Canada’s exports to China jumped by 30.1 per cent in the first half of 2026, led by crude oil, copper and other energy and mineral products, as Ottawa stepped up efforts to diversify trade ties amid growing tensions with its largest trading partner, the United States.
Exports to China reached C$21.74 billion (US$15.63 billion) over the period, marking the highest first-half value since 1997, according to a trade report released by the Canada China Business Council and the China Institute at the University of Alberta.
The report, published on Monday, showed that energy and mineral products drove much of the growth. Energy products accounted for 35.8 per cent of the shipments, surging 81.8 per cent from a year earlier. Metal ores and non-metallic minerals made up 22.6 per cent, with exports rising 29 per cent.
Crude petroleum exports more than doubled to C$5.96 billion, contributing C$3.2 billion to the overall increase. Exports of copper ore and concentrate rose by C$949 million to C$2.64 billion.
Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation – a think tank under the Ministry of Commerce – said the expansion reflected strong alignment between Canadian supply and Chinese demand for energy and critical minerals, backed by both governments’ willingness to strengthen ties.
Diversifying trade partners had long been a Canadian objective, Zhou observed, noting that the strategy was accelerating as risks in Ottawa’s relationship with Washington grew.
Zhao Minghao, deputy director of the Centre for American Studies at Fudan University, echoed that sentiment. “Mark Carney’s government is taking a pragmatic approach towards Beijing,” Zhao said.
“Notably, he views improving relations with China as a way to achieve a degree of ‘de-risking’ from the United States.”
Bilateral tensions between Washington and Ottawa have escalated since US President Donald Trump returned to the White House in early 2025. Trump has publicly expressed his desire to annex Canada and quickly stepped up tariffs against the neighbouring country.
After US-Canada trade negotiations broke down in late August, Washington imposed 50 per cent tariffs on about US$20 billion worth of Canadian goods, prompting Ottawa to retaliate with measures that took effect earlier this month.
According to Zhao, the latest friction had largely stemmed from US efforts to restrict Canada’s closer economic engagement with China, which he said Ottawa viewed as an infringement on its sovereignty.
“As Carney said, the international order is undergoing a ‘rupture’, [so] he must improve ties with China,” Zhao stated, noting that Canada was actively repositioning itself as a “middle power” by deepening partnerships with the European Union, South Korea, Australia and other economies.
“This highlights a longer-term shift towards foreign policy diversification – using its core strength in energy and critical minerals to hedge against US pressure,” Zhao said.
Carney has set an ambitious goal of doubling Canadian exports to markets outside the US over the next decade, with China potentially playing an important role in that effort.
During a visit to China earlier this month, Corey Hogan, parliamentary secretary to Canada’s minister of energy and natural resources, said there was “broad potential” for energy cooperation between the two countries.
Ottawa, Hogan said, was willing to strengthen information sharing and policy exchanges with Beijing to create a favourable environment for trade and investment by energy companies from both countries, according to a statement from China’s National Energy Administration.
The Trans Mountain Expansion Project (TMX), an oil pipeline system that provides Canadian crude with a direct route to the Asia-Pacific region independent of US pipelines, highlights the potential benefits of deeper energy ties with China.
According to data released on Monday by Natural Resources Canada, China has become the leading buyer of seaborne exports shipped through TMX, accounting for about 60 per cent of shipments. -- SOUTH CHINA MORNING POST
