Canada’s auto sector is raising alarm bells over Ottawa’s decision to open the door to Chinese electric vehicles, warning the move could undercut domestic manufacturing and cost jobs.Blacklock's Reporter says executives from General Motors Canada told MPs that new federal concessions allowing thousands of low-tariff Chinese electric vehicles into the country risk weakening Canada’s industrial base and “hollowing out” its skilled workforce.Sarah Goldfeder, the company’s executive director of government relations, said the policy shift reverses earlier protections and exposes Canadian workers to unfair competition from heavily subsidized foreign producers.“Unfettered access, even if limited by quotas, will weaken Canada’s ability to protect its people, its national interests and its automotive industrial and technology base,” she said during testimony before a Commons committee.The warning follows a major policy reversal by the federal government. .After imposing a 100% tariff on Chinese electric vehicles in 2024 over concerns about unfair trade practices, Ottawa scrapped the measure earlier this year, replacing it with a quota system allowing up to 49,000 vehicles to enter Canada, with annual increases of 6.5%.Goldfeder noted the scale of the quota could dramatically reshape the market, pointing out that 49,000 vehicles would represent roughly one-third of Canada’s current EV sales. She added that demand for electric vehicles has not met expectations, further intensifying competition.Conservative MP Tony Baldinelli, a former autoworker, questioned the logic of opening the market during a downturn, citing billions in recent industry write-offs.He also pressed whether GM has similar access to China’s market.“No,” Goldfeder replied, adding that China maintains strict protections for its domestic industry.Other manufacturers echoed the concern. Pacific Manufacturing Association of Canada, which represents companies including Honda and Toyota, warned the quota system could undermine long-term stability in Canada’s auto sector..CEO Brendan Sweeney said while engagement with China is possible, allowing large volumes of imports into a soft market is not the right approach.The association noted its members account for roughly 77% of vehicle production in Canada, underscoring the stakes for domestic manufacturing.Industry leaders argue that opening the market to state-backed competitors without equivalent access abroad risks eroding Canada’s automotive base and discouraging future spending in the sector.
