Canada-China trade up 6.9pc while trade with US shinks 17pc this year
CHINA's share of Canadian trade has risen to record levels, as exports and imports with China represented 6
CHINA's share of Canadian trade has risen to record levels, as exports and imports with China represented 6.9 per cent of Canada's global merchandise trade so far this year, reports Bloomberg.
That is almost a full percentage point higher than the average in the previous three years, and is the highest share on record, according to data released by Statistics Canada.
While China returns to more normal levels of economic activity, lockdowns are hurting Canada-US, the country's biggest trading relationship.
The flow of merchandise with the US is down by 17 per cent this year, and now represents 67 per cent of the total, compared with 69 per cent on average in previous years.
The increase in China's trade share reflects the fact shipments between the two countries are holding up, little changed from a year ago.
While imports of Chinese consumer goods are a major factor, the shift is also apparent in one of Canada's most important sectors: oil. Traditionally, almost the entirety of Canadian crude exports went to the US, and shipments to Asia were rare.
But with its southern neighbour awash with oil that refineries don't need when so many Americans are working from home, at least eight oil tankers have left Vancouver for China this year.
The stable trade flows with China are in stark contrast to the tattered foreign relations between the two countries, which cratered after Canada's arrest of a top Huawei Technologies Co executive in late 2018 and the subsequent detainment of two Canadians by the communist government in Beijing.