Canada’s recent decision to impose tariffs on Chinese electric vehicles (EVs) has ignited a heated response from the Chinese government and state media.
The move has not only provoked strong official condemnation but also triggered a media campaign against Canada, underscoring the growing friction in global trade relations.
The decision to levy tariffs comes amid a broader international trend where countries like the US and European nations have similarly imposed barriers to protect their domestic EV industries from the influx of competitively priced Chinese vehicles.
These measures aim to safeguard local industries, which fear being outpaced by the state-subsidized Chinese EV sector.
The political and economic stakes are high, as Canada seems to align itself with these protective strategies, possibly under pressure to bolster its industry while joining the US and European bloc against Chinese competition.
China’s response to Canada’s tariffs on EVs
The Chinese government wasted no time in expressing its disapproval. A spokesperson from the Chinese Ministry of Commerce accused Canada of violating World Trade Organization (WTO) rules.
According to the spokesperson, the tariffs undermine the principles of open competition, as Chinese EVs are simply leveraging their comparative advantages in the global market.
The Chinese Ministry emphasized that Chinese EVs are well-received globally, including by Canadian consumers, and contribute significantly to climate change mitigation and the green transition.
The Chinese Ministry of Commerce also warned that retaliatory measures could severely disrupt global industrial ecosystems and supply chains, reflecting the seriousness with which China views these trade barriers.
Chinese state media escalates the criticism
State media has amplified the government’s stance, further intensifying the trade dispute.
The Global Times, a prominent Chinese government-affiliated outlet, criticized Canada’s decision harshly.
The newspaper accused Canada of “shooting itself in the foot” by adopting protectionist policies that align with broader geopolitical objectives of the US, which the outlet claimed undermines Canada’s economic interests.
The rhetoric reflects a broader discontent with Canada’s stance and highlights the potential economic and diplomatic fallout.
The tariffs, set to take effect on October 1, 2024, represent a significant escalation in the trade dispute.
Both countries now face a critical period to negotiate a resolution before the tariffs are enforced. Until then, the Chinese media is expected to maintain its critical stance, potentially affecting Canada’s trade relationships and economic policies.
Canada will be closely monitoring the situation and may seek support from the US if China retaliates economically.
The potential use of China’s economic power as leverage could pose a threat to Canada’s economy, which is already grappling with its domestic challenges.
As the situation unfolds, the focus will be on whether diplomatic channels can offer a resolution or if the trade tensions will escalate further.
This article first appeared on Invezz.com
