China is threatening to use its considerable economic strength to penalize Canada following the Harper government's decision to bestow honorary citizenship on Tibet's exiled spiritual leader.

Canada's gesture toward the Dalai Lama does not bode well for Canadian-Chinese relations, a Chinese diplomat told reporters Wednesday.

The Dalai Lama, shown receiving an RCMP pin on a visit to Ottawa in April 2004, is expected to visit Canada again in early September.
(Canadian Press)

Zang Weidong, minister-counsellor at the Chinese embassy, said China has relayed its disapproval to the Canadian government and its hope that Canada would continue to recognize Tibet as a part of China.

"We said that Dalai Lama is a separatist, so I don't think he should be honoured with [Canadian citizenship], and that will harm the Canadian image and also harm the relationship between China and Canada," Zang said at a news conference.

On June 22, Parliament unanimously adopted a motion giving honorary citizenship to the Dalai Lama. The honour has been awarded only twice before — to South African leader Nelson Mandela and Swedish diplomat Raoul Wallenberg, who saved countless Jews from extermination during the Second World War.

Nobel prize winner

The Dalai Lama won a Nobel peace prize in 1989 for his lifelong struggle for Tibetan autonomy and his pursuit of peace. He has lived in exile since 1958, when China annexed Tibet.

Amnesty International says freedom of religion, expression and association continued to be severely restricted in Tibet last year. Arbitrary arrests and unfair trials are rampant there.

"Over 100 Tibetan prisoners of conscience, mainly Buddhist monks and nuns, remained in prison," Amnesty said in its annual report.

China is Canada's second-largest trading partner, with annual trade worth $30 billion in 2004, according to the Department of Foreign Affairs.

Zang hinted that Parliament's decision could bring economic repercussions.

"We have 1.3 billion population and we are developing and the future for China is bright and China has a big market and we hope we can co-operate with all the countries in the world," Zang said.

"But if some problems or troubles always appear or emerge in the bilateral relationship, certainly the other relationships certainly will be hurt, so we have to manage all the differences and difficulties with caution."

China not issuing 'threat': official

Asked if China was levelling a threat, Zang smiled and said, "I don't think it's a threat. I'm just trying to make things clearer. It is a clear fact and very easy to be seen."

Foreign Affairs says Canada recognizes the People's Republic of China as the legitimate government of China and Tibet.

"Canada does not recognize the Tibet government in exile, but Canada considers the Dalai Lama to be an important and widely supported spiritual leader," said spokeswoman Kim Girtel.

Prime Minister Stephen Harper has been less than enthusiastic about building ties with China since his Conservative government came to power, and complained about Chinese espionage early in his tenure.

New Democratic Party MP Peggy Nash, a member of the Canada-Tibet Parliamentary Committee that pushed for the honorary status, said the Dalai Lama is expected to visit Canada in early September.