Canada-China Bilateral Relations and Trade

This assignment examines the multifaceted relationship between Canada and China. It delves into the historical context of bilateral relations, analyzes key areas of economic interdependence such as trade and investment, and assesses environmental cooperation efforts. The assignment also explores the influence of geopolitics on the Canada-China relationship and highlights potential challenges and opportunities for future engagement.

Research Project

Table of Contents
INTRODUCTION...........................................................................................................................1
ARGUMENTS.................................................................................................................................1
SUSTAINABILITY.........................................................................................................................6
Sustainability and Environmental Security.................................................................................6
Sustainability and Economics and Trade between China and Canada.......................................9
ANALYSIS OF PRIMARY AND SECONDARY DATA...........................................................11
Primary Analysis.......................................................................................................................11
Secondary Data.........................................................................................................................17
DISCUSSION................................................................................................................................18
RECOMMENDATIONS...............................................................................................................19
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................21

Index of Tables
Table 1: Canada Import and Export with China............................................................................12
Table 2: Total import and export of Canada with China...............................................................13
Table 3: Total import and export of China with Canada...............................................................14
Table 4: Total import and export of China with Canada...............................................................15
Table 5: Merchandise imports from China....................................................................................16

INTRODUCTION
The relationship between China and Canada established on 13th October 1970 when the
Canadian Prime Minister Pierre Elliot Trudeau initiated negotiations with the People's Republic
of China (Foster, 2017). The diplomatic relationship robust the economies and trade between
both the countries. In accordance with this context, the following research paper aid in
examining the relationship between Canada and China. This paper argues that Canada and China
can improve their relationship through targeted sustainable policies in economics and trade. The
arguments will be mentioned in the following research paper regarding sustainability,
environmental security and economics & trade that took place between both the countries. This
will help in analysing the degree of relations shares by Canada and China respectively. In order
to increase the growth capacity and fiscal conditions, balance of trade plays a vital role. The
growth and development in both the nations will be analysed in this research paper by
highlighting the technological growth and development. In this context, the trade that took place
between both the nations will be identified by analysis the data which will be acquired from
primary and secondary sources. Critical discussion of the data and information will be made in
order to increase the effectiveness of the thesis. Recommendations will be provided in the
research paper, that will aid in providing idea to improve the sustainability and trade between
both Canada and China. Eventually, this research paper will assist in identifying and analysing
the effectiveness in the relationship between Canada and China.
ARGUMENTS
China and Canada has good economic relationship and in early 1960s the sole economic
contact between theses two countries that consisted of Canadian exports of wheat. They import
and export the products in different countries to increase firm performance in the world. China is
now Canada's third biggest export destination and second biggest source of imports worldwide.
Government of both countries give innovative plans and policies which helps to increase the
economic condition of country. Government provides effective and efficient policies to increase
the market share and connect large number of consumers from different countries. China and
Canada import and export the products to other countries that helps to increase economic growth
of a country in the world. China continuously invest in the Canada to get effective opportunities
to increase their economic condition in the world. Many of the companies invest in the china
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companies to get higher performance in the world. Both countries' government gives appropriate
policies of the trade to increase economic growth in the world (Flynn and et.al., (2013)).
Current condition of relationship between china and Canada is good because both
countries import and export products to increase economic growth in the world. In the early
1990s, china has 2% global export and 1.8% of imports. Both companies import and exports
their products and services to each other to increase the level of growth. To increase a level of
economic growth they must need to export product and services that gives more advantages to
the countries. Government of china provides appropriate rules and regulation to the firms to
expand their business in other countries. Firms also follows different types of advanced
technologies that gives higher profit to the company. China government gives the policies of the
development to the companies that help to get higher performance in a world. It imports the
products and services in different areas such as clothing and machinery. They should give items
in various area because it helps to get more profit in the world and also helps to expand their
business in the world (Fraser and et.al., (2015)). China is the fastest growing major trading
partner because the relationship between them is effective and they import and export their
products to increase an economic growth in a world. Entities of china follows different types of
innovative and advanced technologies that gives more profit to them to increase a level of
growth.
Trade policies
Canada government gives innovative trade policy to the companies but the china
government it gives effective polices to an entity that has negative impact on the country. It
directly affects the country growth so government must need to give effective polices to an
entity. Canada provides many products and services to the china country such as
telecommunication items, motor vehicle and motor vehicle parts to them. By providing huge
number of products to the country they can easily get higher performance and productivity in a
world. There are good relationship between the china and Canada. Canadian companies invest in
the china companies to get higher performance in a world. Organizations of the Canada has
opportunity to increase a number of companies in different countries. Both countries have good
relationship because government provides effective and efficient policies of trade that gives
higher profit to the firms (Geng, Du and Ren, (2012)). Metals and minerals is the fast growing
products that gives higher productivity to the country and it also helps to increase the sales
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revenue of the firms. Total exports from the Canada is 28% and it is increases day by day. It
gives innovative items and services to the china to increase an economic growth in the world.
By exporting the products with the other countries then they can easily get desired
objective in a world. Companies of the china invent innovative products and services to increase
overall firm performance in a world. They also need to follow advanced and enhanced
technologies to produce good quality product in a market that helps to get desired goal. Canadian
exports' items of agricultural and food items to the china to increase economic growth in a world
(Hao, Zou and Lu, (2013)).
China exports the products and services in three areas such as clothing, toys and textiles
to Canada. By providing the effective and good quality products to the country they can easily
get desired target in a world. China organizations must give items in various fields such as food
and grocery products that gives more enhancement and also helps to expand their business in
other countries. Government also provides trade policies to the companies to increase their firm
performance in the world. Many of the firms of china are trying to increase productivity by
applying new technologies of the innovation (Hartig, (2012)).
Government also gives an appropriate trade plans to get higher performance and also
helps to expand their business in a world. By providing products in various area sit gives more
advantages to maintain relationship between the countries. Companies must follows different
types of strategies and approaches to innovate their products in the world. Innovation is the best
way to get desired target. China must need to export new products to increase the level of
economic condition of a country. There are different types of technologies that gives more
enhancement to the firm to sell more products in the world. Government must need to give
appropriate trade plans and policies to an organization to product a product in a world (Zhao and
et.al., (2014)).
Economic polices for growth
China government provides appropriate and effective polices to the companies to grow in
the companies in the world. By giving effective plans and policies for a growth firms can easily
get higher performance and productivity in the world. There are economic policies that gives
more advantages to them. China and Canadian import and export their products based on the
client needs. Firms are invented new item and services to increase a growth in the world. The
best way to increase the economic growth in the world is to innovate their entity products and
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services based on a consumer needs (Yu and et.al., (2013)). Government also research the market
