At the same time, China has been diligently deepening its economic ties with Canada. This decision occurs despite increasingly strained diplomatic relations and amid growing global economic headwinds. Yet despite China’s bluster, in recent months Beijing has joined international maritime exercises to reinforce new global norms. They argue that the South China Sea as well as the Taiwan Strait are international waterways, freely navigable by all countries. China’s trade volume with its fourth largest trading partner continues to increase. This jump is driven by a Canadian trade surplus, at least as reported in Chinese customs data.
The trade picture between China and Canada is more complicated. In retaliation for Canada’s arrest of a top Huawei executive, China has slapped a 100-percent tariff on Canadian canola and a 25-percent tariff on pork. These restrictions are seen as a strategic choice, as China refrained from targeting more valuable Canadian exports like iron ores and wood pulp, which are harder to source elsewhere. This sort of tactic illustrates China’s broader use of trading relations to extend their own political influence. The 2019 canola import restrictions provide a vivid illustration of this playbook.
In a gesture of diplomacy, Beijing acknowledges Canada's sovereignty and has stated it will not interfere in Canada's relationship with the United States. This move has added fuel to the fire, as tensions were already running high since the execution of four Canadians earlier this year. Wang, a Chinese official, commented on the situation:
"One thing that I found confusing and perplexing is that after the execution happened, a lot of people here in Canada are paying a lot of attention to the family of the criminals," – Wang
Despite these tensions, Beijing has signalled a desire to thaw relations and strengthen bilateral ties. Beijing asserts that this improvement depends on Canada having a "correct cognition" about the causes of past conflicts and focusing on shared objectives rather than differences.
Wang emphasized:
"Unilateralism and trade protectionism have brought more instabilities and uncertainties to the world economic recovery," – Wang
China does not want other countries to use the idea as a pressure point in international affairs. It illustrates how, when Canada and Washington do engage, they can do so without making their relationship a zero-sum game. So does the potential for negotiating a new free-trade agreement with Canada, but that would require a shift in Canadian policies.
Against this backdrop, China has long tried to cultivate some ideological common ground with Canada. This includes increased direct flights and collaboration on various initiatives following the detention of a prominent Chinese executive at the behest of the U.S. China especially has been clamoring for a free-trade agreement with Canada. They argue that both countries need to focus their efforts on a common set of goals. Wang stated:
"To reach such an agreement, both sides need to work in the same direction toward the same goal," – Wang
China's actions reflect its broader economic strategy of asymmetric interdependence, which allows for the weaponization of trade relations—a perspective highlighted by Lynette Ong:
"At the core of the Chinese strategy is asymmetric interdependence that allows for its weaponization of trading relations … on other countries that cannot easily pivot away from a reliance on Chinese sources," – Lynette Ong
