Canadian exports to China surged by 30% in the first half of 2026, with overall trade increasing by 3.6% year over year, as per Statistics Canada data analyzed by experts. The data, featured in a recent report by the Canada China Business Council and the University of Alberta’s China Institute, reflects the renewed trade relations between the two countries amid Canada’s efforts to diversify its economy amidst strained ties with the U.S.
The total trade in goods between Canada and China reached $66.6 billion in the first half of 2026, rising by 3.6%, while exports spiked by 30% to $21.74 billion annually. Energy and minerals were the dominant sectors, accounting for 58.4% of all domestic exports to China during the period, with energy, particularly crude oil and liquefied propane, experiencing an 81.8% growth. Additionally, metal ores and non-metallic mineral exports, including copper ore, saw a 29% increase.
Bijan Ahmadi, the executive director of the Canada China Business Council, noted that the first-half exports to China set a record. The surge in trade is believed to be a result of various factors coming together, despite the ongoing geopolitical tensions.
The warming diplomatic and economic ties between Canada and China follow years of strain, especially after the arrest of Huawei executive Meng Wanzhou in 2018 at the U.S.’s request. As Canada aims to reduce its reliance on the U.S., Prime Minister Mark Carney has emphasized the importance of forging new trade partnerships with other nations.
The Trans Mountain Pipeline reaching 97% capacity in June has significantly increased Asia’s access to Western Canadian crude oil. The disruption in oil shipments through the Strait of Hormuz due to the U.S.-Israeli conflict with Iran has also led customers to turn to suppliers like Canada.
Mark Maki, CEO of Trans Mountain, anticipates that Asia could account for 70% of Canada’s oil exports by 2028, highlighting the region’s growing importance as a market. The recent trade developments between Canada and China, including agreements on electric vehicles and agricultural products, mark a significant shift in bilateral relations.
While imports decreased by 5.8% year over year, Canada’s trade deficit with China narrowed by 25%. The decline in imports is partly attributed to the relocation of certain manufacturing activities outside of China to countries like Vietnam. Despite the overall positive trends, there are areas like agricultural exports that show only modest growth.
Moving forward, Canadian exporters are looking to strengthen their engagement with the Asia-Pacific region, particularly China, to tap into the expanding markets. The trade report authors highlight the need for diversification and emphasize the potential for increased trade with China in the coming years. With the positive momentum observed in the first half of 2026, Canada appears on track to surpass its export targets to China by 2030.