condition of china in a world and based on that only it gives appropriate policies to the entities.
For the economic growth firms must use advanced and enhanced technologies of the production
which helps to increase overall productivity in the world (Lien and Cao, (2014)).
According to the government of china, it can be concluded that china create a firewall
financial risk, bond default etc. By invent the firewall in the company it gives more profit to the
firm to overcome specific risk. To increase an economic growth in a world, government gives
the appropriate policies which name is economic reform. This gives more advantages to the
companies to increase overall firm performance in a world. Economic reform includes mainly
four parts such as creation of special investment zones, effective and efficient investment of
foreign capital, increment in foreign trade, advanced management technologies. Firm must need
to use advanced technologies of the production and management that gives more enhancement to
the companies for the higher growth (Liu and et.al., (2012)).
As per the property policies, CICC report noted that china needs to develop the real estate
market through in land supplier in different countries. China needs to increase their firm
performance by providing innovative and effective products to the Canadian. Government of the
china gives appropriate and effective polices of economic and trade policies that helps to expand
their business in the world. Chinese growth is in the manufacture sector because it gives
advanced and innovative items to the customers (Liu and et.al., (2012)).
Canada government provides effective and efficient policies that helps to increase a level
of growth in the world. It has main objective to get higher performance in the world by giving
appropriate products and services. It provides effective rules and regulations, rule of law to the
country to increase the level of economic growth in a world. There are different types of laws
and policies of economic that gives more efficiency for the growth. Canada has a benefit from
the china because china invest more in products and services and they also increasing the two
way trade (Tugcu, Ozturk and Aslan, (2012)). China and Canada has good relationship between
them because it provides good quality products to the other countries. Both countries give
economic and trade policies that helps to increase the level of growth in a world. China must
need to export the products and services in different areas that gives higher performance and also
helps to expand their business in the world. Companies of the china must use advanced
technologies of the production that helps to increase a level of economic growth. Government
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should give plans, policies that gives a way to enhance the growth in a world. Canadian
companies use various advanced technologies that gives more profit to an entity. It also helps to
grow in a world (McGee, (2012)).
Further, to work with china and share their ideas in different areas such as health,
regional and environment. Government also gives an effective policy based on the issues that
helps to overcome them. For the higher growth in a world Canada set the target that, Canada
must be the preferred destination for the Chinese peoples and visitors. It also decides to give
good quality products in different areas based on their demand. By this objective Canadian can
easily get higher profit sand also get desired target in the world. There are different types of
technologies and policies that helps to get desired goal in a world (Nedelcu, (2012)).
Sustainability and environmental security
China plays the biggest political roles in the world. There are different types of
environmental factors that have negative impact on the country growth such as air pollution,
water resource management and climate changes. Government of the china gives effective and
efficient policies to the firms to maintain environment factor. There area various plans and
policies that helps to increase the level of growth in a world. In china there are main six factors
that affect the environmental security such as ecosystem, food safety, energy and urbanization.
Government has a responsibility to provide effective policies that control the environmental
security. It also gives plans and policies that helps to maintain and control an environmental
security in the world. China government also gives the policies and laws to control an
environmental security such as air pollution law and environmental protection law that gives
more profit to protect an environment in the world (Nedelcu, (2012)).
Main factor that affects the environmental security in Canada is that arctic and global
environmental changes. To control the security of the environment, the government is
responsible to provide effective and efficient policies that gives the security to them. There are
different types of factors that directly affects the environment such as air pollution and global
changes in an environment. There are different types of acts that helps to give higher security to
the environment. There are various acts and laws for different environmental problems. Fore the
environmental protection the department of environment act, water governance and legislation.
They give protection to an environment and all the peoples needs to follow it (O’Neil and et.al.,
(2014)).
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For the pollution prevents Canadian environmental protection act 1999, Antarctic
environmental protection act are helps to overcome the pollution in the country. All persons have
a responsibility to follow the rules and regulation that give more advantages to secure the
environment. Government needs to provide more and innovative policies to increase the level of
environmental security.
SUSTAINABILITY
Sustainability and Environmental Security
Sustainability is defined as the process of consuming the natural resources in a systematic
way, that current needs can be fulfilled without compromising the future needs. Sustainability is
the property of biological systems to remain divers and productive. It is the process in which the
direction of investment, exploitation of resources, orientation of technological development and
institutional change are all in harmony to enhance both current and future potential to meet
human needs and aspirations (Safdar and et.al., 2017). In today's sustainability is very important
aspect as due to increase in bilateral trade between countries and globalisation new organisations
are rising rapidly. Moreover, sustainability is the ability to be maintained at a certain rate or
level. In this aspect sustainability in the relationship between Canada and People Republic of
China is very essential in order to increase the developmental activities in both the countries.
Since the inception of the diplomatic relationship between China and Canada, incremental
progress can be observed in both nations.
The Government of the People's Republic of China and the Government of Canada share
a commitment and responsibility to sustainable development. Our collaboration benefits from
our various experiences as nations of vast landscapes with diverse populations, topographies, and
climates (Yang, 2016). Both Parties recognise a mutual interest and will benefit from expanded
cooperation on environmental issues. The government of both the countries have in place a
number of specific agreements and arrangements including the General Agreement between the
Government of the People's Republic of China and the Government of Canada on Development
Cooperation; the Memorandum of Understanding on Cooperative Meteorological Programs; the
Memorandum of Understanding on Environmental Cooperation; and the Memorandum of
Understanding on Renewable Energy and Energy Efficiency (Woon, 2014). Both Parties are also
working successfully together through the China Council for International Cooperation on
Environment and Development in support of the Chinese government's efforts to promote
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environmentally sustainable development. To prepare for the 21st century, Both Parties have
developed the following framework within which to cooperate further on the environment:
 Environmental cooperation between Both Parties should continue to be guided by the
principles contained in bilateral agreements as well as international declarations and
agreements such as the Rio Declaration on Environment and Development, the
Convention on Biological Diversity, the Framework Convention on Climate Change and
the Kyoto Protocol.
 Both Parties will continue to strengthen existing bilateral cooperation on a broad array of
environmental issues.
In this context several memorandums of understanding, frameworks and legislations passed by
the government of both the countries. Some of which are as follows: Memorandum on Climate Change Cooperation: The MOU signed between the
countries on 3rd December 2009 during Prime Minister Harper's tour to China (Luo,
2015). The focus of memorandum of understanding is to improve the national strategies
in order to improve the climatic conditions of both the nations.
 The Canada-China Climate Change Working Group (CCWG): The work group was
established in March 2004. The motive of Climate Change Working Group is to respond
to climate change that impacts on the natural resources of Canada and China. The
working group priority concerns were investing in renewable source of energy, using
clean energy technologies, sustainable development, etc.
Environment and Climate Change Canada has a long-standing and successful history of
cooperation with China dating back to mid-1980s on environmental issues of mutual interest.
The Department has collaborated with China on a number of issues relating to environmental
protection and pollution prevention (Tan and et.al., 2014). Engagement with China is a key
component of Environment and Climate Change Canada’s mandate to protect and enhance the
quality of Canada’s natural environment as environmental issues are not confined to political
boundaries.
In order to reduce carbon emission and greenhouse gases in the environment of the
countries, both the parties are making diligent efforts by investing in clean and green energy. The
Minister of Environment and Climate Change, the Honourable Catherine McKenna on her China
visits stated that due to rapid increase in the pollution level of the country and dynamic changes
7

