Prime Minister Mark Carney is currently attending the G20 summit in South Africa, an event that notably excludes the world’s largest economy. This move by U.S. President Donald Trump is seen as part of a larger shift in the global order. As Canada looks to broaden its international connections due to an increasingly uncertain relationship with the U.S., the focus on establishing ties with China becomes crucial. Prime Minister Carney has taken initial steps towards this goal, including a significant meeting with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation summit in South Korea.
Despite the delayed engagement with China, there remains significant potential for Canada to enhance its trade relations with the country. While China stands as Canada’s second-largest trading partner after the U.S., the current exports to China constitute only about five percent of Canada’s total exports, a stark contrast to the approximately 75 percent of exports directed southward to the U.S.
Experts believe that resolving the ongoing trade disputes, including the removal of tariffs on Chinese electric vehicles, could facilitate this process. The imposition of counter-tariffs by China on Canadian goods has had significant economic repercussions, prompting calls for a resolution to the trade tensions. By exploring opportunities in various sectors such as natural resources, agriculture, and technology, Canada aims to diversify its trade portfolio and strengthen its economic standing.
In addition to trade, there are prospects for collaboration in research and development, manufacturing, and services between Canada and China. With China’s advancements in technology, particularly in areas like electric vehicles and AI, forging partnerships rather than competing directly could prove beneficial for both countries.
Soft power initiatives, such as cultural exchanges and educational partnerships, are seen as effective ways to cultivate stronger ties between Canada and China. Leveraging these avenues, along with potential collaborations in areas like aid to Indo-Pacific countries, could further enhance Canada’s global influence. However, analysts caution that navigating the complexities of the Chinese system, including human rights and cybersecurity concerns, will be essential in formulating a comprehensive China strategy.
As Canada continues to navigate its evolving relationships on the global stage, maintaining a balanced approach that considers both opportunities and risks will be crucial in charting a successful path forward.