Disclaimer: The content of this article is written with reference to network materials combined with personal views, please be aware.
Canada's Deputy Prime Minister Chrystia · Freeland announced at a news conference that Canada will begin 30-day consultations on whether to impose tariffs on batteries and their components, semiconductors, critical minerals and metals, and solar products imported from China.
At the end of August, Canada just announced tariffs on Chinese electric vehicles, steel and aluminum products, and China immediately launched an anti-dumping investigation against Canada's rapeseed and chemical products, and this trade war does not seem to stop there, but is intensifying.
Freeland's remarks in the "unfair competition" has become an excuse for Canada to once again wield the trade stick, the current situation in the international semiconductor field China is just the passive beaten side, Netherlands recently adjusted the lithography machine export policy to prohibit ASML from exporting advanced lithography machines to China, this move is undoubtedly naked trade discrimination.
The positions and motivations of all parties in this international trade game are complex, United States the attitude of the world's largest economy is particularly interesting, and since May, the United States Office of the Trade Representative has been weighing whether to invoke Section 301 to impose tariffs on China, a decision that has been repeatedly postponed in late July and late August.
Harris, the candidate nominated by the Democratic Party of United States, recently expressed her opposition to Trump's plan to impose tariffs in a public debate, and as Biden's vice president, her remarks reflect the attitude of the current administration, and Harris's view that tariffs will ultimately hurt the interests of the middle class in United States is quite insightful.
Canada seems to have chosen a path that runs counter to United States, and the Trudeau government's decision to impose tariffs on China at the expense of its middle class is really puzzling, and whether it is a political consideration or an ulterior motive is worth pondering.
Canada was once a well-deserved geopolitical power, its per capita GDP once surpassed United States in the last century, playing an important role in the international arena, after entering the 21st century, Canada's international status seems to be declining, even the once proud ace enterprise Bombardier has not been spared and was eventually divided by many countries in Europe and the United States.
The Trudeau government seems to have lost its way in this international trade wrestling, and has it really been clear who is a friend and who is an adversary? It is incomprehensible that United States security adviser Jake Sullivan is impatient to act as a "trade war vanguard" just because of a visit.
In 1970, Canada took the lead in establishing diplomatic relations with China, creating a precedent for Western powers to establish diplomatic relations with China, which reflects Canada's diplomatic wisdom and laid a good foundation for the development of bilateral relations, but now Canada seems to have forgotten this history and chosen a path contrary to the trend of history.
In the face of Canada's aggressiveness, the spokesperson of the Ministry of Commerce of China showed China's position in his statement, urging Canada to respect the facts, abide by WTO rules and not make mistakes again and again, and also made it clear that China will pay close attention to Canada's follow-up trends and take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises.
This statement not only shows China's principled position, but also shows China's mature attitude in international trade disputes, "China does not want to fight a trade war, but is not afraid to fight", this sentence shows China's confidence and determination in the face of international trade frictions.
In today's globalized trade war, it is never a good solution to the problem, it will hurt both sides and have a negative impact on the global economy, the total trade between China and Canada in 2023 will reach 103.43 billion US dollars, a year-on-year increase of 3.7%, of which China's exports to Canada are 67.86 billion US dollars, and imports from Canada are 35.57 billion US dollars, behind these figures are the livelihoods of countless enterprises and families.
Canada really imposed tariffs on Chinese batteries, semiconductors and other products, the first victims will be Canada's consumers and enterprises, China is the world's largest producer and exporter of electric vehicles, Canada if China electric vehicles impose high tariffs, will inevitably lead to domestic electric vehicle prices, not only contrary to the Canada government's policy of vigorously developing clean energy, but also damage the interests of Canada consumers.
In the semiconductor industry, China still has a gap in high-end chip manufacturing, but it has occupied an important position in low-end chips and semiconductor materials, and if Canada imposes tariffs on Chinese semiconductor products, it will increase the cost of its own electronic products and may also affect Canada's position in the global semiconductor industry chain.
Canada's move could also trigger a ripple effect, and if other countries follow Canada's example, the global trading system will face serious challenges, which is undoubtedly a powerful medicine in the current context of global economic uncertainty.
Trade wars are often lose-lose, and the Smoot-Hawley Tariff Act introduced by the Hoover administration in United States in the 1930s is a classic example of the negative teaching, which dramatically raised import tariffs, but instead of protecting United States industry, it triggered a global trade retaliation that eventually exacerbated the severity of the Great Depression.
