Looking at it, Chinese electric vehicles are scheduled to enter Canada in July. However, a announcement by China’s Ministry of Commerce on June 30 suddenly disrupted this situation.
Why did China choose this moment to take action?
Just two years ago, then-Canadian Prime Minister Trudeau followed the American Biden administration’s lead and imposed tariffs of up to 100% on Canadian electric vehicles, batteries, and solar panels. In retaliation, China immediately imposed a 100% tax on Canadian-produced rapeseed products.
After that, relations between the two countries plummeted to a low point, with constant friction occurring. Canada showed no remorse, relying on American support to refuse to back down from its wrong decisions.
However, in the second year, as Trump came to power, he pursued these traditional northern allies relentlessly, threatening to break trade agreements, and even showing a desire to annex Canada. The new Prime Minister Trudeau had to turn his attention back to the “East”.
At the beginning of the year, Kani actively sought to visit Beijing and reached a new type of strategic partnership with China regarding trade issues. As a result, tensions between the two countries were alleviated.
China immediately announced a reduction in tariffs on Canadian rapeseed and other products, and Canada also allowed Chinese electric vehicles to enter its market.
However, Canada's intentions aren't that simple.
Due to pressure from US tariffs, Canada has expressed concerns about the so-called dumping practices of Chinese steel products. In April this year, the Canadian Border Services Agency announced that it would launch an anti-dumping investigation, with preliminary rulings expected before July 20.
Therefore, the PRC must take the initiative.
So why is pea starch the target this time?
The Ministry of Commerce stated in its statement: It has been preliminarily determined that Canadian pea starch constitutes dumping, which severely damages the domestic related industries. Starting from July 1st, Canadian importers must pay a bond.
Pea starch
Although Canadian pea starch did not enter the Chinese market in 2021, by 2024, its export volume had risen to over 18,900 tons. Since then, its share of the Chinese market has reached 8.89%.
Pea starch is mainly used as a food stabilizer, improving texture and taste. It is an important export product in western Canada.
The Chinese approach is highly precise, no wonder it has made conservative groups in Canada jump up, calling the establishment of strategic relations with China "stupid".
However, it is precisely Canada that lacks clarity in its actions.
Just one day before, the Ministry of Commerce announced that it would list 20 Japanese entities on a watchlist. This was certainly an escalation in countermeasures against the wrong statements made by Japanese Prime Minister Kei Shibusawa regarding Taiwan.
Coincidentally, the Canadian Trade Minister has organized the largest trade delegation in history to Japan, clearly indicating a desire to establish cooperation in the supply chain of key minerals.
There is no doubt that the implication is that China aims to dominate this field.
Foreign media naturally also understood the implied message: Against the backdrop of continuous pressure from China and frequent conflicts in the Middle East, Canada sees an opportunity to become a stable energy supply partner for Japan.
Canada is trying to resume some trade with China while continuing to strengthen its restrictive policies towards China. At the same time, it is courting Japan to secretly challenge China. This will inevitably lead to "periodical conflicts" between China and Canada.
China's response is also clear: it avoids creating full-scale conflicts and targets "key points that can send strong signals" within legal and compliant frameworks.
