Canadian exports to China surged by 30% in the first half of 2026, with overall trade increasing by 3.6% compared to the previous year, as per data from Statistics Canada analyzed by experts. This growth is part of the rekindled trade relationship between the two countries, driven by Canada’s efforts to diversify its economy amidst strained ties with the U.S.
In the initial six months of 2026, the total trade in goods between Canada and China reached $66.6 billion, marking a 3.6% uptick, while exports saw a substantial 30% rise to $21.74 billion year-on-year. The export sector was predominantly led by energy and minerals, accounting for 58.4% of all domestic exports to China during this period, with energy, including crude oil and liquefied propane, witnessing an 81.8% surge. Additionally, exports of metal ores and non-metallic minerals, such as copper ore, climbed by 29%.
“This marks a record high for our exports to China in the first half of the year,” stated Bijan Ahmadi, the executive director of the Canada China Business Council. The notable increase in trade can be attributed to various factors aligning favorably.
The warming diplomatic and economic relations between Canada and China following years of tensions, particularly surrounding the arrest of Huawei executive Meng Wanzhou in 2018, have played a significant role in fostering increased trade. Moreover, amid escalating trade disputes with the U.S., Canadian Prime Minister Mark Carney has emphasized the country’s intention to forge new trade agreements with other nations to reduce reliance on the U.S.
The surge in oil exports has also been bolstered by geopolitical factors such as the U.S.-Israeli conflict with Iran, leading to disruptions in oil shipments through the vital Strait of Hormuz and prompting customers to turn to alternative suppliers like Canada. Furthermore, the Trans Mountain Pipeline operating at near-full capacity in June has facilitated enhanced access to Western Canadian crude oil for Asian markets.
The trade truce between Canada and China in 2026, marked by agreements facilitating the entry of Chinese electric vehicles into the Canadian market and tariff suspensions on Canadian agricultural products, has further fueled the positive trade momentum. This truce has notably benefited sectors like agriculture, with increased demand for products like canola seed.
The report also highlights a decline in imports by 5.8% year-over-year, with shifts in manufacturing to countries like Vietnam contributing to this trend. Despite the overall trade gains, certain sectors, including agriculture, saw only modest improvements, with fluctuations observed in specific commodities like lobster.
Looking ahead, there is optimism for further growth in engagement with the Asia-Pacific region, particularly with China being a key market opportunity. The trade data from the latter part of the year is awaited to provide a comprehensive assessment, but based on the strong performance in the first half, Canada appears on track to surpass its export targets to China by 2030.