Investigation Statement from China's Ministry of Commerce
China's Ministry of Commerce has announced that it has launched an investigation into Canada's tariffs, which will examine not only the increase in tariffs but also the selective exclusion of Chinese products from government subsidies and incentive programs.
The statement said the investigation process usually takes three months, but could be extended under special circumstances. It also noted that Canada could request intergovernmental negotiations within 30 days.
This is the first time China has launched such an investigation on the grounds of increased tariffs. Previously, the United States imposed additional tariffs of the same rate on similar products imported from China, and the European Union (EU) increased tariffs following an investigation into subsidies for electric vehicles imported from China.
Article 7 of China’s Foreign Trade Law allows for countermeasures to be taken against any country or region’s “discriminatory basis” prohibitions, restrictions and practices, highlighting how China’s trade policies are shaped in the international arena.
In Canada, the government led by Prime Minister Justin Trudeau announced on August 26 that it would impose a 1% tariff on electric vehicles imported from China starting October 100, and a 15% tariff on aluminum and steel products starting October 25.
China filed a formal complaint against Canada on September 6, arguing that these tariff hikes and other restrictive measures contravene World Trade Organization (WTO) rules.
