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 statistics, featured in a recent report released by the Canada China Business Council and the University of Alberta’s China Institute, signify a deepening trade relationship between the two nations. This growth is part of Canada’s strategy to broaden its economic horizons amidst strained ties with the United States.
During the first half of 2026, the total trade in goods between Canada and China amounted to $66.6 billion, marking a 3.6% rise, while exports escalated by 30% to reach $21.74 billion year-on-year. Notably, energy and minerals played a dominant role, constituting 58.4% of all Canadian exports to China during this period. Specifically, energy exports, primarily crude oil and liquefied propane, witnessed an 81.8% surge, while metal ores and non-metallic mineral exports, including copper ore, increased by 29%.
“This record-breaking performance in exports to China for the first half of the year is a significant achievement,” stated Bijan Ahmadi, the Executive Director of the Canada China Business Council. Despite historical trade relations between the two countries, the recent spike in trade levels can be attributed to various converging factors.
The warming diplomatic and economic ties between Canada and China, following years of tension stemming from the arrest of Huawei executive Meng Wanzhou in 2018, have played a pivotal role in this trade upswing. Concurrently, as trade disputes with the U.S. escalate, Canadian Prime Minister Mark Carney has emphasized the country’s intent to forge new trade agreements with other nations and reduce reliance on the U.S.
Moreover, external factors such as the near-full capacity utilization of the Trans Mountain Pipeline in June have significantly enhanced Asia’s access to Western Canadian crude oil. The disruption in oil shipments due to the U.S.-Israeli conflict with Iran, which led to higher oil prices, has further steered customers towards Canadian oil producers.
The trade dynamics between Canada and China have seen a significant shift in the first half of 2026, marked by increased exports and a notable trade truce between the two nations. The resumption of Chinese tariffs on Canadian agricultural products and reduced tariffs on specific goods have positively impacted Canadian farmers and exporters.
While the overall trade scenario shows promising growth, Canadian imports from China have declined by 5.8% year-over-year, contributing to a 25% reduction in the trade deficit with China. The shift in manufacturing activities to other countries like Vietnam has influenced this import trend.
In light of the evolving trade landscape, Canadian exporters are eyeing further diversification and consolidation of trade relations, especially with the Asia-Pacific region. The end-of-year figures will provide a comprehensive outlook on the trajectory of Canadian exports to China, with early indications hinting at Canada’s progress towards achieving the 2030 export target.