Canadian Finance Minister Chrystia Freeland stated that these measures aim to ensure fair conditions for local industries, addressing concerns over overcapacity and lax standards in China.

In response to Europe's recent decision to impose increased tariffs on electric vehicles from China, the Canadian government is also taking action to protect its domestic market.

Officials clarified that Canada's tariff decision was not solely influenced by U.S. pressure, as the issue had been under review for several months.

Marco Mensink, director general of Cefic, pointed out that companies are advocating for more effective anti-dumping measures to safeguard European competitiveness against China and the U.S.

Sullivan highlighted the necessity of a united front among Western nations to tackle the challenges posed by China's trade policies.

Borrell warned of a potential trade war between China and other global powers, stressing the importance of the EU acting independently from U.S. interests.

The ongoing investigations reflect broader concerns regarding fair trade practices and market competition between China and Europe.

The anti-dumping investigation into dairy products is expected to last up to one year, with a possible six-month extension, and may result in surtaxes if unfair practices are found.

Investors are advised to keep an eye on Chinese automotive brands like BYD and XPeng as they attempt to penetrate the Canadian market amid these evolving trade dynamics.

Chinese car brands, including BYD, are looking to enter the Canadian market, although they remain relatively uncommon in the region.

China's economic growth has been significantly supported by exports and subsidies, particularly following its accession to the WTO in 2001.

Under President Xi Jinping, China's leadership has shifted focus towards national security, often at the expense of adhering to international trade norms.