00:00Well, China is Canada's second largest economic partner, with two-way trade in 2024 worth around 85 million US dollars.
00:11Now, data for the whole of 2025 isn't out yet, but the first half of last year saw bilateral trade grow,
00:18but it slowed significantly in the second quarter, from 7% growth in the first three months of the year to just 2%.
00:25And that's mainly due to tariffs. Beijing announced a 100% levy on Canadian canola oil in March,
00:33followed by almost 76% on canola seed in August, as well as a 25% duty on pork and seafood.
00:41Well, those were all in response to Canada's 100% tariffs on Chinese EVs and 25% tax on Chinese steel and aluminium.
00:51Now, there have been calls on both sides for a reset.
00:56In October, China's ambassador to Canada, Wang Di, said that if Canada removes the unilateral unjustified tariffs on Chinese products,
01:06China will reciprocate.
01:08Well, that prompted calls for the Canadian government to respond.
01:11At least two provincial premiers said Ottawa should drop tariffs on Chinese EVs,
01:17with one urging Mark Carney to seize the opportunity.
01:19Canola farmers, who rely heavily on exports to China, also want the Prime Minister to get the tariff issue fixed.
01:28Graham Shuntz is the president of the Canada-China Business Council.
01:32I think in the first instance, it re-establishes the habit of meeting between the Canadian leader and Chinese leadership,
01:43which is very important.
01:44Secondly, I think they'll have to address some of the irritants, trade irritants, trade and goods irritants that are ongoing.
01:51And finally, I think it's really important that at this moment, in terms of the global economic system,
01:58that we have a Prime Minister in Canada very capable of talking about the flows of capital,
02:03the flows of goods and the overall global economic framework.
02:07And China, as the second largest economy in the world, has a critical role to play in the decade ahead,
02:13in terms of managing the global economic system.
02:16This visit comes as US tariffs and this America First policy is hitting Canadian exporters and pushing Ottawa to diversify.
02:25How much of the trip is really about managing the pressure from the US?
02:31The domestic economy in Canada, it's true, is in a bit of a soft patch, but it's still growing.
02:36We're not in recession.
02:38At the same time, you're correct.
02:40The Prime Minister has identified the importance of doubling non-US exports as a percentage of total Canadian exports by 2035.
02:49China clearly plays a critical role to that objective.
02:53And I'm delighted in our membership of the 300 members of the Canada-China Business Council are delighted to see that emphasis.
03:00China is Canada's second largest single country trading partner in 2024.
03:05Which industries do you see the next wave of growth coming from?
03:11I think we've seen growth with Canada having increased its ability to export crude oil and liquefied natural gas in 2025.
03:23So I expect growth in energy exports to continue in 2026.
03:28And hopefully in the decade ahead, we can double that yet again.
03:33Secondly, I think there's a lot of potential in green technology and green energy.
03:39Canada has capacity.
03:41China has capacity.
03:42And I think there's a lot of space there for growth in the two-way relationship.
03:47Finally, I think that we can do a lot in financial services.
03:53Canada has a world-leading capacity.
03:55Banking, insurance, real asset management, pension fund management.
03:59So I think there's space there for deepened cooperation.
04:03From the business community's perspective, what do Canadian companies most need from both governments?
04:09I think from both and from a global context, the importance of a growth framework globally,
04:18which is essential for the ability for businesses to invest with an expectation of returns over a decade or decades, indeed, for big projects.
04:30So for the Canada-China relationship, putting in place a framework that gives some stability and access to markets is critical.
04:39And also in terms of the investment framework in both countries.
04:43You speak regularly with members of the Business Council.
04:47What's the most important message that you are hearing from them ahead of this visit?
04:52No, I think from a perspective of Canadian exporters, but Canadian investors, and also the people-to-people ties that we have reflected in the membership of the Canada-China Business Council.
05:04This is education and other areas, tourism.
05:08But I would say that I think it's critical for China at this point in time to continue to play a role that it played in the great financial crisis, for example, in 2008-2009, as a stable source of final demand for the global economy.
05:24I think for our companies and our members, China continuing to play that role is critical.
05:29For example, the China import exhibition that's held every year in Shanghai is a critical signal.
