Canadian imports from China hit $100B in 2022, setting new trade record: StatCan – National | 24CA News
Trade between China and Canada hit file ranges in 2022, with imports breaking the $100-billion mark for the primary time, Statistics Canada information present.
Economists and others say companies are trying past political tensions between the 2 nations, as demand ramps up and established provide chains reassert themselves in a post-pandemic world.
James Brander, an economics professor on the University of British Columbia’s Sauder college of business, mentioned within the absence of presidency insurance policies directing in any other case — equivalent to these at present proscribing commerce with Russia — firms wouldn’t prioritize politics.
“Of course, yes, there are tensions. But economic or trade flows, and economic activity in general, isn’t affected very much by the political tensions unless there is some explicit policy,” mentioned Brander.
The Statistics Canada information present Canada imported a file $100,027,968,000 of products from China final yr, up 16 per cent from $86 billion in 2021.
The greatest class of imports in 2022 was client items, at $31 billion, adopted by digital and electrical tools, price $28 billion.
The information present Canadian exports to China additionally reached a historic excessive of $27.9 billion, recovering from a stoop that adopted the 2018 arrest of Chinese Huawei government Meng Wanzhou and China’s detention of Canadians Michael Spavor and Michael Kovrig.
China final yr lifted a three-year ban on Canadian canola that had been imposed after the arrest of Meng, who has since returned to China.
But tensions between Ottawa and Beijing stay excessive amid allegations of Chinese interference in Canadian elections and authorities affirmation of Chinese surveillance operations.
Anastasia Ufimtseva, a program supervisor on the Asia Pacific Foundation of Canada, mentioned that though economics and politics are “very tied” collectively, it may take a very long time for them to grow to be aligned.
In the meantime, companies will abide by world commerce dynamics, and search cost-effective options, she mentioned.
“Potentially in the future, we might observe the changes in trade, they might trickle down, but we still need to be cautious about all the factors that businesses take into account when they form the decision.”
Ufimtseva mentioned it isn’t simple for companies to seek out options to China, the second-largest economic system on the planet.
“Despite a lot of countries saying that post-pandemic, we want to establish alternative supply chain structure, it’s costly and difficult to switch if your business was established, you have your suppliers. It will take such a long time to find alternatives to build that infrastructure,” mentioned Ufimtseva.
She mentioned current provide chains had stabilized after pandemic disruptions.
Daniel Trefler, an economist on the University of Toronto, mentioned manufacturing provide chains can’t be moved simply.
“Of course, that’s extremely difficult to do,” mentioned Trefler. “It’s impossible to do in a short period of two, three, four years.”
China’s consulate in Vancouver final week rejected a report within the Globe and Mail newspaper describing alleged efforts to oust candidates seen as unfriendly to Beijing. The consulate mentioned the report was “smearing and discrediting” China.
The Defence Department and Canadian Armed Forces, in the meantime, confirmed final week that they have been conscious of latest efforts by China to conduct surveillance operations in Canadian airspace and waters.
This report by The Canadian Press was first printed Feb. 27, 2023.
© 2023 The Canadian Press
