Canadian exports to China surged by 30% in the initial half of 2026, marking a 3.6% increase in total trade compared to the previous year, as per findings from Statistics Canada scrutinized by analysts. The data, featured in a recent report jointly released by the Canada China Business Council and the University of Alberta’s China Institute, showcase the strengthening trade ties between the two nations. This surge comes as part of Canada’s strategic efforts to broaden its economic horizons amidst strained relationships with the United States.
During the first half of 2026, total trade in goods between Canada and China amounted to $66.6 billion, with exports experiencing a substantial 30% surge to reach $21.74 billion year-on-year. Notably, the energy and minerals sectors dominated the exports, constituting 58.4% of all domestic exports to China during this period. Energy exports, including crude oil and liquefied propane, witnessed a remarkable 81.8% growth, while metal ores and non-metallic mineral exports, such as copper ore, also saw a notable increase of 29%.
“This marks a record high for our exports to China in the first half of the year,” mentioned Bijan Ahmadi, the executive director of the Canada China Business Council. The recent trade boost is attributed to a culmination of factors amid the evolving geopolitical landscape.
The warming diplomatic and economic relations between Canada and China, following years of tension surrounding incidents like the arrest of Huawei executive Meng Wanzhou in 2018, have played a pivotal role in fostering this trade resurgence. Additionally, as the trade tensions between Canada and the U.S. continue to escalate, Canadian Prime Minister Mark Carney has reiterated the nation’s commitment to forging new trade alliances and reducing dependence on the U.S.
The Trans Mountain Pipeline reaching 97% capacity in June has significantly enhanced Asia’s access to Western Canadian crude oil. Furthermore, disruptions in oil shipments due to the U.S.-Israeli conflict with Iran, leading to higher oil prices, have driven customers towards alternative suppliers like Canada.
The trade truce between Canada and China in the first half of 2026 witnessed a landmark agreement between Carney and Chinese President Xi Jinping. This agreement facilitated the entry of thousands of Chinese electric vehicles into the Canadian market in exchange for Beijing suspending certain tariffs on Canadian agricultural products.
While trade with China has witnessed substantial growth, import figures have seen a decline of 5.8% year-on-year, despite China remaining Canada’s second-largest import source. This decline has reduced Canada’s trade deficit with China by 25%, partly due to a shift in manufacturing activities to countries like Vietnam.
Looking ahead, Canadian exporters are optimistic about further expanding their engagement with the Asia-Pacific region, considering the lucrative market opportunities it presents. The upcoming data at the year-end is expected to provide a comprehensive overview of the trade landscape, with Canada well-positioned to achieve its target of a 50% increase in exports to China by 2030, as indicated by Ahmadi.