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, according to research analyzing Statistics Canada data. The data, part of a recent report released by the Canada China Business Council and the University of Alberta’s China Institute, reflects the strengthening trade ties between the two nations amidst Canada’s efforts to diversify its economy in light of strained relations with the U.S.
During the first half of 2026, the trade in goods between Canada and China reached $66.6 billion, marking a 3.6% increase, with exports soaring by 30% to $21.74 billion. Energy and minerals played a dominant role, accounting for 58.4% of all Canadian exports to China during this period. Especially noteworthy was the 81.8% growth in energy exports, primarily crude oil and liquefied propane, while exports of metal ores and non-metallic minerals, including copper ore, rose by 29%.
The uptick in trade between Canada and China is a significant milestone, as highlighted by Bijan Ahmadi, the executive director of the Canada China Business Council, who described the export figures as a record for the first half of the year. The warming diplomatic and economic relations between the two countries, following years of tension over various issues including the arrest of Huawei executive Meng Wanzhou in 2018, have contributed to this surge in trade.
Prime Minister Mark Carney has emphasized Canada’s commitment to forging new trade agreements with other countries and reducing its dependence on the U.S., especially amidst escalating trade conflicts. The Trans Mountain Pipeline’s increased capacity and disruptions in oil shipments due to geopolitical tensions have further fueled Canada’s oil exports to Asia, notably China.
The trade truce between Canada and China in 2026 led to a significant boost in bilateral relations, with agreements facilitating the entry of Chinese electric vehicles into the Canadian market in exchange for tariff concessions on Canadian agricultural products. This arrangement has already resulted in improved prices for Canadian canola seed, benefitting farmers across the country.
While imports from China declined by 5.8% year over year, contributing to a reduction in Canada’s trade deficit with China, the shift in manufacturing to countries like Vietnam has impacted import numbers. Despite some fluctuations in specific industries, overall trade performance has shown positive growth, with room for further expansion and diversification in the Asia-Pacific region.
Looking ahead, stakeholders are optimistic about Canada’s export potential to China, with projections indicating a promising trajectory towards achieving the goal of a 50% increase in exports to China by 2030, and the possibility of surpassing this target. The evolving trade dynamics between Canada and China underscore the importance of fostering stronger economic ties and capitalizing on emerging market opportunities in the region.