China has announced a probe of Canadian canola imports, a week after Canada said it would impose new border taxes on Chinese-made electric vehicles, steel and aluminium.
The move, which could lead to tariffs on a key Canadian export, escalates the trade fight between the two countries.
Canada did not immediately respond to the announcement of the investigation.
Beijing also said it would file a complaint with the World Trade Organization over the EV tariffs, which it criticised as “discriminatory” and “unilateral”.
“China’s position is clear-cut.
The country will take all measures necessary to safeguard the legitimate rights and interests of Chinese companies,” a spokesperson for the Chinese Ministry of Commerce said in announcing the measures.
Canola, also known as rapeseed, is a major agricultural product in Canada, accounting for roughly one-quarter of all farm crop receipts, according to the Canola Council, an industry group.
Canada exports more than 90% of its canola, which is sold as raw seed, oil, or meal and is used for cooking, animal feed and some forms of energy, according to the council.
China’s imports of Canadian canola were worth roughly $C5bn ($3.7bn;£2.8bn) last year, making the country the second biggest market after the US.
It has been the target in previous trade disputes.
Beijing blocked exports from two major Canadian grain companies for three years citing pest concerns, following the 2018 arrest in Vancouver of Chinese businesswoman Meng Wanzhou, chief financial officer of the tech firm Huawei.
The latest tit-for-tat comes as a rising number of governments, including the US and European Union, erect barriers against Chinese-made electric cars.
In announcing the tariffs last week, Canadian Prime Minister Justin Trudeau said countries such as China had “chosen to give themselves an unfair advantage in the global marketplace”.
Western countries allege that Chinese firms are benefiting from subsidies and other government help, allowing for “dumping”, which is when product is sold below cost, making it difficult for other firms to compete.
China cited similar dumping complaints in its probe of Canadian canola oil, noting that imports had jumped 170% since 2023, while prices had “continuously fallen”.
“Affected by the unfair competition of the Canadian side, China’s domestic rapeseed-related industries continued to suffer losses,” the ministry said.
China has also launched investigations of European pork and dairy products.
It recently declined to impose tariffs on French cognac, despite alleged dumping.
