China said Tuesday it plans to launch an anti-dumping probe into Canadian canola imports after the Ottawa government decided to impose tariffs on Chinese electric vehicles, driving domestic rapeseed oil futures prices to a one-month high.
Canada has followed the lead of the United States and the European Union and announced last week a 100% tariff on Chinese electric vehicle imports and a 25% tariff on steel and aluminum imported from China.
Dumping is a trade practice of selling a product below its normal price or even below its production cost in order to gain competitive advantages.
China strongly deplores and firmly opposes the discriminatory unilateral restrictive measures taken by Canada against its imports from China, despite opposition and dissuasion from many parties,” a Ministry of Commerce spokesman said in a statement.
Canada is the world’s largest exporter of rapeseed, used in food and biofuels. China is the world’s largest buyer of the oilseed.
“Canada’s canola exports to China have increased significantly and are suspected of dumping, reaching $3.47 billion in 2023, with a year-on-year increase of 170% in volume and a continuous decline in prices,” the ministry said.
“Affected by unfair competition from the Canadian side, Chinese domestic rapeseed-related industries continued to suffer losses,” it added.
Chinese rapeseed meal futures on the Zhengzhou Commodity Exchange rose 5.49% to 2,363 yuan (about $331.80) per metric tonne, following the announcement, reaching its highest level since Aug. 6.
China will also launch an anti-dumping investigation into some Canadian chemical products, the spokesman added.
China intends to resort to the World Trade Organization’s dispute settlement mechanism over Canada’s relevant practices, the spokesman said.