An opportunity for a more constructive relationship

Hey there, time traveller!
This article was published 12/03/2025 (379 days ago), so information in it may no longer be current.

On Saturday, China announced the imposition of tough tariffs on a range of Canadian farm and food imports. Effective March 20, additional 100 per cent tariffs will be imposed on Canadian canola oil, oil cakes and peas imported into the Asian superpower, while additional 25 per cent tariffs will apply to pork and aquatic products.

The new tariffs are purportedly in retaliation for Canada’s decision to impose a 100 per cent tariff on all Chinese-made electric vehicles and a 25 per cent tariff on Chinese steel and aluminum imports. The Canadian tariffs against China were announced last August, after similar duties were imposed by the United States and European Union. They were based upon the contention that China’s subsidies of its auto industry give it an unfair competitive advantage.

The Chinese government says that the countermeasures announced last weekend are warranted, based upon the assertion that “Canada’s restrictive measures against some Chinese products have disrupted normal trade order and harmed the legitimate rights and interests of Chinese enterprises.”

That may be their perspective, but it is a significant strategic error for the Chinese government to impose this latest round of tariffs against Canadian products. They are misreading the political situation that is rapidly unfolding here in North America and, by doing so, are squandering an unprecedented economic and geopolitical opportunity.

With Canada embroiled in an increasing-bitter trade war with the U.S., and Canada’s traditional allies remaining largely silent out of apparent fear of offending the Trump administration and becoming targets for U.S. retaliation, Canada is facing the current economic crisis on its own.

Burdened with such an enormous challenge, Canada could use a powerful friend, and this should be viewed by China as an ideal opportunity for a less belligerent, more constructive approach.

Canada is seeking alternate markets for its products in order to reduce its trading dependency on the U.S., and China is more than capable of providing that market. In return, Canada is able to provide a stable, long-term supply of oil, a range of minerals, safe, high-quality food products, as well as a range of other commodities, goods and services.

It can also provide access to Arctic shipping routes to Europe, in addition to logistics hubs along the U.S. border and a transportation network with links to all of North and South America.

All of that should be obvious to the Chinese government, which makes it all the more puzzling that the nation would choose to engage in such aggressive trade tactics with Canada at this time.

China appears more interested in extracting petty revenge against Canada — for imposing tariffs after extreme pressure by the U.S. and European Union — instead of capitalizing upon an opportunity that they could never have dreamed of a decade ago.

Instead of intensifying the economic pressure on Canada, China should be doing the opposite. It should be proactively reaching out to the Canadian government and sincerely offering to work with us in good faith to restore the good relations and respect that existed for years between our two nations.

The task would not be easy, as there are past grievances for both sides to overcome, but it would not be impossible, either. The effort would begin with China rolling back the trade sanctions it has imposed, and perhaps Canada doing the same with respect to Chinese electric vehicles.

It would also include China ending interference in our elections, stopping the surveillance and harassment of Chinese individuals in Canada and doing more to stop the flow of illegal drugs from China into Canada.

Those measures, if offered with sincerity and followed up with tangible action, would go a long way toward remaking the Canada-China relationship into one that not only benefits both nations, but potentially reshapes the world’s political dynamics.

There is an old saying that may apply in these circumstances: “You catch more flies with honey than vinegar.”

For too long, China has been unnecessarily aggressive in its dealings with Canada, when a more constructive approach would have likely derived more success. In turn, Canada has become more wary, and perhaps judgmental of its former friend.

That must change. The current trade crisis marks an ideal catalyst for a more productive and constructive Canada-China relationship. It is an opportunity that should not be wasted.