and transformations in the environmental conditions, Canada and China needs to work
cooperatively and collaboratively in order to tackle the climatic change increase environmental
security (Fen and Latif, 2014). There are approximately 750 organisations that deals with clean
and green technologies across Canada and are willingly ready to lay their investment in China.
This step robust the relationship between China and Canada eventually by providing
employment to more than 10000 Chinese employees. This implies that the ties between both
nations are strengthening day by day because of efficient governmental policies and
amendments. The increase in pollution, emission of greenhouse gases and generation of carbon
emission in environment impacts on the environment negatively. The climate is transforming day
by day and weather in China is changing rapidly.
More than 760000 people died in China due to increase in air and water pollution in the
country. Moreover, pollution in Canada is also increasing as due to increase in air pollution more
Canada has observed approximately 20000 premature deaths in the country. Further, the trade
took place between both countries by ships also responsible for increasing the level of air and
marine pollution (Wang, Fang and Zhou, 2016). Thus, in order to reduce the level of pollution
both the countries sign a memorandum in order to eliminate the pollution by implementing use
of clean and green energy like solar, wind and hydro energy. This will aid in increasing
sustainability in the climate and environment can be protected efficiently. On November 19th
1998, the goals and objectives related with the Framework Statement for Cooperation on
Environment into 21st Century was signed in Beijing by both Government of Canada and
Government of People Republic of China. On April 16th 1999, the Environmental Cooperation
Action Plan was signed in Ottawa by the government of both the nations. This increases and
strengthen the relations between the political parties of both the countries. Thus, both the great
nations are determined to invest in green and clean energy in order to reduce the impact of green
house emission and pollution in the environment. The use of renewable source of energy will aid
the government to concentrates on reducing the carbon emission effectively and efficiently.
There are many organisations in Canada that specialises in clean energy resources. The
government of Canada and government of China now provides all the essential resources to the
corporation in order to increase their business capacities so that they can work diligently to
promote sustainability in the country (Bildirici and Bakirtas, 2014). This step increases the
sustainability and aid in providing the environmental protection efficiently. Final Environmental
8

