Canadian exports to China surged by 30% in the first half of 2026, according to data analyzed by researchers from Statistics Canada. This growth contributed to a 3.6% overall increase in trade between the two countries compared to the previous year.
In the same period, the total trade in goods between Canada and China reached $66.6 billion, with exports rising to $21.74 billion, a significant 30% jump year over year. The surge was mainly driven by the energy and minerals sector, which accounted for 58.4% of all domestic exports to China. Specifically, energy exports, including crude oil and liquefied propane, soared by 81.8%, while exports of metal ores and non-metallic minerals, such as copper ore, increased by 29%.
The boost in trade between Canada and China is seen as a reflection of the renewed engagement between the two nations amidst strained relations with the United States. This shift is part of Canada’s strategy to diversify its economy and reduce its dependence on the U.S. market.
Notably, the Trans Mountain Pipeline operating at 97% capacity in June played a significant role in enhancing Asia’s access to Western Canadian crude oil. Additionally, disruptions in oil shipments due to geopolitical tensions, like the U.S.-Israeli conflict with Iran, have led customers to turn to Canadian oil producers, further driving up exports to China.
The improvement in trade relations between Canada and China follows years of tension, highlighted by the arrest of Huawei executive Meng Wanzhou in 2018. As Canada aims to strengthen economic ties with China, Prime Minister Mark Carney has emphasized the importance of forging new trade agreements with other countries and reducing reliance on the U.S. market.
While the surge in exports to China marks a positive development, import numbers have declined by 5.8% year over year, contributing to a 25% decrease in Canada’s trade deficit with China. This downward trend in imports is partly attributed to the shift of certain manufacturing activities to countries like Vietnam.
Despite the overall gains in trade, the report indicates that agricultural exports saw only modest growth, with notable increases in canola seed, pea, and beef exports, while lobster exports experienced a decline. Farmers are looking to diversify their markets and reduce dependence on a single trading partner to fortify their bottom lines.
Looking ahead, experts believe there is significant potential for further growth in engaging with the Asia-Pacific region, given the expanding market opportunities. With Canada on track to achieve its goal of increasing exports to China by 50% by 2030, there are optimistic projections of surpassing this objective in the coming years.
