Canadian exports to China surged by 30% in the initial half of 2026, marking a 3.6% year-over-year increase in overall trade, as per data scrutinized by researchers from Statistics Canada. The findings, featured in a recent report released by the Canada China Business Council and the University of Alberta’s China Institute, indicate a revival in trade between the two nations. This trend aligns with Canada’s efforts to broaden its economic scope amidst strained relations with the U.S.
The total trade in goods between Canada and China amounted to $66.6 billion in the first half of 2026, up by 3.6%, with exports climbing to $21.74 billion, showing a substantial 30% rise from the previous year. The primary contributors to this growth were energy and minerals, constituting 58.4% of all Canadian exports to China during this period. Notably, the energy sector, particularly crude oil and liquefied propane, witnessed a robust 81.8% surge, while exports of metal ores and non-metallic minerals, including copper ore, increased by 29%.
Bijan Ahmadi, the executive director of the Canada China Business Council, hailed the record-breaking first-half export figures to China. The escalation in trade can be attributed to various factors amidst changing geopolitical dynamics, including the recent warming of diplomatic and economic relations between Canada and China following years of tensions, notably surrounding the arrest of Huawei executive Meng Wanzhou in 2018.
As Canada seeks to diversify its trade partnerships, the recent trade escalation with the U.S. has prompted Prime Minister Mark Carney to emphasize the country’s intention to forge new trade agreements and reduce dependence on its southern neighbor. The Trans Mountain Pipeline reaching near-full capacity in June has also facilitated increased access for Asian markets to Canadian crude oil, particularly amidst disruptions in global oil supply due to conflicts in regions like the Middle East.
The trade truce between Canada and China has seen positive outcomes, with significant agreements reached to boost market access for Canadian agricultural products in exchange for tariff suspensions by Beijing. This has led to tangible benefits for Canadian farmers, such as improved prices for canola seed. Notably, regions like Alberta and British Columbia have experienced substantial export gains across various sectors, including energy, minerals, forestry, and agriculture.
While the overall trade performance has been encouraging, import numbers have seen a decline of 5.8% year over year, with shifts in manufacturing patterns impacting imports from China. Despite challenges in certain sectors like agriculture, the prospects for expanding trade with China and the Asia-Pacific region remain promising, presenting opportunities for Canadian businesses to tap into growing markets.
Looking ahead, the focus will be on sustaining this positive momentum in trade with China and further diversifying export channels to fortify Canada’s economic resilience. The success achieved in the first half of 2026 positions Canada well on track to achieve its export growth targets, signaling a positive trajectory for future trade relations with China.