Prime Minister Mark Carney has traveled to South Africa for the G20 summit, which notably excludes the participation of the United States, the world’s largest economy. This move reflects a shift in the global order under U.S. President Donald Trump’s leadership.
Amidst growing uncertainty in its relationship with the U.S., Canada is expanding its connections with other nations. The country’s focus on strengthening ties with China requires a strategic approach to manage risks and enhance domestic stability.
Carney has initiated groundwork by engaging with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation summit in South Korea, describing it as a crucial moment in their relationship. Despite the delayed engagement with China, there are significant opportunities for Canada as Carney aims to double the country’s non-U.S. exports over the next decade.
While China is Canada’s second-largest trading partner, accounting for $30 billion in exports in 2024, this figure represents only a small portion of Canada’s total exports compared to the significant volume heading to the U.S. Analysts suggest that resolving trade disputes with China, such as removing tariffs on Chinese electric vehicles, could boost economic ties between the two countries.
In addition to trade, there are prospects for collaboration in areas like research and development, manufacturing, and services. Canada can benefit from China’s technological advancements by fostering partnerships in key sectors like electric vehicle production and battery manufacturing.
Furthermore, leveraging soft power through cultural exchanges and educational initiatives could strengthen Canada-China relations. Reopening group travel to Canada for Chinese tourists and exploring opportunities for aid to countries in the Indo-Pacific region are potential avenues for enhancing ties.
As Canada navigates its evolving relationship with China, policymakers must remain vigilant about potential risks, including human rights concerns and cybersecurity issues. Developing a well-rounded China strategy that addresses these challenges will be crucial for Canada’s future engagement with the country.
