Some Canadian politicians may not be aware that they are playing a dangerous game,in which the Canadian economy,particularly the country's auto industry,will suffer losses as a result of the irrational synergy with US protectionist trade policies.
Canada's Deputy Prime Minister and Finance Minister Chrystia Freeland said she is"absolutely"considering following the US move to ban vehicle hardware and software from China or Russia,CBC News reported on Wednesday.
Freeland's comments came after the US Bureau of Industry and Security announced on Monday a notice of proposed rulemaking to"prohibit the sale or import of connected vehicles integrating specific pieces of hardware and software…with a sufficient nexus to"China or Russia.
This is a typical example of trade protectionism.Chinese Foreign Ministry spokesperson Lin Jian said during a routine press conference on Monday that China opposes the US process of overstretching the concept of"national security"and taking discriminatory measures against relevant Chinese companies and products."China will firmly defend its lawful rights and interests,"Lin said.
China's determination to defend its lawful rights and interests should be noticed by not only the US,but also any other country that considers following the US moves against China.
It is not much of a surprise that the US may have hoped that Canada would align itself with Washington's actions.So,especially when the US is pushing toward this direction from the outside,it is necessary for Ottawa to maintain its strategic sobriety and stick to an independent industrial policy to safeguard Canada's own interests rather than working for Washington.Canadian politicians'strategic sobriety will help keep more room for the development of Canada's auto industry.
Electric vehicle(EV)production is accelerating globally,but Canada has been lagging behind some other major countries in EV sales and infrastructure.The North American country has one of the most severe winter climates in the world.As temperatures drop in winter,so does the range of an EV,which means that carmakers need to update their technology to meet challenges.
Fierce competition is the most effective way to promote constant technological renewal,with the rule of survival of the fittest.Fair competition between local companies and foreign enterprises will boost the auto industry in Canada.
However,it is regrettable that the country is going in the opposite direction.Canada,following the lead of the US,said in August it would impose a 100 percent tariff on imports of Chinese EVs,according to Reuters.
If Canada is indeed considering banning vehicle hardware and software from China,potential measures could further stifle fair competition,undermine investor confidence and impede growth in the auto sector.
Whether Canada bans Chinese hardware and software or not,it is anticipated to have only a limited impact on China's auto industry,because there is only a small amount of Chinese vehicle hardware and software deployed in Canada.If we analyze it from the economic perspective,the deterrence power of Canada's potential trade protectionism measures is limited.
The Canadian economy itself will be the biggest victim if the country loses its industrial policy independence and become a pawn in Washington's containment campaign against China's EVs industry.Obviously,it is not in line with Canada's economic interests.Canada may face growing pressure from the US.However,for many reasons,Canada should resist such pressure and adopt an independent industrial policy to promote its economic development.
The continuing growth in outbound investment by Chinese carmakers has reflected Chinese companies'efforts to expand production overseas,and Canada is one of the potential investment destinations.
Canada should fully utilize its complementarity with China,promote mutually beneficial cooperation in the EV sector,and handle competition properly,instead of giving up its policy independence.Such actions will inevitably harm its own economy and will only benefit the US in the end.
（Picture: Veer）