Assessment of Canada & China, Foreign Investment Protection Agreement (FIPA) negotiations
which was signed between the governments of both the countries on 9th September 2012 in order
to increase new investments that will aid in protection of environment and climate of the
countries. The Framework provides methodologies for conducting environmental assessment of
trade or investment negotiations. It is flexible and agile which helps in accomplishing two
important objectives:
 The first objective is to help Canadian negotiators to integrate environmental
considerations into the negotiating process by providing information on the possible
environmental impacts of the proposed agreement (Zhang and et.al.,2014). As such,
negotiators and environmental experts are involved in the EA and work proceeds in
tandem to the negotiations.
 Responding to the environmental concerns which are expressed by the public is the
second objective of the framework (Canada-China environmental agreement summary,
2017). The Framework contains a strong commitment to communications and
consultations throughout each environmental assessment of a trade or investment
negotiation.
In order to protect the precious environment and climate of both the nations the government of
Canada and China are working abreast and diligently so that the pollution level can be controlled
and emission of greenhouse gases in the stratosphere can be eradicated. The steps, policies and
framework established by the government of both the countries will not only aid in improving
the sustainability among both the countries. This will strengthen and robust the existing
relationship shares between the Canada and People Republic of China.
Sustainability and Economics and Trade between China and Canada
Canada and People Republic of China share a long-standing and robust bilateral
relationship. The two countries have a share interest in strengthening the bilateral economic
relationship thorough promulgates two way trade in goods and services. After the visit of Prime
Minister of Canada Stephen Harper in China in 2009, the governments of both the countries
issued a joint statement outlining the strong trade and economic complementarities between the
two countries. The political leaders of China and Canada cooperatively and collaboratively
working in order to improve the bilateral trade practices across the nations. Canadian and
Chinese officials collaborate regularly through a variety of bilateral trade and investment
9

