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Sino-Canadian bilateral trade ties to deepen further

By Ren Xiaojin and Zhong Nan | China Daily | Updated: 2017-12-05 08:00

Sino-Canadian bilateral trade ties to deepen further

Business representatives explore cooperation potential at a Canadian wine exhibition stand during the China Food and Drinks Fair in March. Wang Jun / For China Daily

Two countries' complementary industries, resources make for mutually beneficial opportunities

China and Canada have committed to continuing to diversify their economic cooperation and develop stronger trade ties in the long run, as their products are complementary.

"The improving trade ties between China and Canada will create a win-win situation as China has a profound market for imports from Canada, which can spur an increase in employment in Canada," said Su Qingyi, a researcher with the Institute of World Economics and Politics at the Chinese Academy of Social Sciences in Beijing.

"China can provide Canada with low-cost products for the manufacturing sector in return," he added. "China's outbound investment has been increasing rapidly. If its investment in Canada is also on the rise, it will help to boost the local economy.

"Canada is a country with vast land, abundant natural resources and a smaller population. If it can reach an agreement on exchanges in human resources with China, that can make up for the lack of labor in Canada."

Data from the General Administration of Customs show that the bilateral trade between the two countries amounted to $42.41 billion in the first 10 months of this year, up 14.2 percent year-on-year.

Canada's exports to China, worth $25.77 billion in total between January and October, included agricultural, mining and chemical products, jumping by 15.4 percent year-on-year. It imported $.16.64 billion goods such as machinery and textiles from China, up 12.3 percent.

To further boost bilateral trade volume, the two countries started discussing the feasibility of a free trade agreement in Beijing in late February. The Canada China Business Council estimated that the free trade agreement could result in an additional $6 billion worth of exports from Canada to China a year by 2030, and in the process create 25,000 job opportunities in China.

Wang Huiyao, director of the Center for China and Globalization, a major think tank in China, said China-Canada economic and trade relations will be further strengthened in the future, buoyed by supportive stances on both sides.

Last month Ontario, Canada inked 25 deals worth around C$600 million with a number of Chinese institutes and companies, covering emerging areas such as e-commerce and healthcare.

Among them, the China Automotive Battery Research Institute signed a C$3.35 million deal with the University of Western Ontario. The two sides will set up a laboratory to develop new-generation batteries.

"Partnerships with a global powerhouse like China are critical to Ontario's economic success," said Kathleen Wynne, premier of Ontario, Canada's largest province by population and economy.

There are profound trade opportunities for both countries in the sectors of services, elderly care and winter sports.

Sarah Kutulakos, executive director of the Canada China Business Council, said the service industry was set to boom and the two countries are largely complementary in the sector.

"Canada is able to offer the Chinese service industry experience, professional knowledge and mature business models, which help Chinese companies with their going global strategy," she said.

Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation in Beijing, said, "Chinese companies can also consider investing in private enterprises in Canada, especially in fields such as energy, environmental protection and agriculture, as the country has a sound economic system and encouraging government policies."

Contact the writers at renxiaojin@chinadaily.com.cn and zhongnan@chinadaily.com.cn

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