Economic Analysis: Canada-China Trade and Sustainability

This research report examines the economic and trade relationship between Canada and China, focusing on sustainability, environmental security, and economic policies. It begins with an introduction to the diplomatic and economic ties between the two countries, highlighting the growth of trade since 1970. The report argues for improvements in the relationship through targeted sustainable policies in economics and trade. The arguments presented cover sustainability, environmental security, and economic and trade aspects. The analysis includes both primary and secondary data, presented in tables that detail import and export figures. The discussion section analyzes the collected data and information to enhance the thesis's effectiveness. The report also offers recommendations for improving sustainability and trade between Canada and China and concludes by summarizing the key findings and suggesting avenues for future research. The report provides a detailed analysis of the economic relationship between the two countries with the aim of identifying areas for improvement and future growth.

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
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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
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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
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