Canada and the U.S. may share the world’s longest border, but Canada’s economy relies more heavily on China than the U.S.
A strong Chinese economy and rising imports and exports translates into higher investment in Canada and increased demand for goods and services. This also means increased employment, additional taxes in the government’s coffers, and increased government spending.
A weakening Chinese economy has the reverse effect. And has a significantly negative impact on commodities and oil prices. That’s because China has an insatiable appetite for Canadian natural resources. This, combined with a stronger Canadian dollar, makes it more difficult to compete.
In 1997, China accounted for just 0.7% of Canada’s exports and 1.9% of imports. Today, China’s bilateral trade with Canada is roughly 10 times what it was in 1997.3 Where it was once said, “as the U.S. goes, so goes Canada,” today, it’s “as the U.S. and China go, so goes Canada.”
A strong Chinese economy and rising imports and exports translates into higher investment in Canada and increased demand for goods and services. This also means increased employment, additional taxes in the government’s coffers, and increased government spending.
A weakening Chinese economy has the reverse effect. And has a significantly negative impact on commodities and oil prices. That’s because China has an insatiable appetite for Canadian natural resources. This, combined with a stronger Canadian dollar, makes it more difficult to compete.
In 1997, China accounted for just 0.7% of Canada’s exports and 1.9% of imports. Today, China’s bilateral trade with Canada is roughly 10 times what it was in 1997.3 Where it was once said, “as the U.S. goes, so goes Canada,” today, it’s “as the U.S. and China go, so goes Canada.”
