Canadian exports to China surged by 30% in the first half of 2026, with total trade increasing by 3.6% year over year, according to data analyzed by researchers from Statistics Canada. The findings, detailed in a recent report from the Canada China Business Council and the University of Alberta’s China Institute, indicate a strengthening trade relationship between the two countries as Canada seeks to diversify its economy amidst strained ties with the U.S.
The trade in goods between Canada and China reached $66.6 billion in the first half of 2026, showing a 3.6% uptick, with exports experiencing a notable 30% rise to $21.74 billion year over year. Energy and minerals played a significant role, comprising 58.4% of all domestic exports to China during this period, with energy, particularly crude oil and liquefied propane, witnessing a robust 81.8% growth. Additionally, exports of metal ores and non-metallic minerals, including copper ore, climbed by 29%.
Bijan Ahmadi, the executive director of the Canada China Business Council, hailed the record-breaking first-half exports to China as a positive development. The recent surge in trade likely stems from various factors despite longstanding trade relations between the two countries, even during previous geopolitical tensions.
The warming diplomatic and economic ties between Canada and China following years of strain, the recent trade escalations between Canada and the U.S., and Canada’s efforts to forge new trade agreements with other nations have all contributed to the increased trade with China. The Trans Mountain Pipeline operating at near-maximum capacity in June has also facilitated increased access to Western Canadian crude oil in Asia.
According to Anton Malkin, head of research at the University of Alberta’s China Institute, there is a noticeable synergy in trade between Canada and China, despite existing tensions. Mark Maki, CEO of Trans Mountain, predicts that by 2028, Asia could account for 70% of Canada’s oil exports, highlighting the region’s growing importance.
A landmark trade deal between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping has further solidified the trade relations, with concessions made on both sides. This agreement has led to a surge in Canadian agricultural exports to China, notably benefiting canola farmers like Andre Harpe.
While the overall trade landscape between Canada and China has shown positive momentum, there are challenges, including a decline in imports and varying sector performances. The report authors emphasize the need for Canada to continue diversifying its export markets and fortifying trade relationships to sustain and expand its economic growth.