China plans to resort to the WTO dispute settlement mechanism against Canada's practices and will launch the world's first anti-discrimination investigation.

China will take countermeasures against Canada after the latter unveiled plans last month to impose an additional 100 percent tariff on Chinese electric vehicles (EVs).

China is strongly dissatisfied with and resolutely opposes Canada's discriminatory unilateral restrictive measures on imports from China despite opposition and discouragement from many sides, a spokesperson for China's Ministry of Commerce (MOFCOM) said in a question-and-answer session today.

China plans to resort to the World Trade Organization (WTO) dispute settlement mechanism against Canada's practices, the spokesperson said.

The country will also launch an anti-discrimination investigation against the restrictive measures taken by Canada, and will then take corresponding measures against Canada according to the actual situation, according to the Q&A on tariffs against Chinese EVs.

Some Chinese state media outlets reported that this would be the world's first anti-discrimination investigation.

In addition, according to recent feedback from domestic industry participants in China, there has been a significant increase in Canadian canola exports to China and is suspected of dumping, the spokesperson said.

The amount reached $3.47 billion in 2023, a 170 percent year-on-year increase in volume, with prices continuing to fall, the spokesperson added.

China's domestic industries continue to lose money due to unfair competition from Canada, the spokesperson said.

China will launch an anti-dumping investigation into imports of canola from Canada in accordance with domestic laws and WTO rules, according to the spokesperson.

The country will also launch an anti-dumping investigation into Canadian chemical products in accordance with domestic industry applications.

China's attitude is clear, and it will take all necessary measures to defend the legitimate rights and interests of Chinese enterprises, the spokesperson said.

Canada's Department of Finance announced on August 26 that starting October 1, 2024, it will impose an additional 100 percent tariff on all EVs made in China.

Currently, the tariff applied to EVs made in China when exported to Canada is 6.1 percent. When the additional tariffs come into effect, the rate they face will rise to 106.1 percent.

Canada's move follows the lead of the United States and the European Union -- who have already announced additional tariffs on EVs from China.

Tesla asked Canada for lower tariff rate on its China-made EVs, report says