Summary Report from CCBC’s 47th AGM and Business Forum

 

Nov 3, 2025 | Beijing

 

Executive Summary

 

This briefing document synthesizes key themes from the 47th Annual General Meeting and Business Forum of the Canada China Business Council (CCBC). The central theme is a significant “turning point” in Canada-China relations, marked by renewed high-level government engagement and a mutual commitment to a “pragmatic and constructive” approach. This recalibration is creating new momentum for commercial ties in an economic relationship described as the second most important for Canada globally.

 

Key sector analyses reveal both substantial opportunities and persistent challenges. In Agri-Food, China remains Canada’s second-largest market, with a growing middle class driving demand for safe, high-quality products like seafood, pork, and pulses. However, Canadian exporters continue to face tariffs and trade restrictions. In response, industry is focusing on innovation, such as transitioning pulses from commodities to value-added ingredients, and leveraging e-commerce and technical support to build a competitive advantage.

 

The Energy and Natural Resources sector has been transformed by the expansion of the Trans Mountain pipeline, which has made China one of the top buyers of Canadian crude oil. This, along with emerging LNG exports and clean technology partnerships in areas like hydrogen, underscores a deep complementarity.

 

The discourse on critical minerals, particularly rare earths, highlights a crucial debate: speakers advocate for pursuing robust, distributed global supply chains through cooperation with technologically dominant China, rather than a potentially escalatory and unfeasible goal of “independence.”

 

In Financial Services and Investment, long-standing Canadian institutions like BMO, Manulife, and Brookfield are deeply integrated into the Chinese market through joint ventures and direct investments. The sector sees opportunities in asset management, cross-border financing, and catering to a growing private wealth channel, though it requires navigating complex regulatory landscapes and aligning with China’s strategic policy priorities.

 

Across all sectors, speakers emphasized the foundational importance of business-to-business and people-to-people relationships, which have sustained commercial ties through periods of governmental friction. The role of organizations like the CCBC is viewed as essential for facilitating dialogue, building trust, and advocating for a stable, predictable trade environment. While optimism is palpable, stakeholders acknowledge that geopolitical volatility and commercial risks necessitate careful strategy, diversification, and clear, transparent government policy.

 

 

1. A New Chapter in Bilateral Relations: “A Turning Point”

A consensus emerged among speakers that the Canada-China relationship has entered a new, more constructive phase following a period of significant challenges. This shift is primarily attributed to recent high-level diplomatic engagements.

 

• High-Level Meetings: The meeting between Prime Minister Carney and President Xi on the margins of the APEC Summit in Korea was repeatedly cited as a pivotal moment. They affirmed a “joint commitment to renewing the relationship… in a pragmatic and constructive way.” This was followed by meetings between foreign ministers, trade ministers, and the reconvening of the Joint Economic and Trade Commission (JETC) for the first time since 2017.
• “Pragmatic and Constructive” Approach: This phrase, originating from Prime Minister Carney, was embraced by the business community as the desired framework for moving forward. The CCBC expressed its readiness to support both governments in transforming this vision into tangible commercial outcomes.
• Official Mandate for Progress: Ambassador Jennifer May noted that leaders “directed officials to move quickly to resolve outstanding trade issues and irritants.” This has created a sense of urgency and purpose among government agencies to address long-standing barriers.
• Tangible Outcomes: A significant early result of this renewed dialogue was China’s announcement reinstating Canada’s “approved destination status” for tourism, a move seen as a welcome step toward enhancing people-to-people ties.

 

 

2. Core Sectors: Opportunities and Challenges

Panel discussions provided in-depth analysis of key sectors that form the bedrock of the bilateral economic relationship.

 

2.1. Agriculture and Agri-Food

 

As the historical foundation of the trade relationship, agriculture remains a central pillar. China is Canada’s second-largest market for agriculture, agri-food, fish, and seafood products.

 

Key Opportunities:

• Growing Middle-Class Demand: Chinese consumers increasingly seek safe, high-quality, and premium food products, a demand Canada is well-positioned to meet with its strong brand reputation for quality and safety.
• Food Security Partnership: China’s policy focus on food security and sustainable farming aligns with Canadian expertise and production capabilities in grains, meat, and dairy.
• Diversified Product Demand: The market is highly diversified, encompassing:
  • Seafood: High demand for Nova Scotian products like lobster, surf clams, and scallops, with 85% of Nova Scotia’s seafood being MSC certified.
  • Pork: China is the world’s largest consumer of pork, and the Canadian industry is working to increase exports of fresh chilled meat.
  • Pulses: China has become the world’s largest market for Canadian yellow peas, used in a wide range of applications from vermicelli noodles and protein fractionation to livestock feed.
  • Grains: Saskatchewan is a major supplier of canola, non-durum wheat, and lentils, with a 10-year average crop production of 35 million metric tons.
• Innovation and E-Commerce: The advanced Chinese e-commerce and live-streaming market presents a significant channel for Canadian producers. The success of ordering and receiving fresh seafood within a 30-minute taxi ride was cited as an example of the market’s efficiency.

 

Persistent Challenges:

• Tariffs and Trade Restrictions: These issues remain “at the forefront of our discussions,” affecting Canadian canola, pork, pulses, and seafood.
• Regulatory Cooperation: While relationships between agencies like the Canadian Food Inspection Agency (CFIA) and their Chinese counterparts are generally good, there is a need for continuous work to streamline processes, such as inspections, to enhance efficiency.

