China denounces Canada's declared import taxes on electric vehicles as exemplary trade protectionism.
Canada's administration has received flak from China over its planned import taxes on electric vehicles, branding it as protectionism. On Tuesday, China's Commerce Ministry labeled Canada's independent trade actions as short-sighted and imitating other countries, a classic display of trade protectionism. According to the ministry, these taxes escalate turbulence in global manufacturing and logistics sectors, adversely impact China-Canada economic and trade ties, and injure businesses in both nations.
Canada announced 100% taxes on Chinese electric vehicles and 25% levies on Chinese steel and aluminum on Monday. Prime Minister Justin Trudeau alleged China was exploiting global markets unfairly. Deputy Prime Minister Chrystia Freeland asserted that Canada aims to steer clear of becoming a sheltered storage space for Chinese excess production. Earlier, U.S. National Security Advisor, Jake Sullivan, prodded Canada to impose equivalent taxes on Chinese electric vehicles.
China's Commerce Ministry denounced Canada for breaching World Trade Organization (WTO) regulations, an act it vehemently opposes. In addition, China's Foreign Ministry urged Canada to avoid politicizing economic and trade issues. "Canada's flourishing electric vehicle industry is a testament to relentless technological advancements, a well-structured industrial and supply chain, and competitive market conditions," stated ministry spokesperson Lin Jian.
Chinese electric vehicle companies offer their vehicles for approximately 10,700 euros. U.S. President Joe Biden attributes this to Chinese government subsidies, which permit manufacturers to distribute their products at a loss, conferring an unfair advantage in global commerce. Chinese delegates counter that substantial production keeps prices low and advances the shift towards a sustainable economy.
The Chinese Commerce Ministry criticized Canada's 100% import duties on Chinese electric vehicles and 25% levies on steel and aluminum as a violation of free trade principles. Furthermore, Canada's actions on import duties could strain its economic relations with China, potentially affecting businesses on both sides.
