Nation takes steps targeting global trade protectionism

Export-bound vehicles await shipment at Taicang Port, Jiangsu province. (JI HAIXIN/FOR CHINA DAILY)

Canada's imposition of additional tariffs on Chinese goods has strained bilateral trade relations, and China reserves the right to respond decisively to any foreign tariff measures it perceives as discriminatory, experts and business associations said on Sunday.

On Saturday, the Customs Tariff Commission of the State Council announced that starting on March 20, China will levy additional tariffs ranging from 25 percent to 100 percent on selected imports from Canada.

An additional 100 percent tariff will be levied on Canadian rapeseed oil, oilseed meal and peas, and a 25 percent tariff will target aquatic products and pork from Canada, the commission said.

The decisions follow the North American country's move in October to impose additional tariffs on Chinese electric vehicles, steel and aluminum products.

The Ministry of Commerce said on Saturday that this is the first time China has initiated an anti-discrimination investigation and implemented corresponding measures under its Foreign Trade Law.

According to the law, if any country or region enacts prohibitive, restrictive or otherwise discriminatory trade measures against China, then China may, depending on the situation, retaliate against the country or region involved.

Shi Xiaoli, a professor of international trade law at China University of Political Science and Law in Beijing, said China's anti-discrimination investigation is a robust response to violations of the World Trade Organization's "nondiscrimination principle".

This innovative institutional approach demonstrates China's capability and determination to defend its legitimate interests, she said.

Canada is facing its current predicament of being caught between conflicting pressures because it blindly follows the United States, which makes it solely responsible for the consequences, she added.

The U.S. is currently imposing tariffs on several countries, including China, Canada and Mexico, and some countries are attempting to use the imposition of additional tariffs on China as a bargaining chip to gain tariff relief from the U.S.

The Commerce Ministry has clearly stated that China will use anti-discrimination tools to counter such actions.

Yao Weiqun, a professor of international trade at Shanghai University of International Business and Economics, said that for Canada, this will result in reduced market access and significant economic losses.

Highlighting that trade protectionism acts as a double-edged sword, Yao said that tariff policies should be grounded in the genuine needs of domestic industries and should not mimic the moves of other nations.

"The trade dispute between China and Canada exemplifies the escalating trend of global trade protectionism," Yao said, noting that under the influence of the U.S., countries are vigorously competing for their own benefits, therefore further complicating international trade relationships.

A spokesperson for the Commerce Ministry said on Saturday that China urges the Canada to immediately correct its wrongful actions, revoke the restrictive measures and eliminate their adverse impacts.

Six major Chinese industry associations and business chambers also expressed their support for the government's anti-discrimination investigation into Canada's restrictive trade practices, calling on Ottawa to halt its discriminatory actions and adhere to the principles of fair trade.