Freeland vows to fight China on EVs

Ottawa to launch consultations ahead of response to Beijing’s plan to overproduce vehicles

- ALEX BALLINGALL

Deputy Prime Minister Chrystia Freeland said the federal government is opposed to fuelling the green transition with cheap electrical vehicles built with lower labour and environmental standards.

OTTAWA Deputy Prime Minister Chrystia Freeland alleged Monday that China is threatening Canadian workers by unfairly cranking out cheap electric vehicles, and vowed that the Liberal government will act to defend Canada’s nascent — and heavily subsidized — EV sector.

Speaking at a factory in Vaughan on Monday, Freeland said the government will launch 30 days of consultations on July 2 before deciding how to respond to China’s “intentional, state-directed policy” of overproducing EVs. She accused Beijing of “taking advantage of the global economic system” by using “very problematic” standards to produce cheap EVs to dump on the world market and undermine Canada’s potential to compete in the growing global clean car industry.

The measures under consideration include a special measure to slap a surtax on Chinese-made EVs, changes to which cars are eligible for the $5,000 federal EV purchase rebates, and “broader” restrictions on investment in Canada, Freeland said.

The Chinese embassy did not respond to a request for comment.

“We are going to protect you and defend you from unfair competition, and I want you to know that,” Freeland, who is also Canada’s finance minister, told a room of workers Monday morning.

While Freeland declined to say whether Canada plans to join U.S. President Joe Biden’s new tariff wall against Chinese EVs, she said “nothing is ruled out and all possible tools are on the table” — including higher tariffs.

“We certainly see the need to be very strong in our defence of Canada and the national economic interest,” she said.