mechanisms, notably the annual Joint Economic and Trade Commission (JETC), which is a
long-standing Deputy Minister/Vice Minister-level forum to discuss key Canadian and Chinese
trade and investment issues (Foster, 2017). In June 2010, Canadian Prime Minister Stephen
Harper and Chinese President Hu Jintao instructed officials to explore means of deepening the
Canada-China economic relations by establishing a working group under the Joint Economic and
Trade Commission. In this context, this part of research paper will investigate the trade and
economics policies that shared by China and Canada which aid in increasing their national
economy and assist in nurturing the relationship between both the countries. The Economy of Canada: The economy of Canada is strong and efficient which shows
steady growth and expanding at an average rate of 1.8% annually (Safdar and et.al.,
2017). Further, the Canadian economy was one of the most resilient economies among
the world as at the time of global financial crisis, the economy of Canada faced minor
issues and recover almost all the damages. The Economy of China: The Chinese economy is rapidly increasing and has been
particularly remarkable which grows at an average rate of 10.5% from 2000-2011. This
growth increases the national economy of the country and strengthen the sectors related
with manufactures and exports.
The economic cooperation between Canada and China
Canada and China have a long-standing and healthy bilateral relationship. The modern
bilateral trade relationship began in the 1960s with sales of Canadian wheat to China. After the
establishment of diplomatic relationship between both the countries in 1970 the trade between
China and Canada embarked (Yang, 2016). In 1973, the government of People Republic of
China and government of Canada signed a Trade Agreement between the both the countries. In
1979, Canada became Chinas' most preferential trade and tariff partner.
In 2001, China got access to World Trade Organisation (WTO) which aid in
strengthening the commitment to a robust multilateral trading system in order to enhance the
trade of goods and services activities between both the countries (Canada China Relationship,
2016). Canada and China cooperate extensively under a wide range of bilateral agreements and
memorandums of understanding in the fields of science and technology, energy, forestry, clean
technology, agricultural development, life sciences, maritime transport, and many more (Woon,
2014). The bilateral trade and investment strengthen the relationship between China and Canada
10

promulgates rapidly over the last decade. Now China is considered as the second largest trading
partner of Canada after United States of America and Canada is considered as the thirteenth
largest trading partner of China.
Canada imports mineral fuels and oil, motor vehicles, nuclear reactors, boilers and
machineries, precious stones and jewellery from China whereas China imports electric
machinery, optical and medical equipment, furniture and other raw materials from Canada.
Further, Canadian government imports agricultural products and raw materials, aerospace
equipments, natural resources and mining resources from China (Luo, 2015). In 2009, the total
bilateral trade took place between Canada and China accounts for $50.8 billion. 87% imports
from China accounts for manufactured goods, clothing and textiles raw materials. Further, many
small and medium enterprises from Canada have established their markets in China and many
organisations from China are heavily investing in Canada thus, strengthening their existing
relationship effectively and efficiently.
ANALYSIS OF PRIMARY AND SECONDARY DATA
Primary Analysis
In order to conduct the primary analysis, the data has been collected from governmental and
authorise websites of Canada and website. The collected data is in tabular and chart form which
is presented below:
Table 1: Canada Import and Export with China
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Canad
a
export
to
China
2.6 2.4 3.2 5.1 6.1 6.8 8.8 10 9.9 12.8 17.1
Canad
a
Import
s from
China
8.1 10.1 13.4 18.7 24.5 30.6 35.8 39.9 35 43.4 48.7
11

