China no Panacea for Canada’s U.S.-Dependent Economy

China no Panacea for Canada’s U.S.-Dependent Economy

TORONTO -- Wrapping up a trip to China last week, Canadian Prime Minister Stephen Harper described the visit as “very successful.” The trip saw the signing of a number of trade deals worth an estimated $3 billion in oil, natural gas, minerals and other products. But though it also ended with the commissioning of a feasibility study into the possibility of a free trade agreement between the two countries, Harper was quick to advise caution on what remains a long-term goal.

That the two economies need each other is not in question. With bilateral trade valued at $50 billion in 2011, China is Canada’s second-biggest trade partner, after the U.S., and the country’s third-largest export market, after the U.S. and Mexico.

China, which recorded economic growth of 9.2 percent last year, is the world’s largest consumer of resources and has been buying into overseas oilfields to secure fuel for its expanding economy. Recent reports show that China has invested about $16 billion in Canada's energy sector in the past two years, including a deal in which PetroChina, the country’s largest oil company, bought a 60 percent stake in a project run by Athabasca Oil Sands Corp. for $1.9 billion.

Keep reading for free!

Get instant access to the rest of this article as well as three free articles per month. You'll also receive our free email newsletter to stay up to date on all our coverage:

Or, Subscribe now to get full access.

Already a subscriber? Log in here .

What you’ll get with an All-Access subscription to World Politics Review:

A WPR subscription is like no other resource — it’s like having your own personal researcher and analyst for news and events around the globe. Subscribe now, and you’ll get:

  • Immediate and instant access to the full searchable library of 15,000+ articles
  • Daily articles with original analysis, written by leading topic experts, delivered to you every weekday
  • Weekly in-depth reports on important issues and countries
  • Daily links to must-read news, analysis, and opinion from top sources around the globe, curated by our keen-eyed team of editors
  • Your choice of weekly region-specific newsletters, delivered to your inbox.
  • Smartphone- and tablet-friendly website.
  • Completely ad-free reading.

And all of this is available to you when you subscribe today.

More World Politics Review