Canada–China Relations: Current Challenges

Canada–China Relations: Current Challenges by Maj (ret’d) CORNELIU, CHISU, CD, PMSC FEC, CET, P.Eng. Former Member of Parliament Pickering-Scarborough East In a rapidly changing geopolitical world, Canada’s international relations need drastic improvement. The former Trudeau government’s actions contrived to sink Canada to the lowest ebb in international relations, particularly with emerging economic powers such as India and China. In light of the current, challenging United States-Canada trade relations, Canada needs to diversify its international trade relations intelligently with emerging economic powers such as China. Canada–China relations, at the lowest points in decades, have entered one of their most difficult and unsettled phases in recent memory. . What was once framed as a pragmatic partnership anchored in commerce and cautious diplomacy has shifted toward suspicion, retaliation, and hardened positions on both sides. Human rights, trade wars, political interference, and security disputes dominate the agenda, leaving little room for constructive engagement. For Canada, the challenge lies in balancing its economic interests with the defense of democratic values and sovereignty. For China, relations with Ottawa are often viewed through the broader prism of its rivalry with the United States and Western allies. The result is a bilateral relationship characterized less by partnership than by friction; an uneasy dynamic with global implications. Few issues have inflamed Canadian public opinion more than human rights disputes with Beijing. In early 2025, China executed four individuals who held Canadian citizenship, all convicted of drug offenses. Although they were dual nationals, Beijing does not recognize dual nationality and dismissed Canada’s repeated appeals for clemency. Ottawa condemned the executions as a violation of basic human dignity, while Beijing defended the move as consistent with domestic law. This event revived memories of one of the darkest chapters in bilateral ties: the detention of Michael Kovrig and Michael Spavor. Arrested in 2018 shortly after Canada detained Huawei executive Meng Wanzhou on a U.S. extradition request, the two Canadians spent nearly three years in Chinese prisons. Their ordeal was seen internationally as retaliation—so-called “hostage diplomacy.” Though they were released in 2021 when Meng returned to China, the episode permanently scarred Canadian perceptions of Beijing. Canada has also taken firm positions on China’s treatment of Uyghurs, Tibetans, and Falun Gong practitioners. Since 2021, Ottawa has imposed sanctions on Chinese officials and entities tied to human rights abuses, most recently expanding its sanctions framework in late 2024 and early 2025. Beijing consistently rejects these accusations, calling them interference in its internal affairs, but the measures reflect a growing willingness in Canada to adopt values-based foreign policy tools against China. Trade once served as the ballast stabilizing Canada–China relations. For years, Canadian agricultural products, energy exports, and natural resources flowed to Chinese markets, while manufactured goods and electronics arrived in Canada. In the last five years, however, trade has become a battleground. In 2024, Ottawa imposed steep tariffs on Chinese steel, aluminum, and electric vehicles, citing unfair subsidies and risks to domestic industries. China retaliated swiftly, targeting Canadian agricultural exports. Canola, a C$5 billion industry, has been hit hardest: in August 2025, Beijing levied a punitive anti-dumping duty of 75.8% on Canadian canola imports. Farmers across the Prairies, already battered by fluctuating markets, warned of devastating losses. The clash has expanded into other sectors. China has restricted imports of peas, oilcakes, pork, and aquatic products, while Canada has pursued cases at the World Trade Organization. Beijing, in turn, has filed its own WTO complaint against Ottawa’s steel import restrictions, calling them protectionist. What began as a series of tit-for-tat measures has escalated into a broader trade war, with no resolution in sight. At the same time, Canada is working with allies to reduce reliance on Chinese supply chains for critical minerals—lithium, cobalt, and rare earths essential for clean technology and defense industries. Ottawa has pledged funding for domestic mining projects and secured agreements with partners in the G7 and NATO. For Beijing, these moves signal an attempt to exclude China from future supply chains; for Canada, they are seen as insurance against strategic vulnerability. Security disputes add another layer of complexity. In June 2025, Canada ordered the closure of Hikvision’s operations, citing evidence that the Chinese surveillance giant was linked to rights abuses and posed risks to national security. The decision followed earlier restrictions on Huawei’s participation in Canada’s 5G networks, part of a coordinated stance with the United States, the UK, and Australia. Chinese officials condemned these moves, accusing Canada of undermining fair competition and politicizing technology. Yet Canadian policymakers point to rising concerns over espionage, cyberattacks, and the use of surveillance technology for repression abroad. The closure of Hikvision reflects not only human rights concerns but also a broader shift: Canada is aligning its technology policies with Western security alliances, even at the cost of losing Chinese investment and market access. Perhaps the most sensitive issue domestically has been allegations of Chinese interference in Canada’s democratic processes. Investigations by the Canadian Security Intelligence Service (CSIS) and testimony before the Parliamentary Foreign Interference Commission revealed evidence of Chinese activities during the 2019 and 2021 federal elections. The tactics included undisclosed financial support for certain candidates, disinformation campaigns on social media, and efforts to influence diaspora communities. While inquiries concluded that the overall outcomes of the elections were not altered, they noted that interference likely affected specific ridings. For Canadians, the findings struck at the heart of democratic integrity. Public pressure has forced successive governments to act more decisively. Ottawa has introduced new transparency requirements for foreign funding, strengthened CSIS oversight, and pledged closer cooperation with allies to counter disinformation. Beijing denies all allegations, dismissing them as politically motivated, but the revelations have fueled mistrust at both the political and public levels. The political context in Canada adds further uncertainty. When Mark Carney became prime minister in March 2025, analysts speculated about a possible recalibration. Carney, with his global economic expertise and reputation as a pragmatist, signaled openness to selective engagement with China, particularly in clean energy and climate policy. Yet domestic politics constrain his options. Opposition leader Pierre Poilievre is pushing for an even tougher line against Beijing, echoing public sentiment hardened by years of disputes. In this environment, any government will find it politically difficult to pursue rapprochement. In conclusion, Canada–China relations are now defined by confrontation rather than cooperation. Human rights disputes, escalating trade wars, security restrictions, and allegations of political interference have left little common ground. Economic ties, once the glue binding the relationship, are fraying under the weight of tariffs and retaliation. For Canada, China represents both an economic opportunity and a strategic risk. For China, Canada is a middle power closely aligned with the United States, making it both a convenient target for retaliation and a test case for how Western allies respond to Beijing’s policies. The future remains uncertain. China’s global ambitions and Canada’s alliance commitments mean that structural tensions will persist. Cooperation may still be possible in limited areas but the Canada–China relationship has entered a new era; one where suspicion overshadows trust, retaliation replaces compromise, and the path forward is defined by challenge rather than opportunity.