Prime Minister Mark Carney is currently attending the G20 summit in South Africa, a significant event that is notably being avoided by the United States, the world’s largest economy. This move by U.S. President Donald Trump reflects a shifting global order.
Canada is adapting by diversifying its international relationships, especially with China, as its ties with the U.S. become less reliable. Prime Minister Carney has initiated efforts to strengthen ties with China, as shown by his recent meeting with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation summit in South Korea.
While Canada aims to double its non-U.S. exports in the next decade, there is room for growth in trade with China. Despite China being Canada’s second-largest trading partner after the U.S., Canadian exports to China are only about five percent of the total, compared to approximately 75 percent going to the U.S.
To enhance trade with China, experts suggest resolving trade conflicts such as the tariffs on Chinese electric vehicles. The current trade war has resulted in counter-tariffs on Canadian products by China, impacting industries like canola, seafood, and pork. Analysts believe that ending this trade dispute could open up new opportunities.
In addition to trade, there are prospects for collaboration in research and development, manufacturing, and services with China, a leader in technology. Experts argue that partnering with China in areas like electric vehicle production and AI could benefit Canada’s economy.
Soft power, such as cultural exchanges and educational partnerships, can also strengthen ties between Canada and China. The two countries share economic synergies that could lead to mutual benefits across various sectors, including education and tourism.
As Canada navigates its evolving relationship with China, analysts emphasize the importance of balancing risks, including concerns about human rights and cybersecurity. Crafting a strategic approach to engagement with China will be crucial for Canada’s future relations with the country.