Canadian exports to China surged by 30% in the first half of 2026, with total trade increasing by 3.6% compared to the previous year, as per analysis of Statistics Canada data conducted by researchers. The findings, presented in a recent report by the Canada China Business Council and the University of Alberta’s China Institute, reflect the renewed engagement between the two nations. This revival is a part of Canada’s strategy to diversify its economy amidst strained relations with the U.S.
Trade in goods between Canada and China reached $66.6 billion in the first half of 2026, marking a 3.6% increase, with exports growing by 30% to $21.74 billion year-on-year. The dominant sectors were energy and minerals, accounting for 58.4% of all domestic exports to China during that period. Notably, energy exports, including crude oil and liquefied propane, surged by 81.8%, while metal ores and non-metallic mineral exports, such as copper ore, rose by 29%.
Bijan Ahmadi, the executive director of the Canada China Business Council, noted that these figures set a record for first-half exports to China. The uptick in trade is attributed to various factors, including improving diplomatic and economic relations between Canada and China following years of tension, particularly surrounding the arrest of Huawei executive Meng Wanzhou in 2018.
With the ongoing Canada-U.S. trade disputes and Prime Minister Mark Carney’s emphasis on diversifying trade partners, Canada is actively seeking new trade agreements. This shift is evident in the growing trade ties with China, supported by initiatives such as the China-Canada Financial Working Group and agreements on agricultural products.
The increase in oil exports to Asia, driven by factors like the Trans Mountain Pipeline reaching maximum capacity and disruptions in oil supply due to geopolitical tensions, has further boosted Canada’s trade outlook. The report also highlights the potential for Canada to expand its market presence in Asia, with projections indicating substantial growth in oil exports to the region by 2028.
In a bid to fortify its trade relationships, Canada is focused on strengthening ties with China and diversifying its export markets. While the recent trade figures show promising growth, there is still room for further expansion and collaboration with the Asia-Pacific region. As Canada aims to increase exports to China by 50% by 2030, the current trajectory suggests that this target may be surpassed, signaling a positive outlook for future trade relations.
