Over $100 billion in Chinese imports to Canada in 2022, a record
The largest Chinese product import category in 2022 was consumer goods ($31 billion), followed by electronic and electrical equipment ($28 billion) .
Trade between China and Canada reached record levels in 2022, with the value of imports from China crossing the $100 billion mark for the first time. dollars, according to Statistics Canada data.
Economists and other observers say companies are looking past political tensions between the two countries as demand surges and supply chains return to normal functioning in a post-pandemic world.
James Brander, a professor of economics at the Sauder School of Business at the University of British Columbia, pointed out that in the absence of government policies to the contrary – especially those that restrict currently trade with Russia – business will not prioritize politics.
Of course, yes, there are tensions. But economic or trade flows as well as economic activity in general are not much affected by political tensions, unless there is an explicit policy, Brander explained. /p>
Statistics Canada data shows Canada imported a record $100,027,968,000 in goods from China last year, up 16% from $86 billion in 2021.
The largest category of imports in 2022 was consumer goods at $31 billion, followed by electronic and electrical equipment at $28 billion. billion.
The data also indicates that Canadian exports to China also hit an all-time high of $27.9 billion, recovering from a slump that followed the 2018 arrest of the Chinese leader of China. Huawei, Meng Wanzhou, and China's detention of Canadians Michael Spavor and Michael Kovrig.
Last year, China lifted a three-year ban on Canadian canola that was imposed following the arrest of Ms. Meng, who has since returned to China. However, tensions between Ottawa and Beijing remain high over allegations of Chinese interference in Canadian elections and government confirmation of Chinese surveillance operations.
Anastasia Ufimtseva, program manager at the Asia-Pacific Foundation of Canada, noted that although economics and politics are very much intertwined, it could take a long time before they really come together. #x27;align.
In the meantime, businesses will respect the dynamics of global trade and seek cost-effective solutions, she said. Potentially, in the future, we could see changes in the trade. They could affect each other, but we should always be careful about all the factors companies take into account when making their decisions.
Ms. Ufimtseva added that it is not easy for companies to find alternatives to China, the world's second largest economy.
Even though many countries say after the pandemic they want to establish an alternative supply chain structure, it is expensive and difficult to change when a company has been established and has its suppliers. Finding other ways to build this infrastructure will take a long time, Ufimtseva said.
She added that existing supply chains have stabilized after the disruptions of the pandemic.
For his part, economist Daniel Trefler, of the University of Toronto, indicated that supply chains factories cannot be moved easily. Of course, that's extremely difficult to do, Trefler said. And it's impossible to do in a short period of two, three or four years.