A year-long anti-dumping investigation into American goods of rape was revealed on Monday by the Chinese Ministry of Commerce.  ,
” Canada has ignored WTO ( World Trade Organization ) principles and violated its pledges at the WTO”, said a department spokeswoman, adding that authorities had “requested sessions” with their American counterparts over the problem.  ,
The spokesperson said,” This is a classic unilateral and trade protectionist act that seriously harms the rules-based multilateral trading system and disrupts global industrial and supply chains for ( Chinese ) EVs as well as steel and aluminum products.  ,
According to economist Dr. Chen, Canada’s business laws will continue to closely resemble those of the US.  ,
” Canada will only appear to the US.”” If the US does actually lower some of the sentence tariffs imposed on Chinese EVs and another imports, even Canada will do the same.” Otherwise, Canada will be just as strong as the US on China” . ,
Commenting on the condition, Ms Garcia-Herrero expressed concerns about Beijing’s activities.  ,
China” ca n’t use retaliation as strictly or as powerfully as it thinks,” she said, noting that Beijing may have also played a role in previous trade disputes and tensions with the US, Australia, and South Korea.
For example, China in 2020 had imposed restrictions and obligations on American goods, when political disputes with Australia turned into a full-blown business war.  ,
Despite ending the three decades of punishing levies and removing the last remaining taxes on wine in March, producers may not want to put all their hopes on a seemingly attractive industry in the near future.
” China thinks it has a lot of leverage, but it backfires because states start fearing China, and so they want to de-risk”, she said.  ,
Many of the damaged American companies have found new areas in nations like Vietnam, Indonesia, and Thailand despite China’s business measures causing significant declines in American exports of the intended goods.
And a Beijing response that is too stern could backfire, adding to” the West’s populist outlook on China” and” a great level of fear of China,” according to Mr. Daniel Senger, managing partner at the Shanghai-based international consulting firm Wilton Partners. That adds to “impulsive” reactions when it comes to laws on China, specifically from politicians seeking company, he noted.
China believes its EVs are badly treated and contrary to WTO regulations because they represent” a comparative advantage in terms of lower price and higher style” over what the West has to offer, he told CNA.  ,
Beijing appears to know that some industry partners, especially those in developed nations, were extremely hostile and perhaps resent their wolf warrior diplomacy. ”  ,
According to Chinese Foreign Ministry spokesperson Mao Ning on August 22, the EU may work with China “in the same way to discuss a proper negotiation and avoid escalations,” while the China Chamber of Commerce has stated that such measures may increase trade tensions between China and the EU and give a bad signal to international cooperation and natural development efforts.
Mr. Senger suggests that there might be a middle ground between allowing lower-end, cheap Chinese electric vehicles that Europe and North America could not possibly make financially and boosting China’s production in Europe.
So Beijing would be careful this time round and might even adopt a” milder “approach, says SMU’s Mr Gao.
A SILVER LINING FOR SOUTHEAST ASIA?  ,
According to analysts, any trade war between China and the West would unavoidably have repercussions, and Southeast Asia would be one of the countries that would seek to profit from it.  ,
China has been the region’s largest trading partner for 14 consecutive years, and trade between the nations reached record highs of US$ 722 billion in 2022.  ,
Southeast Asian nations might benefit in a number of ways.  ,
” The first is to capture spillover volume ( from China ) at low prices,” said Mr Warwick Powell, an adjunct professor at the Queensland University of Technology.  ,
The second is that Chinese businesses may start expanding their presence in the area as a platform for exporting to the EU and North America. This has been the pattern already.”
In the wake of a potential tariff war, the region could experience both positive and negative effects.  ,
The natural choice, or the simplest choice, would be Southeast Asia, according to Dr. Chen, if the sanctions against China are so severe that they will force more Chinese and foreign capitals with existing ones to relocate some of their production capacities abroad.  ,
According to law professor Mr. Gao, new Chinese EVs could also be exported from these Southeast Asian nations to the EU and the US.
However, this might also present challenges for regional EV manufacturers, who may struggle to compete.  ,
Chinese manufacturers accounted for 70 % of all EV sales in Southeast Asia last year, with automaker BYD holding the lead, according to Hong Kong-based Counterpoint Research.
VinFast Auto, a Vietnamese manufacturer of electric vehicles, is struggling to gain ground in the fiercely competitive EV market. It delivered just 9, 689 cars in the first three months of the year, well off the pace to meet its annual 100, 000 target. Last year, some 34, 855 vehicles were sold, most of which went to related parties.
China is also facing regional opposition, despite its efforts to pivot and direct more exports to Southeast Asian nations.
Indonesia, a growing global powerhouse and Southeast Asia’s largest economy, has been eyeing heavy duties on textile imports. Thailand has also expressed concern about the recent influx of cheap goods from China, claiming that rival industry organizations have struggled.
In August, Malaysia launched its own anti-dumping investigations into imports of Chinese plastic, including polyethylene terephthalate imports.
The government’s Ministry of Investment, Trade, and Industry stated in a statement released on August 9 that” the government will impose a provisional anti-dumping duty at the rate necessary to prevent further harm to the domestic market.”