Perspectives from China: Re-engagement Between Canada and China

Following the recent Canadian federal election, the Canadian business community in China has welcomed signs of renewed engagement between our two countries. The resumption of the Joint Economic and Trade Committee (JETC), the recent call between Prime Minister Carney and Premier Li Qiang and the bilateral meeting in Paris between Canada’s Minister of International Trade and China’s Minister of Commerce, signal encouraging steps toward recalibrating the bilateral relationship and addressing long-standing issues impacting Canadian businesses.

Through our ongoing dialogue with both Canadian companies and Chinese counterparts, we have heard a clear willingness to work collaboratively to resolve challenges. However, it is also evident that mutual trust must be rebuilt. Progress will likely come gradually, through sustained, step-by-step negotiations. We remain cautiously optimistic and committed to representing our members’ interests throughout this process.

Over the past month, we’ve been encouraged to see a growing number of executives returning to China—reconnecting with partners, addressing operational issues, and exploring new opportunities. The pressure for diversification caused by the current U.S. administration’s protectionist policies, the post-COVID recovery, increased flight availability, and shifting public sentiment may all be contributing factors to this new dynamic. Given that China remains a highly competitive and evolving market, continued on-the-ground engagement is essential to success. With these recent developments, we believe this is a strong opportunity for Canadian executives to re-engage at levels comparable to their American and European counterparts.

CCBC Engagement Highlights

At CCBC, we’ve actively engaged with regional governments to advocate for our members and identify new areas of opportunity. Some recent highlights include:

• Shandong: Discussions on potential cooperation in sustainable agriculture.
• Chengdu: Participation in international dialogues on emerging industries in Sichuan and municipal-level partnerships.
• Heilongjiang: Engagement on potential trade collaboration in the winter economy, agri-food, and natural resources.
• Guangdong: Exploration of investment opportunities within the province’s Free Trade Zones.

We also launched the inaugural session of our Canada Ready Series, designed to connect Chinese companies interested in learning more about Canadian business culture with our members. This initiative is helping to foster better understanding and collaboration.

From our engagements in Beijing, Shanghai, and across China, a few clear themes are emerging:

• Open for Business: China remains receptive to foreign direct investment, with each province offering unique comparative advantages.
• Policy Changes: The regulatory environment is evolving rapidly, underscoring the importance of staying well-informed. Multiple rounds of stimulus have been announced to boost the economy, and the upcoming Five-Year Plan may set new targets that will be critical for Canadian businesses.
• Constructive Dialogue: Chinese authorities are open to hearing from foreign businesses about current challenges and the impacts of existing policies.

If you’d like to learn more about these opportunities or share your perspectives, don’t hesitate to contact your Chapter Director.

Insights from the Broader Foreign Business Community

Recent sentiment surveys published by other international chambers in China highlighted that geopolitical uncertainty, particularly around U.S.-China relations, continues to be a major concern for many companies. The rise in local competition, particularly in key industry sectors where China is particularly strong, also presents challenges for foreign businesses. Nevertheless, China continues to signal its commitment to improving the business environment for foreign firms. New policy measures and targeted stimulus packages may offer opportunities for Canadian companies, especially those that remain actively engaged on the ground.

A growing concern among foreign businesses is the operational disconnect between headquarters and their China-based teams, exacerbated by broader “decoupling” trends. This dynamic is complicating communication, decision-making, and local responsiveness, making it harder for local teams to fully seize emerging opportunities.

Unlike European and American companies, whose key challenges often differ, the Canada-China trade relationship remains heavily commodity-based. This reality brings its own set of considerations. However, existing limitations on trade and investment in certain sectors may be addressed through renewed bilateral engagement. The UK and Australia offer useful examples—both have seen increased bilateral dialogue result in more predictable environments for business. According to AustCham’s recent survey, improved trade dynamics have prompted many of their members to recalibrate long-term plans and increase investments in China.

Looking Ahead

We are closely monitoring policy developments, including on export of rare earth elements, which could impact key sectors such as automotive, aerospace, and clean technologies—all vital to the Canadian economy.

Key upcoming initiatives in China include:

• Expanded Canada Ready Series events to promote dialogue and knowledge-sharing.
• Targeted roundtables with provincial and municipal governments.
• Participation in major trade fairs, including CISCE and CIIE.
• CCBC business missions focused on sector-specific business development.
• Our Annual General Meeting in Beijing on November 3.

As bilateral engagement gains momentum, we want to hear from you—our members—about your priorities, challenges, and the opportunities you’re pursuing in China. Your input will directly inform our advocacy and programming in the months ahead.

We also believe that now is the right time to encourage broader engagement at the provincial and municipal levels. In many of our sister province and sister city relationships, we’ve observed that other countries—including like-minded allies of Canada—are moving more swiftly to revive and expand local partnerships.

Let’s make sure Canadian companies remain visible, active, and well-supported in this evolving landscape.