China-Canada economic relations enter era of ‘cold coexistence’ as political distrust grows
- Trade is expected to hold steady, but Ottawa is taking a more cautious stance on investment and major economic partnerships with Beijing
- The dip in China-Canadian relations shows no sign of ‘normalising any time soon’ and sets a backdrop for ongoing economic tension, analysts say
Canadian officials are getting tougher on economic ties with China – their top trading partner after the United States – following years of tensions and a broader trend of Western diversification away from the world’s No 2 economy, experts say.
Trade is expected to hold steady as each side needs the other, but Ottawa is taking a more cautious stance on investment and major economic partnerships with China.
“It doesn’t mean they will stop their ties with China,” said Yun Sun, director of the Washington-based Stimson Centre’s China programme. “But it does mean they intend to be more cautious and vigilant about the consequences.”
Within the past month, Canadian foreign minister Melanie Joly has warned domestic companies against deepening partnerships with China due to political issues, while Ottawa told three Chinese companies to divest from lithium mines linked to Canadian security interests.
The Canadian government does seem to be indicating a potentially tougher stance towards China
“The Canadian government does seem to be indicating a potentially tougher stance towards China after a number of years of carefully straddling the fence with Beijing,” said Vincent Rigby, senior adviser with the Centre for Strategic and International Studies research institution in Washington.
