The Ministry of Commerce Photo: VCG

China's Ministry of Commerce announced that it commenced from Thursday an anti-discrimination investigation into Canada's tariff hikes on electric vehicles (EVs) as well as steel and aluminum products imported from China, after initial results have unveiled such discriminatory approach.

The investigation has commenced in accordance with the Article 36 and Article 37 of China's Foreign Trade Law, MOFCOM announced, noting that the investigation will typically last for three months and can be extended under special circumstances, according to a statement posted on its website on Thursday.

According to Xinhua News Agency, it is the first such investigation initiated by China and also the first of its kind in the world.

Stakeholders can submit the comments in written form within 30 days of the commencement of the probe and written request for a hearing can be submitted within 20 days from when the probe is launched.

The Article 7 of China's Foreign Trade Law clearly stipulates that in the event that any country or region applies prohibitive, restrictive or other like measures on a discriminatory basis against China in respect of trade, China may, as the case may be, take measures against the country or region in question. The Article 36 of China's Foreign Trade Law states that the authority responsible for foreign trade under the State Council may conduct investigation with regard to relevant matters, including the matter that requires investigation for implementing Article 7.

The step taken on Thursday is a follow-up of measures outlined by MOFCOM on September 3, when it said "China's attitude is clear-cut and it will take all necessary measures to defend the legitimate rights and interests of Chinese companies."

In addition to launching an anti-discriminatory probe, measures detailed then include plans to initiate dispute settlement proceedings at the WTO, which China did on September 6 by requesting consultation over Ottawa's tariff hikes.

On September 9, MOFCOM also initiated an anti-dumping investigation into imports of rapeseed from Canada, citing initial evidence that Canada's dumping practices have caused substantial harm to China's domestic industry.

After announcing its decision to impose hefty additional tariffs on Chinese products, including EVs, steel and aluminum, Canada on September 10 moved to escalate the trade row by announcing a 30-day public consultation to study the need for additional tariffs on more Chinese products including batteries, semiconductors and critical minerals.

Amid Canada-provoked trade tensions which Chinese experts said have negatively impacted bilateral ties, trade between China and Canada dropped by 0.5 percent year-on-year in the first eight months this year to $57.66 billion, reversing the 2.4 percent growth seen in the first seven months, customs data showed in earlier September.