Canadian exports to China surged by 30% in the initial half of 2026, with overall trade climbing 3.6% year-over-year, as per data from Statistics Canada analyzed by experts. The figures, part of a recent report released by the Canada China Business Council and the University of Alberta’s China Institute, indicate a strengthening trade relationship between the two countries. This growth is a part of Canada’s strategy to diversify its economy amidst strained relations with the U.S.
Total trade in goods between Canada and China reached $66.6 billion in the first half of 2026, up 3.6%, with exports soaring by 30% to $21.74 billion compared to the previous year. The key drivers were energy and minerals, constituting 58.4% of all domestic exports to China during this period. Specifically, energy exports, mainly crude oil and liquefied propane, surged by 81.8%, while exports of metal ores and non-metallic minerals like copper ore rose by 29%.
“This marks a record for our first-half exports to China,” stated Bijan Ahmadi, the executive director of the Canada China Business Council, highlighting the significance of the increase. The recent spike is attributed to various factors, including the improving diplomatic and economic ties between Canada and China following past tensions, especially surrounding the arrest of Huawei executive Meng Wanzhou in 2018.
Furthermore, Canada’s efforts to enhance trade relations with other countries, in light of escalating trade disputes with the U.S., have played a role in the trade growth with China. Prime Minister Mark Carney emphasized the need to establish new trade partnerships and reduce reliance on the U.S. in a bid to pivot and prosper economically.
The Trans Mountain Pipeline reaching near full capacity in June has significantly boosted Asia’s access to Western Canadian crude oil. Moreover, disruptions in oil supply due to geopolitical tensions, such as the U.S.-Israeli conflict with Iran, have further bolstered Canada’s oil exports to meet the increased demand.
Despite the positive export trends, imports from China to Canada declined by 5.8% year over year, leading to a reduction in Canada’s trade deficit with China. This drop in imports is partially driven by a shift of certain manufacturing activities to other countries like Vietnam.
Amidst the trade dynamics, Canadian farmers are looking to diversify their markets and reduce dependence on a single trading partner. The trade report authors highlight the need for continued efforts to fortify trade relations with China and tap into the growing markets in the Asia-Pacific region.
While Canadian exports to China are progressing, there is still room for growth and expansion in the trade relationship. Overall, the trade data for the first half of the year sets a positive trajectory for Canada to achieve its goal of increasing exports to China by 50% by 2030, potentially surpassing the target.
