Canadian exports to China experienced a significant surge of 30% in the first half of 2026, as per data analyzed by researchers from Statistics Canada. The overall trade between the two countries saw a 3.6% increase compared to the previous year. This boost in trade is attributed to the re-engagement efforts between Canada and China amid strained relations with the U.S.
During the mentioned period, the total trade in goods between Canada and China reached $66.6 billion, with exports soaring by 30% to $21.74 billion. The key drivers of this growth were energy and minerals, constituting 58.4% of all domestic exports to China. Notably, energy exports, particularly crude oil and liquified propane, surged by 81.8%, while metal ores and non-metallic mineral exports, including copper ore, increased by 29%.
The warming diplomatic and economic ties between Canada and China, following years of tension, have played a crucial role in this trade upsurge. Additionally, Canada’s strategy to diversify its trade partners away from the U.S. has led to a renewed focus on strengthening trade relations with other countries, including China.
The Trans Mountain Pipeline’s increased capacity in June and disruptions in oil shipments through the Strait of Hormuz due to geopolitical events have further boosted Canada’s oil exports to Asia. Both countries are optimistic about the future trade prospects, with projections suggesting that Asia could account for 70% of Canada’s oil exports by 2028.
Furthermore, a trade deal between Canadian and Chinese leaders has led to the entry of Chinese electric vehicles into the Canadian market and tariff reductions on Canadian agricultural products. This agreement has positively impacted sectors like canola farming, with prices rebounding and exports growing.
Although imports from China decreased by 5.8% year over year, the shift in manufacturing and trade dynamics is evident. Despite the import decline, Canada’s trade deficit with China reduced by 25%. Efforts to fortify trade relations and diversify export markets remain a priority for Canada, aiming to achieve a significant increase in exports to China by 2030.
