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ARTICLE · 16 JULY 2024

Is Canada Pulling The Plug On Chinese Electric Vehicles?

The Canadian government has prioritized the promotion of the domestic electric vehicle (EV) industry, with the objective of establishing Canada as a leader in the global end-to-end EV supply chain.

GlobalTransport

Background

The Canadian government has prioritized the promotion of the domestic electric vehicle (EV) industry, with the objective of establishing Canada as a leader in the global end-to-end EV supply chain. This effort includes providing financial support and tax credits to manufacturers of EVs and inputs for EVs (e.g., batteries and components such as cathode active materials and precursors), as well as incentives to consumers to purchase EVs. The government views EVs as a strategic element of its plan to build an environmentally "clean future" for Canada.

The government is concerned, however, that its plans for the Canadian EV industry may be threatened by what it terms "unfair competition" from China, which it alleges is creating a global oversupply of EVs. Specifically, the government is concerned that China is using a broad range of "non-market policies and practices" to generate a global oversupply of EVs that will erode the profit incentives of EV

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