Canadian exports to China surged by 30% in the first half of 2026, with total trade up 3.6% compared to the previous year, as per data from Statistics Canada analyzed by experts. The findings, detailed in a recent report released by the Canada China Business Council and the University of Alberta’s China Institute, demonstrate the growing economic ties between the two nations amid Canada’s efforts to diversify its trade partners due to strained relations with the U.S.
Trade in goods between Canada and China reached $66.6 billion in the initial half of 2026, marking a 3.6% increase, while exports saw a substantial 30% rise to $21.74 billion year-on-year. Notably, the energy and minerals sectors played a significant role, accounting for 58.4% of all Canadian exports to China during the period. Specifically, energy exports, including crude oil and liquefied propane, surged by 81.8%, while exports of metal ores and non-metallic minerals, such as copper ore, increased by 29%.
Bijan Ahmadi, the executive director of the Canada China Business Council, hailed the record-breaking first-half exports to China, attributing the surge to various contributing factors. The warming relations between Canada and China, following years of tension particularly surrounding the arrest of Huawei executive Meng Wanzhou in 2018, have played a crucial role in boosting trade ties.
As Canada aims to reduce its reliance on the U.S., Prime Minister Mark Carney has emphasized the importance of forging new trade agreements with other nations. The recent trade developments have been further buoyed by the high demand from Asia, particularly China, for Canadian oil amid global disruptions in oil supplies.
The Canada-China trade truce also saw a significant agreement between Carney and Chinese President Xi Jinping, leading to increased market access for Canadian agricultural products like canola meal and peas. This accord has already resulted in a positive impact on Canadian agricultural prices, with canola seed prices rebounding from the tariff dispute lows.
Alberta and British Columbia emerged as the major beneficiaries of the trade upsurge, driven by exports in energy, minerals, forestry, and agriculture. However, despite the overall trade growth, Canada experienced a decline of 5.8% in imports from China, partially influenced by a shift in manufacturing activities to other countries like Vietnam.
Looking ahead, Canadian exporters remain optimistic about the potential for further growth in trade with China and the Asia-Pacific region. The authors of the trade report highlight the need for continued efforts to diversify trade partners and strengthen engagement with growing markets to achieve sustained export growth.
According to industry projections, Canada is on track to surpass its export goals to China, with the first-half results setting a positive trajectory towards achieving a 50% increase in exports by 2030, as outlined by the Canadian government.