China's Ministry of Commerce has unveiled provisional anti-dumping measures targeting rapeseed and halogenated butyl rubber imports from Canada, following an investigation that indicated significant evidence of dumping and substantial injury to the domestic industry. This action aligns with Chinese law as well as World Trade Organization (WTO) regulations.

The investigation into rapeseed revealed substantial government subsidies and favorable policies in Canada's agricultural sector, particularly pertaining to rapeseed production. Such interventions have skewed market dynamics, leading to severe overcapacity conditions, prompting the Ministry's determination that these imports fall under 'special market conditions'.

In a decisive move, MOFCOM mandated that starting from August 14, 2025, importers of the scrutinized products must provide a security deposit to China Customs, reflecting the deposit rates identified in the preliminary determination. The rate for all Canadian exporters has been set at a striking 75.8 percent.

Responding to media queries, a MOFCOM spokesperson highlighted that the anti-dumping investigation into rapeseed imports was self-initiated. A subsequent investigation into imports of halogenated butyl rubber was implemented following local industry requests, which called for protective measures against foreign competition.

The investigations were conducted stringently within the frameworks of Chinese laws and WTO rules, emphasizing fairness and transparency. The preliminary findings confirmed dumping practices linked to injury suffered by domestic industries, establishing a direct causal relationship between these dumped products and the resultant harm.

Preliminary determinations have now set a dumping margin of 75.8 percent for Canadian rapeseed exporters, while halogenated butyl rubber exporters face margins ranging from 26.2 to 40.5 percent. These measures signify a critical step in protecting China's domestic industry from unfair trade practices.

This anti-dumping investigation reflects a legitimate trade response under WTO regulations, aimed at shielding domestic producers from low-priced imports. Analysts suggest that this investigation is fundamentally distinct from the Canada-imposed measures, which are regarded as retaliatory actions that violate international trade rules.

Historically, Canada has implemented an array of restrictive trade measures against China, mirroring the USD-driven protectionist policies that have exacerbated bilateral tensions. Recent developments include Canada's announcement of expanded tariff quotas on imports as part of a broader effort to manage domestic industries.

As the largest export market for Canadian rapeseed, China has seen a significant spike in imports, with Customs data indicating a staggering 170.37 percent increase in 2023 compared to 2022. This surge in imports has adversely impacted local rapeseed producers, leading to substantial losses.

In parallel, MOFCOM has also commenced an anti-dumping investigation into pea starch imports from Canada, adding to the list of products scrutinized. The evaluation period for this investigation will extend throughout 2024, while the assessment of industry damage will consider data from as far back as 2021.

The continuing scrutiny of imports, coupled with the broader context of geopolitical trade tensions, emphasizes the necessity for China to protect its domestic industries from what it perceives as unfair competitive dynamics imposed by foreign markets.