Canada Navigates China’s Rise

China is Canada’s fastest-growing trade partner.  Recent figures from British Columbia show that, for the first time, Canada now exports more lumber to China than to the United States. If the U.S. opts out of building a pipeline that would deliver crude oil from Edmonton to the Gulf Coast, China will likely step in. Indeed, China has invested aggressively in the Canadian energy sector in recent years.  Last month China National Offshore Oil Corp. bought OPTI Canada Inc. in a bold step toward unlocking Alberta’s oil sands. The acquisition immediately followed John Baird’s trip to China, during which he heralded a “new era” for Canada-China relations and unequivocally called China a “friend” and “ally.”

Yet by and large, Canadians remain ambivalent in their attitudes toward China’s rise.  Results from a recent national poll commissioned by the Asia Pacific Foundation of Canada show that two thirds of Canadians believe China will surpass the U.S. in influence in the next 10 years, while only one in 10 Canadians feels warm toward China. Reaction to a Canadian court’s decision last month to extradite Xai Changxing also reflects Canadian ambivalence toward  China.  And while China remains the top Asian market for Canadian investors, Canadian skepticism of Chinese business persists.  In early June the share price of Sino-Forest Corp., at the time the most valuable Canadian-listed forestry stock, plunged rapidly after the release of a single report alleging systematic fraud in the company’s accounting.  The turn revealed latent mistrust of the corporation among its largest Canadian investors.

This mistrust is aggravated by rumours of state-run Chinese cyber attacks.  Last week, security company McAfee uncovered a large-scale hacking operation that targeted the United Nations and 72 governments and businesses worldwide, leaving many to speculate on China’s involvement.

Following these recent developments in Canada-China relations, the CIC asked four Canadian academics to comment on the Canadian implications of China’s burgeoning power.  Michael Hart and Joanna Wong write on trade and culture, respectively, while Paul Evans speaks to us about Canada’s evolving China policy, and Jon Penney comments on suspicion of China’s cyber activity.

Photo courtesy of Reuters.