China’s Ministry of Commerce (MOFCOM) has initiated and advanced multiple anti-dumping actions against Canadian imports, citing evidence of unfair pricing practices harming domestic industries.
On Tuesday, MOFCOM announced preliminary anti-dumping determinations on Canadian rapeseed (colza seeds) and halogenated butyl rubber, as well as a new probe into Canadian pea starch. Investigations revealed that imports were sold at prices significantly below domestic market rates, causing material injury to Chinese producers.
The rapeseed probe, launched by MOFCOM in September 2024, uncovered extensive government subsidies in Canada’s agricultural sector, which have distorted market supply, created overcapacity, and undermined Chinese farmers. Provisional anti-dumping measures will take effect from August 14, 2025, requiring importers to deposit duties at a uniform rate of 75.8% for rapeseed.
For halogenated butyl rubber, preliminary findings showed dumping margins ranging from 26.2% to 40.5% for Canadian exporters. The product, a high-end synthetic material used in tire inner liners and pharmaceutical stoppers, has seen imports rise despite heavy losses to local producers. Provisional duties will be imposed, while the probe against Indian suppliers was dropped due to negligible trade volume.
Separately, MOFCOM opened an investigation into Canadian pea starch imports, used in vermicelli, liangfen, and food processing, following complaints from the Chinese industry. Evidence indicates a surge in imports at persistently low prices between 2021 and 2024, severely impacting domestic producers.
MOFCOM stressed that these actions comply fully with Chinese law and World Trade Organisation (WTO) rules, and are fundamentally different from Canada’s recent trade restrictions against China, which Beijing says violate WTO commitments.
China is Canada’s largest export market for rapeseed, with imports jumping 170% in 2023 compared to 2022. The crop is vital for nearly 100 million Chinese farmers and a key pillar in rural economies.
Beijing’s move comes amid heightened trade tensions after Canada imposed steep tariffs on Chinese electric vehicles, steel, and aluminium, following U.S. trade policies. Chinese officials warn that Ottawa’s protectionist measures risk disrupting global supply chains and damaging bilateral economic relations.
Related stories:
