Beijing has “an intentional, state-directed economic policy” to produce excessive quantities of steel, aluminum, critical minerals and manufactured goods, Finance Minister Chrystia Freeland said Tuesday. “We cannot let Canadian industry be wiped out by Chinese oversupply and overcapacity.” (The Logic)

Talking point: G7 governments have long raised concerns about market-distorting subsidies fuelling production to flood markets and capture share. This month, the U.S. announced plans to hike tariffs on Chinese electric vehicles, critical minerals and chips; Washington and Ottawa are offering incentives to encourage those sectors at home. Freeland said the Liberal government is reviewing existing measures to combat Chinese industrial actions, although she did not say whether that would include tariff changes. While Canada has a network of G7 trade deals, it “will not be a country through which there can be trans-shipment” to avoid U.S. levies, she said.