclosed on August 26 its intention to open a second 30-day consultation on related critical manufacturing sectors, including batteries and battery parts, semiconductors, solar products, and critical minerals. The same day, the government announced it will be implementing a 100% surtax on all Chinese-made electric vehicles (EVs), effective October 1, 2024, and a 25% surtax on imports of steel and aluminum products from China, effective October 15, 2024.

In a statement Tuesday, the Department of Finance of Canada claimed Chinese producers benefit from Beijing’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards, and China’s “unfair competition threatens Canadian workers and businesses, and those around the world”. the department said the new public consultation is to seek views on the potential application of a surtax on critical mineral products as well as the timing of the coming into force of any potential measures. These measures would build upon those announced on August 26, the department added.

In response to Canada’s surtaxes on Chinese goods, China last Friday lodged a request for consultations with Canada at the WTO over Toronto’s plan to impose additional tariffs on EVs as well as steel and aluminum products. Chinese commerce ministry announced Monday the start of an anti-dumping investigation into imports of rapeseed from Canada. The inquiry is set to conclude by September 9, 2025 and may be extended for an additional six months. It will examine imports from Jan. 1 to Dec. 31, 2023. Preliminary evidence and information obtained by the Ministry of Commerce indicate that Canadian-origin rapeseeds are being sold in China at prices lower than their normal value, suggesting the fact of dumping, the ministry's trade remedy and investigation bureau said in a notice Monday.

"Canada's tariff threats against Chinese products are dangerous and risky, which underlines that its trade policies are increasingly unfriendly to China," Li Haidong, a professor at the China Foreign Affairs University, told the Global Times, the Chinese state-backed newspaper, on Wednesday. Li expected Canada may continue to closely follow in the U.S.' footstep to impose higher tariffs on a larger number of Chinese products. However, Canada's actions will likely incur countermeasures from China, Li said.