The Ministry of Commerce Photo: VCG

China's Ministry of Commerce (MOFCOM) on Tuesday announced provisional anti-dumping measures on imported rape or colza seeds and halogenated butyl rubber originating from Canada, citing that the investigation found preliminary evidence indicating the imported products were dumped, causing substantial injury to the related domestic industry. The ministry stressed that the measures comply with both Chinese law and WTO rules.

Findings from the rapeseed investigation revealed extensive government subsidies and preferential policies in Canada's agricultural sector, particularly for rapeseed production, which have distorted market supply and demand and led to severe overcapacity, resulting in a preliminary determination that such imports are subject to "special market conditions," according to MOFCOM.

MOFCOM has decided to implement provisional anti-dumping measures in the form of a security deposit. Starting from August 14, 2025, importers of the investigated products shall provide the corresponding security deposit to the China Customs based on the deposit rates determined for each company in this preliminary determination. The deposit rate imposed on all Canadian companies is 75.8 percent, per MOFCOM.

Responding to media inquiry for comment on MOFCOM's move to issue preliminary anti-dumping determinations, a MOFCOM spokesperson said Tuesday that MOFCOM initiated a self-initiated anti-dumping investigation into imports of rapeseeds originating from Canada. Subsequently, on September 14, 2024, in response to applications from domestic industries, MOFCOM launched an anti-dumping investigation into imports of halogenated butyl rubber originating from Canada and several other countries.

Following the initiation of these cases, MOFCOM conducted the investigations in strict accordance with Chinese laws and regulations as well as WTO rules, upholding the principles of fairness, impartiality, openness, and transparency, the spokesperson said, noting that preliminary evidence indicated the existence of dumping of the investigated products, substantial injury to the related domestic industries, and a causal link between the dumping and the injury.

In line with the provisions of China's Anti-Dumping Regulations, MOFCOM issued preliminary determinations for both cases on Tuesday, deciding to implement provisional anti-dumping measures, the spokesperson said, noting that the dumping margin was set at 75.8 percent for Canadian rapeseed exporters, and between 26.2 and 40.5 percent for Canadian exporters of halogenated butyl rubber.

The anti-dumping probe is a legitimate trade measure that complies with WTO rules to protect domestic industries, and there is a fundamental difference between the probe and Canada's discriminatory measures that violate WTO rules, according to analysts.

MOFCOM initiated these measures to safeguard domestic industries from the impact of low-priced dumped products, and anti-dumping measures target unfair trade practices and are made after widely consulting all parties involved, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday. 

China's investigations strictly comply with relevant laws, regulations, and WTO rules, conducting transparent case filings and investigations, Zhou said, noting that the decisions are made objectively and fairly based on the findings to protect the legitimate rights of domestic industries.

On September 9, 2024, MOFCOM launched an anti-dumping investigation, on its own initiative, into imports of rapeseeds from Canada worth $3.47 billion. In the following days, the ministry, acting on requests from domestic industries, initiated anti-dumping probes into imports of halogenated butyl rubber from Canada, Japan, and India.

According to Chinese law and WTO rules, there are two launch scenarios for such anti-dumping probes: when an application is made from within the industry, and when a relevant authority initiates a probe independently.

China is the largest export market for Canadian rapeseed. In recent years, Canadian rapeseed exports to China surged, with prices consistently undercutting domestic Chinese prices, severely impacting local producers and causing sustained losses in the industry.

According to data from China's General Administration of Customs, imports of Canadian rapeseed in 2023 rose 170.37 percent from 2022, and were up a sharp 107.18 percent compared with 2021.

Rapeseed is China's largest oil crop, involving nearly 100 million growers, and serves as a pillar industry in many regions as well as a key livelihood sector in the country's central and western areas.

Also on Tuesday, MOFCOM initiated an anti-dumping investigation on pea starch imported from Canada. The period to be investigated is January 1 to December 31, 2024, while the industry damage investigation period will cover the period from January 1, 2021, to December 31, 2024, the ministry said in an announcement.

Rubber probe

Tuesday's announcement also confirmed dumping practices in halogenated butyl rubber imports from Canada and Japan, with provisional anti-dumping measures imposed accordingly. However, the probe into Indian imports had been terminated in accordance with the law, due to minimal import volumes, MOFCOM said.

The rubber probe began after MOFCOM received a formal application from domestic producers on July 17, 2024, requesting an anti-dumping investigation into halogenated butyl rubber imports from the three nations.

An industry petition filed last year alleged that between April and September 2023, Canadian halogenated butyl rubber was dumped in the Chinese market at a margin of 40.5 percent, with material injury to domestic producers worsening over the investigation period, resulting in severe operational declines and heavy financial losses.

Both probes span one year, with the dumping review period covering January 1 to December 31, 2023, and the injury assessment period spanning January 1, 2021, to December 31, 2023, per notices from the ministry at the time.

Public records show that the Canadian government, industry associations, and major exporters submitted questionnaire responses and comments after the investigations began in September 2024, according to Tuesday's statement.

Halogenated butyl rubber is a high-end synthetic material mainly used in products such as tubeless air-tight layers, heat-resistant inner tubes, and pharmaceutical bottle stoppers. China is the world's largest consumer of halogenated butyl rubber.

Canada's protectionist measures opposed

Since last year, Canada has followed the US in rolling out a series of trade protectionist and restrictive measures against China — drawing strong dissatisfaction and firm opposition from China.

In the latest development, Canada's Department of Finance announced in July that, in response to US tariffs on steel and global overcapacity in the sector, it would expand tariff rate quotas on a wider range of imports and tighten existing quotas starting August 1, with surtaxes applied to imports exceeding the quota. A 25 percent surtax would also be imposed on imports from all countries except the US that contain steel melted and poured in China.

Zhou said that China's anti-dumping measures were implemented to protect the core interests of enterprises themselves, whereas Canada's actions reflect a politically motivated decision by the government.

The Canadian government unilaterally imposed tariffs on products containing Chinese steel components under the pretext of protecting its domestic industry. This action, Zhou said, violates WTO rules, disrupts international order, lacks legal justification, and represents a typical case of unilateralism and protectionism.

Last October, Canada raised tariffs on Chinese-made electric vehicles (EVs) from 6.1 percent to 106.1 percent, while steel and aluminum tariffs climbed to 25 percent starting October 15.

A MOFCOM spokesperson at the time warned that the move will destabilize global industrial and supply chains, seriously undermine the global economic system and economic and trade rules, and severely impact China-Canada economic and trade relations.