Prime Minister Mark Carney is currently attending the G20 summit in South Africa, where notable absence of representation from the world’s largest economy speaks volumes about shifting global dynamics. As Canada looks to broaden its international partnerships amid a strained relationship with the U.S., particularly focusing on China, a strategic approach is essential to manage risks and bolster domestic strength.
Carney has taken initial steps towards this goal, highlighted by his recent meeting with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation summit in South Korea. Emphasizing the significance of this encounter as a pivotal moment in their relations, Carney aims to double Canada’s non-U.S. exports over the next decade, signaling potential opportunities for growth.
While China stands as Canada’s second-largest trade partner after the U.S., accounting for around $30 billion in Canadian exports in 2024, this figure represents only a small portion of the country’s total exports compared to the significant share going southward. To diversify and expand trade with China, experts suggest resolving trade disputes, such as removing the 100% tariff on Chinese electric vehicles, a move currently under review by the Canadian government.
The ongoing trade tensions have led to retaliatory measures from China, impacting various Canadian sectors significantly. Experts argue that resolving these conflicts is vital, especially as the U.S.-Canada relations deteriorate, making cooperation with China increasingly appealing.
Beyond trade, there are opportunities for collaboration in areas like research and development, manufacturing, and services to strengthen ties with China. With China’s technological advancements, Canada may benefit from working together rather than competing fruitlessly.
Amid efforts to fortify its economy post-Trump era tariffs, Canada is exploring avenues for cooperation with China in critical areas such as mining and renewable energy. Leveraging China’s expertise in these sectors could help Canada meet its environmental goals and enhance economic ties.
Soft power, including cultural and educational exchanges, presents another avenue for fostering relationships with China. Reviving initiatives like facilitating Chinese group tours to Canada and exploring aid opportunities in the Indo-Pacific region can help bolster ties and expand mutual benefits.
As Canada navigates its evolving relationship with China, analysts emphasize the importance of maintaining a cautious approach, considering the fundamental differences in governance and potential challenges like human rights concerns. Crafting a nuanced China strategy will be crucial in managing risks and maximizing opportunities for both nations.
