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Representatives from some of the country’s most powerful financial institutions have joined a trade mission to China to promote Canada in one of the world’s largest markets.
Finance Minister François-Philippe Champagne is in Beijing to secure greater Chinese investment in Canada and increase exports to China by 50 per cent by 2030.
Joining him is Bank of Canada Governor Tiff Macklem, alongside executives from Canadian banks and insurance companies who want to expand their presence in China.
Champagne said these companies “can help to further the objective that has been set by the prime minister.”
Prime Minister Mark Carney set the Chinese export target during a visit to Beijing in January, when he signalled an end to a long freeze in relations by speaking of a shift toward “principled pragmatism.”
In 2018, concerns over whether Chinese tech company Huawei could be used to compromise Canadian cybersecurity — and the arrest of one of its executives on behalf of the U.S. — led to intense diplomatic friction with Beijing.
Those tensions included accusations of hostage diplomacy, election interference and high tariffs on Chinese electric vehicles and Canadian agricultural products.
Carney’s January meeting with Chinese President Xi Jingping offered a diplomatic reset, resulting in an agreement allowing the annual import of 49,000 Chinese electric vehicles at a reduced tariff rate in return for China dropping some of its retaliatory tariffs.
And since U.S. President Donald Trump launched his trade war a year ago, threatening commerce between the North American allies, China has been seen as an even more important trading partner for Canada.
Macklem underlined this in Beijing.
“We talk about diversifying our trade. We need to do it. It’s critical to our prosperity,” he said.
On Thursday, Champagne and Macklem met with leaders of Canadian financial institutions. Among them was Kevin Strain, the CEO of Sun Life, Scott Brison, the vice-chair of BMO Wealth Management and Manulife CEO Phil Witherington.
“We cannot be global giants and depend only on 40 million customers. But by accessing mega economies such as China and India and the United States, we can be a global giant,” Witherington said.
Although China is Canada’s second-largest trading partner after the U.S., Canada’s $34 billion in exports to China last year were dwarfed by $90 billion in imports. The government wants to close that deficit and hopes the financial sector will play a role.
With access to the Chinese market a new priority, regular visits like these will likely become an important part of drumming up business.
“You can fake caring but you can’t fake showing up,” said Strain. “That helps open up doors at the highest levels.”
Among the doors Champagne will be knocking on during his visit is Vice-Premier He Lifeng, who is expected to host the finance minister on Friday.
