Canadian exports to China surged by 30% in the first half of 2026, as per data analyzed by researchers from Statistics Canada. The overall trade between the two countries increased by 3.6% year over year during this period. The latest numbers, part of a recent report by the Canada China Business Council and the University of Alberta’s China Institute, demonstrate the strengthening trade ties between Canada and China amid efforts by Canada to broaden its economic partnerships beyond the U.S.
In the first half of 2026, the total trade in goods between Canada and China reached $66.6 billion, with exports soaring by 30% to $21.74 billion compared to the previous year. The majority of exports were in the energy and minerals sector, constituting 58.4% of all exports to China. Notably, energy exports, particularly crude oil and liquefied propane, saw a remarkable 81.8% growth, while exports of metal ores and non-metallic minerals, including copper ore, increased by 29%.
“This record-breaking surge in exports to China during the first half of the year is a significant milestone for us,” stated Bijan Ahmadi, the executive director of the Canada China Business Council. The upward trend in trade between the two nations is attributed to various factors, including improving diplomatic and economic relations following past tensions, such as the arrest of Huawei executive Meng Wanzhou and recent trade disputes.
The Trans Mountain Pipeline’s increased capacity in June has also facilitated the rise in oil exports to Asia, especially with disruptions in oil shipments due to geopolitical conflicts. Additionally, the recent trade truce between Canada and China, marked by agreements such as allowing Chinese electric vehicles into the Canadian market in exchange for tariff reductions on Canadian agricultural products, has further boosted trade relations.
Despite the positive export growth, imports from China to Canada decreased by 5.8% year over year in the same period, leading to a 25% reduction in Canada’s trade deficit with China. The decline in imports is partly attributed to the shifting of certain types of manufacturing to other countries like Vietnam. This changing trade landscape underscores the need for Canada to diversify its trade partners and fortify its economic ties with various regions, particularly the Asia-Pacific market.
As Canada aims to enhance its export presence in China, experts believe that there is ample potential for further growth and engagement with the Asia-Pacific region. The outlook for the remainder of the year remains optimistic, with expectations of surpassing the target set by Ottawa to increase exports to China by 50% by 2030.
