Amid the diplomatic row, China’s economic leverage over Canada is greatly exaggerated
To start, while Canada is economically dependent on China, bilateral trade relations between the two countries are a two-way street. Sure, China might not need us as much as we need them, but as an export-focused economy, the roughly $100-billion worth of goods Canada imported from China in 2022 is not inconsequential – especially for a country whose economy has dramatically slowed.
Another priority issue for Mr. Xi is addressing the country’s strained relations and isolation from Western powers, something that has worsened in recent years. China has stated publicly that it wants to “recalibrate” its relations with the United States and its allies – something it knows it must do if the country stands any real chance of capitalizing on a potential post-COVID boom.
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