The Trudeau government chose to launch a new round of tariff war against China at this time, which is really confusing, and some analysts believe that Trudeau's move may be to win support in domestic politics, Canada will hold a general election in 2025, and Trudeau may hope to win the favor of voters by being tough on China, and this short-sighted political calculation may have a long-term negative impact on the Canada economy.
While Canada prepares to launch a new tariff war against China, other Western countries have shown relative restraint, and the Biden administration of United States has been wary of China in some areas but cautious on trade issues, a contrast that makes people wonder if Canada is in a hurry.
China and Canada share a wide range of common interests, and both countries have great potential for cooperation in areas such as climate change, clean energy, and scientific and technological innovation, and a trade war could undermine these potential opportunities for cooperation and potentially trigger broader geopolitical repercussions.
On the development and governance of the Arctic region, China and Canada were expected to have fruitful cooperation, Canada as an Arctic country has rich experience and resources, and China as a "near-Arctic country" also has unique advantages in scientific research and funding, if the two countries are mired in a trade war, this cooperation is likely to run aground.
Canada has always been known for its multiculturalism, Chinese culture also has a wide influence in Canada, from Vancouver's Chinatown to Toronto's Chinese Arts Festival, China-Canada cultural exchanges have injected vitality into the relationship between the two countries, if the trade friction continues to escalate, this people-to-people exchange is likely to be affected, which is a loss for the people of both countries.
In today's globalized world, no country is immune to it, and China and Canada, as important economies, should work together to address global challenges, whether it is to address climate change or promote world economic recovery, China-Canada cooperation has great potential.
The Trudeau government seems to have ignored these long-term interests and chosen a short-sighted path, reminiscent of the old saying: "Those who see profit and forget righteousness are mostly villains." "In international relations, excessive pursuit of short-term interests and neglect of long-term development often comes at a high price.
In this trade dispute, whether Canada really wants to protect its own industry or simply wants to brush its presence on the international stage, if it is the former, then the Canada government seems to ignore an important fact, in the globalized world the industrial chain has been highly integrated, simple tariff barriers can not really protect the domestic industry, it is likely to disrupt the global supply chain, and ultimately hurt its own enterprises and consumers.
Just as Canada prepares to launch a new tariff war against China, China is actively promoting high-level opening up, and the third China International Consumer Products Expo will be held in Hainan, known as the "Pearl of the Orient", which attracts more than 1,700 brands from more than 60 countries and regions around the world, this open attitude is in stark contrast to Canada's protectionism.
Openness is the way to prosperity, Shenzhen, a small fishing village, has developed into an international metropolis in just 40 years after the reform and opening up, those countries that choose to be closed often lag behind in development, Canada, as a traditional trading power, has forgotten the importance of free trade?
The response of China's Ministry of Commerce at this delicate moment is particularly interesting, as it did not choose to go-for-tat but responded with reason and restraint, a mature diplomatic gesture that reflects the bearing of a great power.
While Canada prepares to impose tariffs on Chinese products, many Canada companies are actively seeking cooperation with China, and Nutrien Ltd., one of Canada's largest agricultural companies, is considering establishing a fertilizer production base in China, a contradiction that may shed some light on the Trudeau government.
As important economies, China and Canada can cooperate in a broader field, and both countries have rich experience and technology in addressing climate change and developing clean energy.
The Canada government needs to carefully consider whether to continue to move towards the dead end of trade protectionism or to regain the wisdom of openness and cooperation, which historically can bring prosperity and cooperation can develop together.
China and Canada have a long history of friendly exchanges, and I believe that as long as the two sides uphold the principle of mutual benefit and win-win results, they will be able to find a good way to resolve their differences. What do you think of this Sino-Canadian trade dispute, who will be the winner or lose?
Resources:
2024-09-12 12:09· Wang and China's sanctions have been fruitless? Canada will attack China again and will add a second round of tariffs, and the Ministry of Commerce responded
(Disclaimer) The process and pictures described in the article are from the Internet, and this article aims to advocate positive social energy and no vulgar and other bad guidance. If it involves copyright or character infringement issues, please contact us in time, and we will delete the content as soon as possible! If there is any suspicious part of the incident, delete or change it immediately after contacting!