Canadian exports to China surged by 30% in the first half of 2026, as per data from Statistics Canada analyzed by researchers. Overall trade between the two countries increased by 3.6% year over year during this period. The rise in exports, totaling $21.74 billion, contributed to the total trade value of $66.6 billion in the first half of 2026.
The trade growth was predominantly driven by energy and minerals, which accounted for 58.4% of domestic exports to China. The energy sector, particularly crude oil and liquefied propane, witnessed a substantial 81.8% growth, while exports of metal ores and non-metallic minerals, including copper ore, rose by 29%.
The uptick in trade between Canada and China reflects efforts to strengthen economic ties amidst strained relations with the U.S. A report by the Canada China Business Council and the University of Alberta’s China Institute highlighted the increasing trade volumes as a positive outcome of the two countries re-engaging economically.
The recent boost in trade can be attributed to various factors, including improved diplomatic relations between Canada and China following tensions over the arrest of Huawei executive Meng Wanzhou in 2018. Additionally, Canada’s focus on diversifying its trade partners, especially in light of escalating trade disputes with the U.S., has led to a renewed emphasis on engaging with China and other countries.
Moreover, the Trans Mountain Pipeline reaching 97% capacity in June has facilitated increased access to Western Canadian crude oil in Asia. Disruptions in oil shipments due to geopolitical conflicts, such as the U.S.-Israeli confrontation with Iran, have further fueled demand for Canadian oil in international markets.
The trade truce between Canada and China has resulted in significant agreements, such as allowing Chinese electric vehicles into the Canadian market in exchange for tariff reductions on Canadian agricultural products. This agreement has already shown positive impacts, with agricultural prices rebounding and trade relations improving between the two nations.
Despite the positive momentum in exports, imports from China to Canada have seen a decline of 5.8% year over year. This reduction has helped narrow Canada’s trade deficit with China, partly due to a shift in manufacturing operations to other countries like Vietnam.
While the recent trade improvements with China are encouraging, there is a call for further diversification and fortification of trade partnerships to reduce dependence on a single market. The focus remains on expanding engagement with the Asia-Pacific region, where substantial market opportunities exist, especially in China. Overall, the outlook for increasing exports to China looks promising, with Canada potentially surpassing its export growth targets by 2030.