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 Statistics Canada data examined by analysts. The figures, detailed in a recent report by the Canada China Business Council and the University of Alberta’s China Institute, demonstrate a strengthening trade relationship between the two nations amidst Canada’s efforts to broaden its economic partnerships beyond the U.S.
During the first half of 2026, the total trade in goods between Canada and China reached $66.6 billion, marking a 3.6% rise, with exports witnessing a notable 30% growth to $21.74 billion year-on-year. Notably, energy and minerals were the primary drivers, accounting for 58.4% of all domestic exports to China during that period. Energy, particularly crude oil and liquefied propane, experienced a significant 81.8% surge, while exports of metal ores and non-metallic minerals, including copper ore, increased by 29%.
According to Bijan Ahmadi, the executive director of the Canada China Business Council, these export numbers represent a record high for Canada’s first-half exports to China. The uptick in trade can be attributed to various factors, including the recent diplomatic and economic reconciliation between the two countries after years of strained relations, notably following the arrest of Huawei executive Meng Wanzhou in 2018.
Furthermore, the trade dynamics have been influenced by Canada’s strategy to diversify its trade partnerships, especially as tensions with the U.S. persist. Prime Minister Mark Carney has emphasized the need to forge new trade alliances and reduce dependence on the U.S., particularly as Canada seeks to capitalize on the growing demand from Asian markets.
The Trans Mountain Pipeline’s increased capacity in June has significantly boosted Asia’s access to Western Canadian crude oil. Additionally, disruptions in oil shipments due to geopolitical tensions, such as the U.S.-Israeli conflict with Iran, have led to higher oil prices, prompting consumers to turn to reliable producers like Canada.
Despite the positive momentum in exports to China, imports from China to Canada witnessed a 5.8% decline year-over-year, contributing to a 25% reduction in Canada’s trade deficit with China. This decrease in imports has been partly driven by a shift in manufacturing activities to other countries like Vietnam.
In conclusion, the recent trade developments between Canada and China underscore the importance of diversifying trade relationships and enhancing economic ties with key markets in the Asia-Pacific region. As Canada aims to achieve a 50% increase in exports to China by 2030, the ongoing trade dynamics indicate a promising trajectory towards surpassing this goal.