Time to re-engage with China

Hey there, time traveller!
This article was published 21/12/2023 (838 days ago), so information in it may no longer be current.

It is time for diplomacy and engagement. It is time to re-engage with China. Manitoba and Western Canada can and must lead the way.

In November, U.S. President Joe Biden and Chinese President Xí Jinping met for four hours of discussions at the Asia Pacific Economic Cooperation summit in the U.S., followed up with two presidents’ brief walk and Biden telling reporters that the conversation had been the “most constructive and productive” between the two men since Biden had come to office.

Country after country has been lining up in Beijing to meet with China’s president and other key officials. This includes countries that have significant disagreements with China, most notably the U.S. and Australia. There has also been engagement at the regional level, most notably the discussions between China’s president and California Gov. Gavin Newsom.

Canada is notable by the absence of such engagement.

There was a time when Canada was not only at the forefront of diplomacy and engagement, it was also a leader in engagement with China.

Canada and Western Canada in particular led the way in the 1960s with the Conservative Diefenbaker government’s sale of wheat to the People’s Republic of China, which Canada did not diplomatically recognize at the time.

In 1970, the Pierre Trudeau government led the way with the diplomatic recognition of the PRC. Canada engaged regularly with China through the Team Canada trade missions with the Chrétien government in the 1990s.

Engagement was always based on the fundamental element of diplomacy. That there would be disagreements, but diplomacy and engagements were the best way to deal with disagreements and to build better relations long-term.

Fast forward to 2023, China is now a growing world power both in terms of its economy and political influence.

There have been a number of difficult issues between Canada and China in recent years, but what is noticeable is the lack of full engagement.

What is often missed in the discussion of Canada-China relations is that, despite disagreements at the national level, at the regional level cultural and economic ties are stronger than ever.

This is particularly the case in Manitoba and Western Canada. China is Western Canada’s second-largest trading partner, and that trade is much more significant than elsewhere in Canada.

It is mutual. We sell minerals, agricultural goods and much more. We import consumer goods and a wide variety of industrial goods. We also welcome many Chinese post-secondary students to Canada. Many have gone on to become permanent residents and citizens.

While Canada as a whole has a significant trade deficit with China, every Prairie province has a trade surplus. We sell more than we buy.

It is ironic that it is often argued Canada needs to diversify away from trade with China. This is often based on an assumption that trade with China is much more significant than it actually is.

Yes, China is Canada’s second-largest trading partner with trade of over $100 billion. But this is far less than trade with the U.S. In Manitoba in the first quarter of 2023, 75.5 per cent of imports came from the U.S. with China accounting for 4.9 per cent. Fully 70.1 per cent of exports went to the U.S. and 9.6 per cent to China. Trade with China has been a key part of Canada’s trade diversification, but there is clearly great potential for more trade.

Some will add the issue of human rights to any discussion of diplomacy engagement. This often ignores Canada‘s own historic human rights record — not only Canada’s genocide of Indigenous Peoples but our treatment of Chinese Canadians. The Sinophobia that led to everything from the infamous head tax on Chinese migrant workers to legislation that was put in place 100 years ago that virtually banned Chinese immigration, including family members of Chinese Canadians.

At a time when there is increasing instability around the world, there has never been a greater need for dialogue and engagement. It is time to recommit to diplomacy and engagement with China — including expanding our trade links.

Manitoba and Western Canada has historically played a key role in trade and engagement with China.

We can do so again at the regional level and by working at the national level.

George Wong is the past president of the Institute of Certified Management Consultants of Manitoba. Steve Ashton is a former Manitoba MLA and cabinet minister.