China’s recent investigation into Canada’s tariff hike on Chinese electric vehicles has sparked discussions among analysts. The probe, initiated under the pretext of combating discriminatory practices, has the potential to set a new precedent in trade disputes.
The Ministry of Commerce cited Article 7 of China’s foreign trade law, allowing for countermeasures against any country implementing discriminatory measures. This move came shortly after Canada announced 100% tariffs on Chinese electric vehicles.
Economics professor Yao Weiqun noted that this use of a trade tool is unconventional for China, despite the provision existing since 1994. The investigation indicates that China is prepared to take necessary action based on its regulations.
By leveraging legal clauses to address trade issues, China’s response marks a significant shift in its trade strategy and could potentially lead to more proactive measures in future trade disputes.
