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Survey results reveal that Canada-China business was markedly impacted in 2019, with 43% reporting business was down following a record year for trade with Canada\u2019s second-largest trading partner in 2018. Key differences were apparent across sectors, with business up for 22% and stable for 34%. Respondents reported an overall greater cancellation and postponement of travel, disruption to business development, interruptions to signing deals and contracts and, in some cases, decreasing demand for products and services.<\/p>\n
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Two other factors \u2013 economic developments in China and the US-China trade war \u2013 also affected industry disproportionately. Where some Canadian companies were met with unprecedented challenges, others found new business opportunities. Industries that aligned with China\u2019s economic goals reported more positive business results, and while some Canadian firms suffered bans or tariffs, others won business that may have originally belonged to US competitors.<\/p>\n
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Overall business outlook in 2019 remained largely positive, with 43% of respondents claiming optimism about the future of their organizations\u2019 Canada-China business. Nonetheless growing uncertainty has led 33% of Canadian respondents to make China a lower priority in their global plan, with 5% exploring opportunities in other countries. This finding speaks to the wearing down of companies managing multiple challenges in maintaining their Canada-China business.<\/p>\n
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In the wake of the bilateral tensions, survey results show that the majority of respondents feel the Canadian government strategy with regard to China has not been clearly communicated. Survey feedback reveals a clear call from organizations for a specific Canadian government strategy to help alleviate the impact of challenges weighing on Canada-China business while helping to dispel uncertainty, provide direction and better position Canada-China business to succeed and grow.<\/p>\n
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COVID-19 began affecting Canada-China business in January, and respondents largely predicted long-term negative effects on business. Now as China leads the movement to go back to work, Canadian companies working with China are already active in economic recovery. As China gets back on its feet before the rest of the world, business opportunities in China may be more attractive, and Canadian companies should be poised to make the best of those opportunities.<\/p>\n
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\u201cChina\u2019s middle class continues to increase its consumption of imported products. Looking forward, Canada\u2019s ability to benefit from China\u2019s growth will be aided by a removal of the challenges highlighted in this survey. Survey respondents were emphatic in their call for support via a clearer Canadian government strategy for China, which echoes the conclusions of our 2019 survey, where respondents felt that both governments were equally responsible for diffusing the bilateral tensions caused by the detention of citizens of both countries,\u201d says Sarah Kutulakos, Executive Director of the CCBC. \u201cFor the situation to improve, we need a strategy that is in Canada\u2019s best interests, one that allows Canada to thrive and to leverage the economic opportunities that China\u2019s market growth brings.\u201d<\/p>\n
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\u201cCanada remains a long-term non-political supplier of high-quality goods and services to China,\u201d says Graham Shantz, President of the CCBC. \u201cChina is a key, growing market to diversify Canada\u2019s economic interests. China\u2019s government is currently working on its next five-year plan and other key target documents. Canadian companies and educational institutions and governments need to be ready.\u201d<\/p>\n
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