By John Q. Hosedrinker 
Foreign Affairs Minister Anita Anand has announced a shift in Canada’s stance towards China, now viewing Beijing as a strategic partner despite previously labeling them a disruptive global power. This move aims to recalibrate the relationship, allowing Canada to advance its economic and security interests through dialogue and cooperation. Canada seeks a balance between addressing economic needs and pursuing security and human rights priorities, with a renewed focus on the 2005 strategic partnership agreement. The goal is to build economic resilience and to diversify trade with China, Canada’s second-largest trading partner, while upholding core values.
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Canada in ‘strategic partnership’ with China, minister says – a nuanced tightrope walk
This whole idea of Canada entering into a “strategic partnership” with China – it’s a complex dance, isn’t it? It seems to be the current approach, a balancing act that involves navigating both opportunities and significant risks. The idea is to advance Canada’s own interests, but it’s crucial to understand this isn’t some sudden love-in with China. It’s about finding common economic ground, while keeping a watchful eye on potential threats.
Areas of concern, like security and privacy, are slated for guardrails – meaning the Canadian government will be monitoring and, as it has done before, push back against any overreach. Take, for example, previous instances where China’s attempts to gain control of critical minerals or introduce certain technologies were blocked.
Of course, the backdrop here is pretty significant. The elephant in the room – or perhaps the polar bear – is the United States. While bilateral trade between America and China is huge, America is still eager to sell to China, just on their terms. This seems to be one of the factors at play. Canada is quite clearly charting a multi-pronged approach to diversifying its trade, and it’s a lengthy list including China, India, the EU, Mexico, Indonesia and others.
In five years, the landscape of partners and their share of Canadian exports could be vastly different than it was at the outset of 2025. Will America still dominate the scene? The answer seems to be that it is less certain than ever before. So, in effect, this pivot can be seen as a necessary move.
It’s been noted, what happened with the former U.S. administration? Well, a variety of things impacted Canada’s interests: trade wars, tariffs and “Buy American” rules hurt Canadian jobs. U.S. inflation and rate hikes raised Canadian mortgage and living costs. And the U.S. forced Canada into foreign-policy fights, causing a lot of backlash.
On the other hand, it’s also clear that China isn’t without its own issues. Retaliatory tariffs on farm goods, cyberattacks, and influence operations, not to mention detentions and diplomatic pressure, all create challenges. When you lay it all out there, it’s pretty obvious which country has directly negatively impacted the lives of Canadians more. One thing is certain: Canada should be cautious in its dealings. It does bear asking that this agreement include safeguards. Safeguards to cool it with the espionage, election meddling, and any rogue police stations.
The reality is that China is very active with espionage, hacking, and various other covert activities. And let’s be honest, it’s a complicated relationship. Canada is a country that builds bridges, not walls. You can’t replace the relationship with America, but the relationship with China has been stupidly bad for a lot of reasons. But it’s also necessary.
The discussion quickly turns to potential pitfalls. One obvious concern is that China might flood the Canadian market with cheap, subsidized products, which can damage domestic businesses. On top of that, Chinese EVs may not come at the price point people are hoping for. This is how international diplomacy works. Compartmentalize on certain issues so that you can advance domestic issues.
We also have the idea of self-interest. You can trust China to have their own self-interests at heart. And let’s not forget, they’re not quite as unpredictable as some other players on the world stage. Canada has a long-standing trading relationship with China, with ups and downs, but it’s a known commodity.
One of the more glaring things is Canada is locked into. Canada cannot cancel completely for 31 years. China benefits much more, because of a clause allowing existing restrictions in each country to stay in place. Chinese companies get to play on a relatively level field in Canada, while maintaining wildly arbitrary practices and rules for Canadian companies in China.
In short, there is a whole lot of nuance to this situation. It’s about a measured response to the world. Is China a threat? Yes, but not necessarily a threat to invade tomorrow. It’s a relationship that can be managed if diplomacy is undertaken. It’s about finding that balance between the complex challenges and potential benefits.