Canada Maintains Trade Status with China, Debunks False Claims

Recent social media posts in Chinese have falsely claimed that Canada was among 32 countries that revoked China’s “most favoured nation” trade status as of December 1. This misinformation has resurfaced from a 2021 rumor that conflated the concept of most favoured nation (MFN) status with the “generalized system of preferences” (GSP) certificates, which China ceased issuing to Canada and other nations on that date.

Understanding Most Favoured Nation Status

The term “most favoured nation” refers to a fundamental trade principle under which trading partners are entitled to equal treatment. Member countries of the World Trade Organization (WTO) are required to extend the same trade benefits to all member nations, with certain exceptions. The recent claims, disseminated on platforms like X (formerly Twitter) and Facebook, suggest that Canada has removed this critical status from China.

Initial investigations reveal that similar assertions have circulated previously. A keyword search indicates that the claim originated from a 2021 Facebook post reported by HKBU Fact Check, which made the same allegation about the status change occurring on December 1.

Clarifying the Facts

A deeper examination of the situation reveals the source of confusion. The General Administration of Customs China announced it would stop issuing GSP certificates of origin for goods exported to 32 countries, including Canada and the European Union. These GSP certificates allow for preferential tariffs on imports from developing nations according to WTO regulations.

China’s customs agency clarified that some countries had gradually revoked their GSP treatment for China due to its rapid economic development, which disqualified it from low-income status. This decision to stop issuing GSP certificates took effect on December 1, 2021, but it does not affect the MFN status that China holds with Canada.

Canada has maintained its MFN status with China, ensuring continued equal treatment in trade relations. In contrast, Canada did revoke MFN status for Russia and Belarus on March 2, 2022, in response to the Russian invasion of Ukraine, imposing a general tariff of 35 percent on most goods from those countries. An exception was made for cobalt-60, a radioactive isotope critical for certain medical applications, due to sourcing difficulties.

The misinformation surrounding Canada’s trade relationship with China underscores the importance of verifying claims before sharing them on social media. Accurate information is crucial for understanding the complexities of international trade and maintaining diplomatic relations.

This report was compiled with contributions from Nono Shen and first published by The Canadian Press on December 11, 2025.