OTTAWA — Relations between Canada and China continue to thaw as the federal government seeks new trading partners.
That improving relationship could strengthen Alberta’s ambitions to increase oil exports through a proposed new pipeline to the West Coast.
China, the world’s largest crude oil importer, represents a significant potential market for increased Canadian energy exports.
The Chinese Consulate in Calgary says it is following developments surrounding the proposed pipeline and views the project as an important step toward expanding Canada’s access to Asian energy markets.
“We have noted recent developments regarding the proposed west coast oil pipeline project. It is a significant step in strengthening Canada’s energy export capacity, diversifying its exports, and expanding its presence in Asian energy markets,” the consulate said in a statement.
“China and Canada enjoy strong complementarities in the energy sector, and practical cooperation in this field has brought tangible benefits to both countries.”
The consulate said China is prepared to pursue greater energy co-operation with Canada.
“China stands ready to work with Canada to further deepen mutually beneficial cooperation in the energy sector.”
Canadian oil shipments to Asia have already grown following the successful completion of the Trans Mountain pipeline expansion. The proposed new pipeline would substantially increase Canada’s ability to move Alberta crude to Pacific markets.
The diplomatic relationship between Ottawa and Beijing has also shown signs of improvement following years of tension.
In June, the Chinese Embassy in Canada hosted a symposium focused on building what Beijing describes as a new strategic partnership between the two countries.
More than 50 experts, scholars and representatives from government and other sectors attended, including Kody Blois, parliamentary secretary to Prime Minister Mark Carney, Sen. Clément Gignac and Liberal MP Zoe Royer.
Chinese Ambassador Wang Di encouraged greater economic co-operation, increased exchanges and continued efforts to improve bilateral relations.
Canadian representatives also expressed support for strengthening relations and expanding co-operation between Canada and China.
Earlier this year, Canada and China reached an agreement involving agricultural exports and Chinese-made electric vehicles.
Beijing reduced tariffs affecting Canadian agricultural products while Canada agreed to allow up to 49,000 Chinese-made electric vehicles into the Canadian market.
However, Canada’s improving relationship with China is attracting attention in Washington.
The United States has raised concerns about Chinese investment in Canada and the possibility of Chinese products entering the American market through Canada under the Canada-United States-Mexico Agreement.
U.S. Trade Representative Jamieson Greer has pointed to Canada’s deepening economic relationship with China as an issue preventing Washington from supporting a 16-year renewal of CUSMA in its current form.
The Trump administration declined last week to extend the agreement for another 16-year term, beginning a process of annual reviews.
The decision does not terminate CUSMA, and tariff-free access remains in place for most Canadian exports.
Washington wants stronger rules preventing Chinese investment and products from using Canada or Mexico as a pathway into the American market.
For Alberta’s energy sector, the Chinese Consulate’s comments provide a direct indication of interest from Beijing in expanding energy co-operation as Canada pursues additional pipeline capacity to the Pacific Coast.
At the same time, closer economic ties with Beijing are becoming another issue in Canada’s negotiations with Washington over the future of North American free trade.
Comments