China Launches Anti-Dumping Probe into Canadian Rapeseed Imports Amid Trade Tensions

China has begun a one-year anti-dumping investigation into Canadian rapeseed imports, shortly before Canada enforces tariffs on Chinese products. The move highlights escalating trade tensions, with both sides citing violations of international trade rules. Chinese President Xi Jinping and Spanish Prime Minister Pedro Sanchez discussed cooperation to avoid a trade war.

China announced on Monday the initiation of a one-year anti-dumping investigation into Canadian rapeseed imports. This decision comes just weeks before Ottawa's 100% tariffs on Chinese electric vehicles take effect.

In recent weeks, trade tensions have escalated between Beijing and the West, with Canada, the United States, and the European Union imposing tariffs on Chinese imports. The investigation will scrutinize imports from Jan. 1 to Dec. 31, 2023, with preliminary evidence indicating instances of dumping, according to the Chinese commerce ministry.

Chinese President Xi Jinping met with Spanish Prime Minister Pedro Sanchez on Monday to avert a broad trade war. China has already launched similar investigations into EU dairy and pork imports. Sanchez stated that a trade war would be detrimental to all parties and emphasized the need for cooperative, fair trade practices with China.

Canadian rapeseed, also known as canola, is significantly exported to China, which bought 5.5 million metric tons in 2023. The Chinese commerce ministry alleged that the Canadian imports caused substantial industry damage due to increased quantities and reduced prices. Canada's impending tariffs follow similar actions by the United States and European Union, set to begin on Oct. 1.

Industry experts note that the Chinese anti-dumping investigation is distinct from Canada's alleged WTO violations, possibly escalating trade disputes further. The probe, examining damages between Jan. 1, 2021, and Dec. 31, 2023, aims to conclude by Sept. 9, 2025, with a possible six-month extension under special circumstances.

(With inputs from agencies.)