Ambassador Warns Canada Against Using China as ‘Bargaining Chip’ with the U.S.

Wang Di, the Chinese ambassador to Canada, has issued a warning to the Canadian government about the dangers of using China as a "bargaining chip" in its trade negotiations with the United States. He emphasized that China is open to pursuing a bilateral free trade agreement if Canada takes steps to eliminate the existing barriers to Chinese investment.

During an interview, Wang assured that China respects Canada’s sovereignty and territorial integrity. He mentioned that cooperation should be based on mutual respect and understanding while reserving differences. Wang's comments come in the context of heightened tensions between the U.S. and Canada, particularly regarding economic policies

Trade Relations Overview

Canada and China began discussing a free trade agreement in 2017 amid flourishing trade relations. However, progress halted following diplomatic tensions when Canada arrested a Huawei executive at the request of the U.S., leading to retaliatory actions by China against two detained Canadians. Although some resolution occurred in 2021, relations remain tense.

As part of the U.S.-Mexico-Canada Agreement, Canada is required to notify other member countries before entering trade discussions with any non-market economy, a clause that China has criticized. Recently, Canada has adopted a more stringent trade posture, implementing higher tariffs on various Chinese products, which in turn led China to impose countermeasures against Canadian exports.

Future Cooperation

Wang noted that, despite the issues, there is still potential for a trade relationship between China and Canada. He indicated that both sides need to work collaboratively to establish a stronger foundation for discussions about a trade deal. He also mentioned that Canadian energy firms have expressed interest in increased cooperation regarding the sale of energy resources to China.

Wang highlighted that the expansion of the Trans Mountain pipeline will facilitate greater oil exports to Asian markets, which is favorable for both parties. The Chinese market is becoming increasingly interested in Canadian energy, provided the quality and pricing align with expectations.

Ongoing Challenges

Despite efforts for cooperation, recent actions by Canada suggest a move towards greater caution in economic engagement with China. This includes restrictions on Chinese investments in vital Canadian sectors and bans on major Chinese tech companies. Wang remarked on conversations he has had with Canadian leaders and the frequent calls for a closer partnership between China and Canada.

However, Wang also dismissed various accusations from Canadian officials regarding potential election interference by China, labeling these claims as unfounded. He expressed a desire for more respectful and constructive dialogue between the two nations.

In summary, the Chinese ambassador's statements underline his country's readiness to engage economically with Canada, but he insists that mutual respect and cooperation must guide the relationship, free from external pressures.

China, Trade, Canada