Canadian exports to China surged by 30% in the first half of 2026, as per data from Statistics Canada analyzed by experts. The overall trade between the two countries saw a 3.6% increase compared to the previous year. The latest figures, featured in a new report released by the Canada China Business Council and the University of Alberta’s China Institute, demonstrate the growing trade ties between Canada and China amid efforts to diversify the Canadian economy amidst strained relations with the United States.
During the first half of 2026, the total trade in goods between Canada and China reached $66.6 billion, marking a 3.6% rise, while exports surged by 30% to $21.74 billion year-on-year. Notably, energy and minerals were the key drivers, constituting 58.4% of all Canadian exports to China during that period. Energy exports, mainly crude oil and liquefied propane, spiked by 81.8%, while exports of metal ores and non-metallic minerals, including copper ore, increased by 29%.
Bijan Ahmadi, the executive director of the Canada China Business Council, highlighted that the first half of 2026 saw record-high exports to China. The significant uptick in trade is attributed to various factors, including the improving diplomatic and economic relations between Canada and China following years of tension, particularly surrounding the arrest of Huawei executive Meng Wanzhou in 2018.
Prime Minister Mark Carney emphasized Canada’s commitment to forging new trade partnerships and reducing reliance on the U.S. amidst escalating trade disputes. The Trans Mountain Pipeline, operating at 97% capacity in June, has significantly expanded Asia’s access to Canadian crude oil. Moreover, disruptions in global oil supply due to conflicts have further boosted Canada’s oil exports to key markets like China.
The trade truce between Canada and China in the first half of 2026 led to significant agreements benefiting both nations. Canada allowed Chinese electric vehicles into its market in exchange for tariff reductions on Canadian agricultural products. This accord has positively impacted Canadian farmers, leading to improved prices for agricultural commodities like canola seed.
Despite the overall positive trade trends, import numbers from China to Canada decreased by 5.8% year over year, with certain types of manufacturing shifting to other countries like Vietnam. The report authors also noted that while agricultural exports showed modest growth, not all sectors experienced improvements, with lobster exports declining.
Looking ahead, there is potential for Canada to further enhance trade relations with the Asia-Pacific region, with China presenting substantial market opportunities. The upcoming data at the end of the year will provide a clearer picture of the trade dynamics. With the current growth trajectory, Canada is on course to surpass its target of increasing exports to China by 50% by 2030.