Canadian exports to China surged by 30% in the first half of 2026, according to a study based on Statistics Canada data. Overall trade between the two countries grew by 3.6% compared to the previous year. The report, jointly published by the Canada China Business Council and the University of Alberta’s China Institute, suggests a revitalization of trade relations amid Canada’s efforts to diversify its economy due to strained ties with the U.S.
Total trade in goods between Canada and China reached $66.6 billion in the first half of 2026, with exports rising by 30% to $21.74 billion. The increase was primarily driven by energy and minerals, which accounted for 58.4% of all Canadian exports to China during this period. Notably, energy exports, particularly crude oil and liquefied propane, surged by 81.8%, while exports of metal ores and non-metallic minerals, including copper ore, increased by 29%.
The boost in trade can be attributed to various factors, including the thawing of diplomatic and economic tensions between Canada and China following the arrest of Huawei executive Meng Wanzhou in 2018. As Canada seeks to reduce its reliance on the U.S., Prime Minister Mark Carney has emphasized the importance of forging new trade agreements with other nations. The Trans Mountain Pipeline’s near-full capacity in June also played a role in enhancing Asia’s access to Canadian crude oil.
Additionally, a trade deal between Carney and Chinese President Xi Jinping led to the entry of tens of thousands of Chinese electric vehicles into the Canadian market in exchange for tariff reductions on Canadian agricultural products. This agreement has positively impacted Canadian farmers, with canola seed prices rebounding from lows experienced during the trade dispute with China.
While Canada’s trade deficit with China decreased by 25% due to a 5.8% drop in imports, there are concerns about the shift of certain manufacturing activities to countries like Vietnam. Despite the overall trade gains, agricultural performance showed only modest improvement, with notable increases in canola seed and pea exports but a decline in lobster exports.
Looking ahead, Canadian businesses are optimistic about expanding engagement with the Asia-Pacific region, especially with China’s significant market potential. The surge in exports to China during the first half of 2026 positions Canada well to achieve its goal of increasing exports to China by 50% by 2030, according to industry experts.