China Trade Dynamics: Analyzing Tariffs and Economic Relations with Canada
China Trade Tensions: Implications of Tariffs on EVs
In a provocative move, China has initiated an investigation into Canada's tariff hikes on Chinese electric vehicles (EVs). This investigation follows Canada's recent announcement of implementing 100% tariffs on these vehicles, citing discriminatory practices.
Legal Basis for China’s Actions
- The Ministry of Commerce referenced Article 7 of China’s foreign trade law, allowing countermeasures against any discriminatory actions.
- This article, although established in 1994, is being utilized here for the first time, indicating a shift in China's trade approach.
A notable perspective from Yao Weiqun at Shanghai University highlights that China may now address the matter through bilateral negotiations alongside World Trade Organization (WTO) mechanisms.
Trade Relations and Geopolitical Factors
- China's concerns regarding Canada’s actions are heightened as they perceive Canada’s tariffs as harsher compared to those imposed by the US and EU.
- Henry Gao of Singapore Management University suggests that China's shift stems from a desire to act decisively against perceived injustices.
Deborah Elms from the Hinrich Foundation notes that these actions reflect the geopolitical context, with China potentially viewing Canada as a softer target than the United States due to the differing levels of economic interdependence.
Future Considerations
With the US presidential election on the horizon, the timing of China's actions may align strategically, allowing for potential adjustments in international relations based on future US tariff policies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.