 

 

2.2. Energy and Natural Resources

 

This sector is undergoing a strategic transformation, positioning Canada as a crucial energy provider for China.

 

Key Opportunities:

• Crude Oil Exports: The expansion of the Trans Mountain (TMX) pipeline has been transformative. China has emerged as the top buyer of Canadian crude oil from TMX, with exports surpassing C$3 billion by August 2025. Projections suggest exports could exceed 500,000 barrels per day.
• Liquefied Natural Gas (LNG): The LNG Canada project, a partnership involving China, Japan, Korea, and Malaysia, is highlighted as a model of successful international cooperation that endured political challenges due to the shared need for the product.
• Clean Technology and Hydrogen: Chinese firms like Sungrow Hydrogen view Canada as a key strategic market due to its abundant renewable resources, policy commitments, and expertise. There is significant potential for joint R&D and technology partnerships.
• Critical Minerals and Rare Earths: Canada has vast resources, with Alberta alone possessing 29 of the 32 most critical minerals. There is an opportunity to partner with China, the global leader in processing technology, to develop value-added processing in Canada rather than just exporting raw materials.

 

The “Independence vs. Distributed Supply Chain” Debate:

 

• Rahim Suleman, CEO of Neo Performance Materials, argued strongly against the language of “independence” in rare earth supply chains. He noted that China processes 93% of the world’s rare earth magnets and is the undisputed leader in technology.
• He proposed that framing the goal as achieving a “distributed model” or managing “concentration risk” is a more pragmatic and less escalatory approach.
• He suggested that a path forward involves working within China’s rules on technology transfer to build processing capabilities in Canada, potentially by linking access to Canadian raw materials with investment in local value-added processing.

 

 

2.3 Financial Services and Investment

 

Canadian financial institutions have a long and successful history in China, serving as a bridge for capital flows and exporting Canadian standards of governance and risk management.

 

Market Dynamics:

• Capital Flows: While overall FDI into China has declined from its peak, some investors (from the Middle East, and Southeast Asia) are increasing their exposure to rebalance portfolios they feel have become overly concentrated in U.S. markets.
• Policy Alignment: Success in the Chinese market requires being “on the right side of the policy.” Firms are closely tracking the priorities of China’s 15th Five-Year Plan, particularly in renewables, advanced manufacturing, and consumption.

 

 

2.4 Strategic Perspectives from Canadian Financial Institutions

 

The discussions highlighted that Canadian asset managers, banks, and insurers view China as a long-term strategic market where success depends on patient capital, local partnerships, and adapting to structural shifts in consumer and investor behavior. Brookfield outlined an investment thesis built on long-term thematic trends and the view that current market conditions offer attractive entry points. With foreign direct investment significantly reduced, the firm sees a rare entry window and is focusing on sectors aligned with China’s strategic priorities, including renewable infrastructure and domestic consumption. Its ambition to manage onshore RMB funds reflects a deeper move toward localization and integration into the domestic financial ecosystem.

 

BMO emphasized its role as a financial “bridge” rather than a retail competitor by facilitating capital flows for global clients operating in China and supporting Chinese firms pursuing international expansion. Long-standing joint ventures demonstrate the value of combining Canadian governance standards with Chinese market access, reinforcing the importance of partnership-driven models in a highly competitive financial environment.

 

The insurance perspective underscored rapidly changing consumer expectations in China’s vast and sophisticated market. Manulife described its evolution from a traditional insurer into a holistic “life partner,” offering integrated protection, wealth management, and health services. Programs such as “Move,” which promote proactive health management, illustrate a broader industry shift toward innovation-focused business models tailored to demographic changes and rising health awareness.

 

Collectively, the insights highlight that despite geopolitical complexities, Canadian financial institutions remain committed to the Chinese market over the long term and continue to signal strong interest in expanding their activities there.

 

 

3. Strategies for Navigating the Relationship

Speakers consistently highlighted the need for a multi-layered approach to building and sustaining the commercial relationship, emphasizing trust, partnership, and strategic alignment.

 

• The Power of Relationships: The importance of consistent, long-term business-to-business and people-to-people engagement was a recurring theme. These relationships are seen as the “strong backbone” that provides stability during periods of political tension. Organizations like the Canada China Business Council (CCBC) and the China Council for the Promotion of International Trade (CCPIT) are vital partners in this process.
• A “Team Canada” Approach: There is a recognized need for federal and provincial governments, along with industry, to align and “pull in the same direction.” This includes coordinating on trade missions and creating a more cohesive Canadian presence on the ground in China. Federal presence on missions was seen as adding significant weight and attention.
• Chinese Perspective: Chinese officials underscored the resilience of the economic relationship, with bilateral trade reaching nearly US$100 billion in the previous year. They emphasized China’s commitment to creating a market-oriented, internationalized business environment and welcomed Canadian investment, highlighting the country’s massive middle-income group and complete industrial system.
• Trust and Communication: Philippe Rheault, Director of the China Institute at University of Alberta, stressed the need for Canada to do its homework to develop a nuanced policy that clearly articulates “red lights” (where engagement is not permissible) and “green lights” (where it is encouraged), providing clarity and predictability for businesses.