World

China’s Canola Shift: How Beijing Navigates Trade Disputes and Reshapes Global Supply Chains

China buys Australian canola, replacing some imports from Canada after anti-dumping duties.

byAndres Castro

September 19, 2025, 11:35 PM

An aerial view of a cargo ship being loaded with grain at a port

An aerial top view of a cargo ship being loaded with grain, preparing for its departure from a port. By MDL.

Executive Summary

Chinese state trading firm COFCO has purchased up to nine 60,000-metric-ton cargoes of Australian canola, totaling approximately 540,000 tons.

The purchases come after Beijing imposed 75.8% preliminary anti-dumping duties on Canadian canola imports, significantly impacting shipments from its traditional primary supplier.

This shift signals China’s ability to diversify its canola sourcing for the crucial oilseed, highlighting the fluidity of global agricultural trade and the impact of geopolitical relations.

The Story So Far

China, the world’s largest canola importer, has historically relied on Canada but recently imposed significant anti-dumping duties on Canadian imports amidst ongoing diplomatic and trade tensions, forcing it to seek alternative suppliers. This pivot comes as Australia, which had faced restrictions in the Chinese market since 2020 due to biosecurity rules, has recently neared an agreement with Beijing for trial cargoes, paving the way for renewed trade and offering China a new source for the crucial oilseed.

Why This Matters

China’s significant purchase of Australian canola, following anti-dumping duties on Canadian imports, signals a strategic diversification of its crucial oilseed supply amidst ongoing geopolitical tensions, profoundly impacting Canada’s historical dominance in the Chinese market and illustrating how trade disputes can rapidly reconfigure global agricultural commodity flows.

Who Thinks What?

China is strategically diversifying its canola imports by purchasing significant volumes from Australia, following the imposition of anti-dumping duties on Canadian canola and ongoing trade tensions.

Canada is experiencing a virtual standstill in its canola exports to China, traditionally its primary market, due to Beijing’s anti-dumping duties and an extended investigation into its shipments.

Australia is benefiting from a shift in China’s sourcing, securing large canola orders after previous biosecurity restrictions were reportedly eased, positioning itself as an alternative supplier.

Chinese state trading firm COFCO has reportedly purchased up to nine 60,000-metric-ton cargoes of Australian canola, totaling approximately 540,000 tons. This move comes after Beijing imposed preliminary anti-dumping duties of 75.8% on Canadian canola imports last month, significantly impacting shipments from its traditional supplier amidst ongoing diplomatic and trade tensions between China and Canada.

Shifting Trade Dynamics

The purchases, scheduled for loading between November and January, represent about 8% of China’s total canola imports from the previous year. This signals China’s ability to diversify its sourcing for the oilseed as trade negotiations with Ottawa continue.

Canada has historically been China’s primary canola supplier for several years. However, Australia, while the world’s second-largest exporter after Canada, is a smaller producer and may face challenges in matching the volumes previously supplied by Canada.

Background on Trade Disputes

Beijing’s anti-dumping probe into Canadian canola has led to a virtual standstill in shipments. Earlier this month, China extended its investigation into Canadian canola imports until March 9, 2026, granting an additional six months for negotiations before a final ruling on the duty rate.

Australia itself had faced restrictions in the Chinese market since 2020 due to biosecurity rules aimed at preventing the spread of a fungal plant disease. However, reports in July indicated Canberra was nearing an agreement with Beijing for trial cargoes, paving the way for these recent purchases.

The Canola Market

Canola, also known as rapeseed, is a crucial agricultural commodity. It is crushed to produce cooking oil, with the residual meal used as livestock feed.

China stands as the world’s largest canola importer, having purchased 6.4 million tons valued at $3.4 billion last year, with nearly all of it originating from Canada, according to Chinese customs data.

Key Takeaways

China’s recent acquisition of Australian canola highlights its strategic efforts to secure alternative supplies amid ongoing trade disputes with Canada. This shift underscores the fluidity of global agricultural trade and the impact of geopolitical relations on commodity markets, particularly for key imports like canola.