Following months of heightened trade friction, bilateral relations between Beijing and Ottawa have entered a period of de-escalation.  Implementing the resolutions reached during Prime Minister Mark Carney’s mid-January visit to China, China's Ministry of Commerce (MOFCOM) concluded its anti-dumping investigation and adjusted its anti-discrimination measures last weekend.

Amid positive momentum between Beijing and Ottawa on resolving a string of trade disputes, China's Ministry of Commerce (MOFCOM) signaled an adjustment to its anti-discrimination measures targeting Canada and an extension of the anti-dumping investigation on canola seeds, with new announcements expected in the coming weeks.

On September 13, China's Ministry of Commerce (MOFCOM) announced an anti-discrimination investigation into U.S. measures against China in the integrated circuit sector, including tariffs, export control measures, and investment barriers. The probe was announced as high-level officials from both nations were meeting in Spain for bilateral trade

Canada has requested WTO consultations on China's recent antidiscrimination investigation, under which China imposed tariffs in response to Canadian tariffs on EVs and steel/aluminum that had been imposed last September.

Over the weekend, Beijing concluded its first anti-discrimination investigation, related to Canada's tariffs on Chinese EVs, steel and aluminum, and other products, and announced retaliatory tariffs on Canadian agricultural goods and seafood.

Last week, China's Ministry of Commerce (MOFCOM) disclosed more information about its anti-discrimination investigation on Canada's tariffs on Chinese EVs and other products, as well as several related measures.

Not surprisingly, China is pushing back hard against Canada's recently announced tariffs on Chinese EVs, steel, and aluminum, with actions at both the multilateral and unilateral level.