What is Canada's trade relationship with China?

China is Canada's second-largest single-country trading partner after the United States, with two-way trade of about $115 billion in 2023. Canadian exports to China include canola, wheat, lumber, pulp, copper, iron ore, uranium, pork, lobster, and pharmaceuticals. Canadian imports from China are dominated by consumer electronics, machinery, textiles, furniture, and chemicals. The trade balance has historically favoured China, with Canada running a deficit of about $40 billion in 2023.

Canada-China relations changed sharply on December 1, 2018, when Canadian authorities arrested Huawei CFO Meng Wanzhou at Vancouver International Airport on a U.S. extradition warrant. Within days China detained Canadian businessman Michael Spavor and former diplomat Michael Kovrig (the 'Two Michaels') on espionage charges, and imposed new restrictions on Canadian canola, beef, and pork imports. Meng was released and the Two Michaels freed on September 24, 2021 in a coordinated three-way deal. Diplomatic relations have since cooled.

The federal government has taken multiple steps to manage strategic risk. The 2022 Indo-Pacific Strategy explicitly described China as 'an increasingly disruptive global power' and committed $2.3 billion to expanded Canadian engagement with the rest of the Indo-Pacific. Federal regulators have ordered three Chinese state-owned firms to divest investments in Canadian critical-mineral companies. Huawei and ZTE were barred from Canadian 5G networks in 2022. The Canadian government banned TikTok from federal-government devices in 2023.

Specific trade frictions persist. Chinese tariffs of 100 per cent on Canadian canola seed imposed in March 2025 followed Canada's matching of U.S. and EU tariffs on Chinese electric vehicles, steel, and aluminum. The Canada Border Services Agency has imposed anti-dumping duties on Chinese steel, aluminum, sugar, and cabinets. The Investment Canada Act national-security review process has rejected several proposed Chinese acquisitions of Canadian assets. Despite these tensions, China remains a critical market for Canadian agricultural and resource exporters, and Canadian companies continue to operate substantial trade relationships with Chinese partners.