Canadian exports to China surged by 30% in the first half of 2026, as total trade between the two nations increased by 3.6% compared to the previous year, according to a report by the Canada China Business Council and the University of Alberta’s China Institute. The data revealed that trade in goods reached $66.6 billion during this period, with exports totaling $21.74 billion, driven primarily by energy and minerals. Energy exports, including crude oil and liquified propane, saw a significant 81.8% growth, while metal ores and non-metallic mineral exports, such as copper ore, rose by 29%.
The boost in trade is attributed to the ongoing efforts to strengthen economic ties between Canada and China amid strained relations with the United States. Prime Minister Mark Carney emphasized the importance of diversifying trade partnerships and reducing reliance on the U.S. market. Additionally, factors such as disruptions in oil shipments due to geopolitical tensions and the suspension of tariffs on Canadian agricultural products by China contributed to the surge in exports.
The Trans Mountain Pipeline reaching near-full capacity in June also played a role in increasing oil exports to Asia, particularly to China. As a result, projections indicate that by 2028, Asia could account for 70% of Canada’s oil exports. The trade truce between Carney and Chinese President Xi Jinping led to significant agreements benefiting both countries, including increased exports of Canadian agricultural products.
While export numbers to China have shown promising growth, imports from China to Canada declined by 5.8% year over year, resulting in a reduced trade deficit. This decrease in imports is partly due to a shift in manufacturing activities to countries like Vietnam. Despite the positive trends in exports, challenges remain in certain sectors such as agriculture, with fluctuations observed in different commodities like lobster.
The report highlights the need for Canada to further diversify its trade portfolio and fortify relationships with emerging markets in the Asia-Pacific region. With China presenting substantial market opportunities, there is potential for Canadian businesses to expand their presence in the region. The upcoming figures at the year-end will provide a comprehensive overview of Canada’s trade performance, with expectations set on surpassing the target of increasing exports to China by 50% by 2030.