Beijing’s probe into Canadian canola oil imports comes after Ottawa unveiled massive levies on Chinese electric vehicles (SCOTT OLSON

China is set to initiate investigations into anti-dumping practices concerning Canadian canola and chemicals.

On Tuesday, China announced its intention to initiate an anti-dumping investigation into Canadian canola and chemical products, seemingly in response to Canada's recent restrictions on imports of Chinese electric vehicles (EVs).

Last month, Canadian Prime Minister Justin Trudeau imposed a 100 percent tariff on Chinese EVs, claiming that China was not adhering to the same environmental and labor standards as other nations.

The United States and the European Union have also enacted significant tariffs on Chinese EVs, with rates of 100 percent and 36 percent, respectively, citing unfair subsidies provided by Beijing to its domestic manufacturers, which they argue distort foreign markets and harm local businesses.

In light of these developments, China has voiced its discontent regarding the tariffs and has undertaken various investigations as a countermeasure.

The Ministry of Commerce stated in an online announcement that it would commence an anti-dumping investigation into Canadian canola imports, citing a substantial increase in exports from Canada, which reached $3.47 billion in 2023, while prices have reportedly declined.

The ministry expressed concerns that Canadian exporters might be engaging in dumping practices, leading to losses for China's domestic canola industry due to unfair competition.

Furthermore, the statement indicated that China is "strongly dissatisfied and resolutely opposed" to the Canadian tariffs and intends to address the matter through the World Trade Organization's dispute resolution mechanism.

Additionally, a similar investigation will be launched regarding certain Canadian chemical products, following requests from domestic industries. The ministry emphasized that China will take all necessary actions to protect the legitimate rights and interests of its enterprises.

The new EV surtax from Ottawa, which adds to the existing import duty of 6.1 percent, is set to take effect on October 1.

The initiative will focus on Chinese electric vehicles and specific hybrid passenger cars, as well as trucks, buses, and delivery vans.

Canada will restrict eligibility for electric vehicle incentives to those manufactured in countries with which it has free trade agreements, thereby excluding China.

Additionally, a new surtax on imports of steel and aluminum products from China will take effect on October 15.

In recent years, the two nations have experienced tensions over various issues, including trade, technology, and human rights. Bilateral relations significantly deteriorated starting in 2018, when Canada detained a senior executive from Huawei, leading to the arrest of two Canadian citizens by Beijing in response.