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 analyzed by experts. These findings, detailed in a recent report by the Canada China Business Council and the University of Alberta’s China Institute, reflect a renewed economic relationship between the two nations amid Canada’s efforts to broaden its economic horizons amidst strained ties with the U.S.
The trade volume of goods between Canada and China reached $66.6 billion in the first half of 2026, marking a 3.6% uptick. Notably, exports saw a significant 30% boost to $21.74 billion year-over-year during this period. The majority of Canadian exports to China comprised energy and minerals, accounting for 58.4% of total domestic exports. Energy exports, particularly crude oil and liquefied propane, witnessed an impressive 81.8% growth, while exports of metal ores and non-metallic minerals, including copper ore, rose by 29%.
Bijan Ahmadi, the executive director of the Canada China Business Council, hailed the record-breaking first-half exports to China, emphasizing the importance of the sustained trade relationship despite previous geopolitical tensions. The warming relations between Canada and China can be attributed to various factors, including the ongoing trade dispute between Canada and the U.S., prompting Canada to seek new trade partners and opportunities.
The recent agreement between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping has further paved the way for enhanced economic collaboration. Under this deal, China has eased tariffs on Canadian agricultural products like canola meal and peas, leading to a positive impact on agricultural trade. Additionally, the Trans Mountain Pipeline’s increased capacity and disruptions in oil supply due to global conflicts have also contributed to the surge in Canadian oil exports to Asia, particularly China.
While the trade truce with China has bolstered Canadian exports, imports from China have experienced a 5.8% decline year over year. This shift in import dynamics has narrowed Canada’s trade deficit with China, partly influenced by the relocation of certain manufacturing operations to other countries like Vietnam.
Despite the positive momentum in trade relations, there remains a call for diversification and strengthening of trade partnerships beyond China. Canadian exporters are encouraged to explore opportunities in the Asia-Pacific region, with an emphasis on expanding market reach and product offerings. The ongoing efforts aim to not only achieve but potentially surpass the target of a 50% increase in exports to China by 2030, as set by the Canadian government.