The above table shows the amount of imports and export done by Canada from year 2001-2011.
From the above table it can be understood at Canada imports are more than the exports from
China. Due to robust relationship shared between both the nations, there was free flow of goods
and services. This increases the national economy of the countries and they were able to increase
sustainability in the environment. The total trade increases from $10.7 billion in 2001 to $65.8
billion in 2011 . This shows that the relationship share by the governments of both the country
impacts positively on the merchandise trade and tariff policies.
Table 2: Total import and export of Canada with China
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total 10.7 12.5 16.6 23.8 30.6 37.4 44.6 49.9 44.9 56.2 65.8
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The total bilateral trade between both the countries increases rapidly. In the times of
global financial crisis in 2007-2008, the imports has been increased tremendously in Canada.
Further, the total trade between both the countries recorded in 2011 was around $65.8 billion.
Table 3: Total import and export of China with Canada
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
China
export
to
Canad
a
3.3 4.4 5.6 8.1 11.45 15.49 19.39 21.79 17.69 22.19 25.19
China
Import
s from
Canad
a
4 3.59 4.39 7.39 7.49 7.69 11.1 12.79 11.79 14.8 21.6
13

The above chart shows the amount of import and export done by China with Canada from
period between 2001-2011. After analysing the above table, it can be understood that China
export more as compared to import (Canada-China Economic Complementarities Study, 2017).
This aid in boosting the national economy of the country and assist in maintain and strengthening
the existing relationship shared by the government of both the countries. In 2011, there was
subtle difference between imports and exports can be observed. Due to increase in
memorandums and flexibilities in the policies, the merchandise trade between both the countries
increases rapidly.
Table 4: Total import and export of China with Canada
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total 10.7 12.5 16.6 23.8 30.6 37.4 44.6 49.9 44.9 56.2 65.8
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The above table shows the aggregate trade that took place between China and Canada from
2001-2011. After analysing the table and chart, it was identified that the trade between both the
nations increases after 2005 (Tan and et.al., 2014). At times of global financial crisis, the trade
practices increases in order to control the economic situations of the countries. Further, due to
increase and agility in the policies, the merchandise trade increases to $65.8 billion in 2011. This
implies that due to effective and efficient trade practices the relationship shared by both the
countries increases rapidly.
Table 5: Merchandise imports from China
Merchandise imports from China Percentage
Electric Machinery 24.10%
Machinery 19.10%
Furniture & Bedding 5.60%
Toys, Games & Sport equipments 4.80%
Articles of Iron Or Steel 4.00%
Apparel 7.40%
Plastics 2.90%
Footwear 2.80%
Motor Vehicles 2.80%
Leather 1.90%
Other 24.60%
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The above chart shows the merchandise imported from China in 2012 by Canada. After
analysing the chart, it can be understood that electric machineries was imported more from
China. It accounts for 24.10% of the total imports. Many other items also imported which
includes, plastic, leather, footwear, motor vehicles, etc. from China. This implies that the
relationship shared by both the nations is effective and efficient (Fen and Latif, 2014). Canada
and People Republic of China share a long-standing and robust bilateral relationship. The two
countries have a share interest in strengthening the bilateral economic relationship thorough
promulgates two way trade in goods and services.
Secondary Data
The relations shared by the government of Canada and government of People Republic of
China is efficient. Due to increase in the flexibilities of policies and governmental interventions,
the trade between both the countries increases rapidly (Canada’s State of Trade: Trade and
Investment Update – 2013, 2017). Canadian government is ready to invest in clean energy in
China by providing them effective technologies and laying huge investment in China. Further,
China continues to be the second largest merchandise trading partners of Canada following after
United States of America. The Canadian Direct Investment (CDI) to China in 2009 was account
for $3.3 billion (Wang, Fang and Zhou, 2016). Canadian firms and large organisations deals with
16
24.10%
19.10%
5.60% 4.80% 4.00% 7.40%
2.90%
2.80%
2.80%
1.90%
24.60%
Electric Machinery
Machinery
Furniture & Bedding
Toys, Games & Sport equipments
Articles of Iron Or Steel
Apparel
Plastics
Footwear
Motor Vehicles
Leather
Other

