Canadian exports to China surged by 30% in the initial half of 2026, with total trade increasing by 3.6% compared to the previous year, as per Statistics Canada data scrutinized by analysts. The data, part of a recent report released by the Canada China Business Council and the University of Alberta’s China Institute, reflects the revitalization of trade between the two nations amid Canada’s efforts to expand its economic horizons following strained relations with the U.S.
During the first half of 2026, the trade in goods between Canada and China amounted to $66.6 billion, marking a 3.6% rise, while exports witnessed a substantial 30% jump to $21.74 billion year-on-year. The export sector was chiefly driven by energy and minerals, constituting 58.4% of all domestic exports to China during that period, with energy, especially crude oil and liquefied propane, experiencing a significant growth of 81.8%. Additionally, metal ores and non-metallic mineral exports, such as copper ore, escalated by 29%.
“This surge in exports to China during the first half of the year is unprecedented,” stated Bijan Ahmadi, the executive director of the Canada China Business Council. Despite the longstanding trade relations between the two countries, the recent spike in exports can be attributed to various converging factors.
The warming diplomatic and economic relations between Canada and China following years of tensions, particularly stemming from the arrest of Huawei executive Meng Wanzhou in 2018, have played a crucial role in this trade revival. Furthermore, as the trade disputes between Canada and the U.S. intensify, Prime Minister Mark Carney has emphasized Canada’s resolve to establish new trade partnerships and reduce dependency on the U.S.
The substantial increase in oil exports was facilitated by the near-full capacity operation of the Trans Mountain Pipeline in June, enhancing Asia’s access to Western Canadian crude oil. The geopolitical turmoil in the Middle East resulting from the U.S.-Israeli conflict with Iran also led to disruptions in oil shipments, prompting customers to seek alternative sources like Canada.
Moreover, the trade truce between Canada and China, including agreements on imports of Chinese electric vehicles and Canadian agricultural products, has further boosted the bilateral trade relations. This has resulted in significant benefits for Canadian farmers, such as the rebound in canola seed prices.
While imports from China decreased by 5.8% year-over-year, the shift of certain manufacturing activities to countries like Vietnam played a role in this decline. Despite the positive overall trade performance, the report highlights that agricultural exports showed only modest growth, with fluctuations observed in various commodities like lobster.
In conclusion, there is a notable push towards diversifying and strengthening trade relationships, with a focus on engaging with the Asia-Pacific region, which offers substantial market potential. The trade figures from the latter part of the year are anticipated to provide a comprehensive outlook, indicating Canada’s progress towards achieving its export targets to China by 2030.