Canadian exports to China surged by 30% in the first half of 2026, contributing to a 3.6% increase in overall trade compared to the previous year, as per data from Statistics Canada analyzed by experts. The latest figures, detailed in a fresh report jointly released by the Canada China Business Council and the University of Alberta’s China Institute, mirror the improved trading relations between the two nations. This uptick in trade is a strategic move by Canada to diversify its economic ties amid strained relations with the United States.
During the initial half of 2026, the total goods trade between Canada and China reached $66.6 billion, marking a 3.6% rise, with exports climbing to $21.74 billion, up 30% year-on-year. Notably, energy and minerals led the exports, accounting for 58.4% of all Canadian exports to China during this period. Energy exports, mainly crude oil and liquefied propane, saw a substantial 81.8% growth, while exports of metal ores and non-metallic minerals, including copper ore, increased by 29%.
“This represents a record high for our first half-year exports to China,” noted Bijan Ahmadi, the executive director of the Canada China Business Council. Despite existing trade ties between the countries, the recent surge is likely due to a combination of factors.
The warming diplomatic and economic relationships between Canada and China, following years of tension over issues like the arrest of Huawei executive Meng Wanzhou in 2018, have played a significant role. Concurrently, amid escalating trade disputes between Canada and the U.S., Canadian Prime Minister Mark Carney has emphasized the nation’s pursuit of new trade pacts with other countries to reduce dependence on the U.S.
The Trans Mountain Pipeline’s increased capacity to 97% in June has substantially enhanced Asia’s access to Western Canadian crude oil. Additionally, disruptions in oil shipments due to the U.S.-Israeli conflict with Iran, leading to higher oil prices, have driven customers to seek alternative suppliers like Canada.
Mark Maki, the CEO of Trans Mountain, projected that Asia could potentially account for 70% of Canada’s oil exports by 2028. The trade landscape in the first half of 2026 witnessed a significant shift in bilateral relations, with Carney striking a deal with Chinese President Xi Jinping to facilitate the entry of Chinese electric vehicles into Canada’s market in exchange for tariff concessions on Canadian agricultural products.
The trade dynamics have resulted in notable export gains for Alberta and British Columbia, particularly in energy, minerals, forestry, and agriculture sectors. Despite the overall trade growth, imports from China decreased by 5.8% year-over-year, contributing to a 25% reduction in the trade deficit with China. This decline has partly been attributed to a shift in manufacturing activities to countries like Vietnam.
The report authors highlighted that while agricultural exports saw modest improvement, with rises in canola seed, pea, and beef exports, lobster exports witnessed a decline. Farmers are now looking to diversify their markets to reduce dependence on a single trading partner.
In conclusion, the surge in Canadian exports to China signifies a positive trend, showcasing potential for further growth in engagement with the Asia-Pacific region. The upcoming data at the year-end will provide a comprehensive outlook, but Canada appears on track to achieve its objective of boosting exports to China by 50% by 2030, potentially surpassing this target.