clean and green energy laying their investments in China in order to reduce the Carbon emission
in the country. The Chinese investment in Canada in 2009 was approximately $8.9 billion which
was the highest investment as compared to the previous years. The government of both the
countries are determined to eradicate the poverty level and pollution level in their country and
thus implementing various policies that motivates the organisation to increase their investment in
the country effectively and efficiently (Bildirici and Bakirtas, 2014). Majority of products and
services imported by the Canadian government accounts for natural resources, mining and
minerals, agriculture resources, electric machineries, etc. The bilateral trade and investment
strengthen the relationship between China and Canada promulgates rapidly over the last decade.
Now China is considered as the second largest trading partner of Canada after United States of
America and Canada is considered as the thirteenth largest trading partner of China.
DISCUSSION
In this part of the thesis, the discussion of the collected data and interpretation will be
made with respect of arguments that were discussed. From the analysis of the primary and
secondary information, it was identified that China and Canada has good economic relationship
and in early 1960s the sole economic contact between theses two countries that consisted of
Canadian exports of wheat. They transfer many products and swerves in different countries to
increase their market share in the world. China is now Canada's third biggest export destination
and second biggest source of imports worldwide (Zhang and et.al.,2014). China is the second
largest trade partner of Canada and Canada is the thirteenth largest trade partner of China. The
government of Canada and the government of People Republic aim to strengthen their
relationship by formulating and implementing specific policies and signing various
memorandums. Canada provides many products and services to the china country such as
telecommunication items, motor vehicle and motor vehicle parts to them. By providing huge
number of products to the country they can easily get higher performance and productivity in a
world. There are good relationship between the China and Canada. Canada and China cooperate
extensively under a wide range of bilateral agreements and memorandums of understanding in
the fields of science and technology, energy, forestry, clean technology, agricultural
development, life sciences, maritime transport, and many more. The bilateral trade and
investment strengthen the relationship between China and Canada promulgates rapidly over the
17

last decade. Thus, by working abreast and collectively, government of both the countries can
achieve greater heights and success effectively and adequately.
RECOMMENDATIONS
In this part of research paper, recommendations will be provided which assist the
government of China and government of Canada to improve and strengthen their relationship
adequately. These recommendations will aid in increasing the trade practices between the nations
and assist in promulgating the sustainability between the countries. The recommendations are
listed below:
 In order to reduce the pollution level and carbon emission, it is being advised to the
Chinese government to import clean technologies from the Canadian government. There
are more than 800 small, medium and large firms in Canada that specialises in the green
technology. It will aid reducing the climatic damage and aid in providing environmental
security.
 Canadian government lacks electronic up gradation in the country. It is being
recommended to the government of the country to increase import of electronic gadgets
and machineries from China. China is known for its effective quality of gadgets and
technologies.
 In order to strengthen the relationship between both the countries more policies and
legislation regarding eradication of poverty, developing national economy, environmental
security must be formulated. This will aid in making the relationship more robust and
effective.
 It is being recommended to both the nations to concentrates on the health care facilities in
their country. Special agreement must be prepared and signed in order to increase the
effectiveness in the relationship shared by the countries.
 The bilateral trade practices between the countries must be increases so that both the
governments can be benefited. In order to do that, the government of both the nations
needs to identify their needs and act on the behalf of it.
CONCLUSION
Canada and People Republic of China share a long-standing and robust bilateral
relationship. The two countries have a share interest in strengthening the bilateral economic
relationship thorough promulgates two way trade in goods and services. In accordance with this
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context, the research paper examines the degree of relationship shared by both the nations
effectively. It can be understood that both the governments share immense and efficient relations
with each other. The multilateral trade practices increases the degree of relations shared by both
the countries. Sustainability is very important aspect and it is been discussed in the research
paper. From the above paper, it can be concluded that government of China and government of
Canada implementing various strategies in order to overcome the issues with climatic change
and increase the environmental protection activities. Investment increases in green and clean
technologies in order to protect the environment efficiently. Moreover, the research paper assist
in examining the economic and trade which shares between both the nations. The trade practices
help the nations to stabilise their economic conditions efficiently at the time of global financial
crisis. Both the government formulating multiple policies in order to increase the bilateral trade
practices within the countries. In this context, the recommendations has been provided in the
report in that will help the government of Canada and government of People Republic of China
to improve their relationship and increase their trade practices effectively and efficiently.
19

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