Canadian exports to China surged by 30% in the first half of 2026, leading to a 3.6% year-over-year increase in overall trade, as per Statistics Canada data examined by analysts. The data, featured in a recent report by the Canada China Business Council and the University of Alberta’s China Institute, seem to mirror the renewed interactions between the two nations amid Canada’s efforts to broaden its economic scope amidst strained relations with the U.S.
Trade between Canada and China in goods reached $66.6 billion in the initial half of 2026, marking a 3.6% rise, with exports escalating by 30% to $21.74 billion year-on-year. Energy and minerals notably dominated the exports, constituting 58.4% of all domestic exports to China during that period, with energy, particularly crude oil and liquified propane, witnessing an 81.8% surge. Additionally, exports of metal ores and non-metallic minerals, including copper ore, climbed by 29%.
Bijan Ahmadi, the executive director of the Canada China Business Council, hailed the record-breaking first-half exports to China. The recent spike in trade can be attributed to various factors, despite the historical trade ties between the nations persisting through geopolitical tensions in recent years.
The warming diplomatic and economic relations between Canada and China following years of strain, primarily due to the arrest of Huawei executive Meng Wanzhou in 2018, have contributed to this upswing. Amid escalating trade disputes with the U.S., Canadian Prime Minister Mark Carney has emphasized the country’s intention to forge new trade agreements with other nations to reduce dependency on the U.S.
The article also highlights the significant increase in oil exports, aided by the Trans Mountain Pipeline nearing full capacity in June, granting Asia greater access to Western Canadian crude oil. The disruption in oil shipments through the Strait of Hormuz due to the U.S.-Israeli conflict with Iran has further boosted demand for Canadian oil.
Moreover, a trade truce between Canada and China saw a substantial shift in bilateral relations, with agreements facilitating the entry of Chinese electric vehicles into the Canadian market in exchange for tariff reductions on Canadian agricultural products. Noteworthy export gains were observed in provinces like Alberta and British Columbia, driven by energy, minerals, forestry, and agriculture.
Despite the overall positive trajectory, the report notes a decline in imports by 5.8% year over year, primarily influenced by a shift in manufacturing activities to other countries like Vietnam. The authors emphasize the need for Canada to diversify trade partners and industries for sustainable growth.
Looking ahead, experts anticipate continued growth in engagement with the Asia-Pacific region, particularly China, highlighting substantial market opportunities. The data from the latter part of the year will provide a comprehensive outlook, suggesting that Canada is progressing well towards its target of a 50% increase in exports to China by 2030, with possibilities of surpassing this objective.
