President Hu Jintao during a visit to Canada in September 2005. (Chuck Stoody/Canadian Press)
Canada, like the rest of the world, is determined to grab its share of China's economic miracle and see it increase. And that poses a challenge to politicians: how to balance strong trade against concerns about human rights issues.
The big money lies in China and Canadian exporters have capitalized on it. China is Canada's fourth-largest export market, with $7 billion US flowing into the country in 2004. Between 1998 and 2004, exports to China tripled, but Canada is still a small player, representing about 1.3 per cent of China's total imports.
Wheat exports no longer dominate as they used to just a decade ago. Now, our leading export to China is industrial and crude material — in products such as metals, wood pulp and fertilizer. China's growing appetite for raw materials has fuelled a boom in commodity prices.
We are also importing a lot more from China. In 2004, Chinese imports totalled $24.1 billion, making Canada China's second-largest trading partner. Where toys once dominated imports from China, electronic equipment and mechanical goods now lead. Then come consumer goods.
Canada is also trying to attract Chinese investment in Canada. Some recent Chinese interest in Canada, however, has attracted some concern from nationalists. In 2004, a state-run Chinese company entered into talks to possibly buy Noranda, Canada's oldest mining company. Noranda was purchased by Swiss-based Xstrata.
Canada has always been a trading nation. The prospect of selling our goods to 1.3 billion consumers is intoxicating. So, too, is the prospect of cheap imports. But China's economic revival poses obvious problems for both countries. How do you compete against a giant that pays its workers a fraction of what they earn in Canada? Many former workers in Canada's textile and furniture industries already know the answer.
The challenge for both countries is to figure out how to manage the economic and social dislocations.
1970
Canada and the People's Republic of China (PRC) establish diplomatic relations.
1971 Canada establishes a Canadian diplomatic mission in PRC, and PRC opens an embassy in Ottawa. Minister of Industry, Trade and Commerce Jean-Luc Pepin leads the first official Canadian delegation to PRC.
1972
Canada and PRC hold the first official sports exchange. China sends table tennis players, swimmers and divers to Canada. Canada sends ice skaters, a basketball team and badminton players to China.
1973
Pierre Trudeau is the first Canadian prime minister to pay an official visit to PRC. During the visit, Canada and China sign an agreement calling for the opening of consular missions in each country.
1979
Canada and PRC sign an economic co-operation protocol to establish a joint committee to review bilateral trade issues, and to promote trade in high technology goods and services.
1984
PRC Premier Zhao Ziyang visits Canada. He is the first Communist leader to address Parliament.
1990
Two-way trade exceeds $3 billion. Capital goods constitute 50 per cent of total Canadian exports to PRC.
1992
Two-way trade reaches $4.6 billion.
1994
Canada establishes its four-pillar policy on PRC: economic partnership; sustainable development; human rights, good governance and the rule of law; and peace and security.
Prime Minister Jean Chrétien visits Beijing and Shanghai with Team Canada: two ministers, nine provincial premiers, the territorial leaders and the head of the Federation of Canadian Municipalities. Chrétien and Premier Li Peng sign a nuclear co-operation agreement and a letter of intent on six development projects in PRC.
1995
PRC Premier Li Peng visits Canada to commemorate the 25th anniversary of bilateral relations and attends Canada-China Business Council annual general meeting in Montreal.
1996
Prime Minister Jean Chrétien, Minister of International Trade Art Eggleton and Secretary of State (Asia Pacific) Raymond Chan visit Shanghai to attend the annual general meeting of the Canada-China Business Council.
1998
Chrétien, Minister of International Trade Sergio Marchi and Secretary of State (Asia Pacific) Raymond Chan visit Beijing (attending the Canada-China Business Council annual general meeting) and Lanzhou (visiting Canadian-funded development projects). Several Canada-China agreements are announced during the prime minister's visit.
1999
PRC Premier Zhu Rongji visits Canada.
2001
Team Canada visits Beijing, Shanghai and Hong Kong. It is the largest trade mission in Canadian history. Chrétien is accompanied by close to 600 business participants, eight provincial premiers, three territorial leaders, Minister for International Trade Pierre Pettigrew and Secretary of State (Asia-Pacific) Rey Pagtakhan.
2003
Premier Wen Jiabao visits Canada.
2005
President Hu Jintao visits Canada on a state visit and meets with Prime Minister Paul Martin. The two leaders announce a "strategic partnership" and said they would double trade within five years. Martin said he had discussions about human rights with Hu.
2006
After Stephen Harper and his Conservatives win the election in January, the federal government cools its relations with China. Ottawa offends Beijing with a number of moves, including awarding honorary Canadian citizenship to the Dalai Lama, criticizing China's human rights record, accusing it of commercial espionage, long delaying a meeting between foreign ministers and making favourable noises toward Taiwan. The Chinese ambassador to Canada says the two nations can "handle their differences" and build "mutual respect." However, in November 2006, China backs out of meeting between Harper and the Chinese president in a move widely seen as a snub. Beijing later says the meeting will go ahead.
