Canada’s First-Half Exports to China Rise 30%, Led by Energy and Minerals
Stronger Canadian sales to China, driven primarily by energy, widened an alternative export channel while gains remained uneven across sectors.
Canadian exports to China rose 30 per cent year over year to $21.74 billion in the first half of 2026, according to Statistics Canada data analyzed in a new Canada China Business Council and University of Alberta China Institute report. Two-way consumer-goods trade increased 3.6 per cent to $66.6 billion, while imports from China fell 5.8 per cent, narrowing Canada’s bilateral trade deficit by 25 per cent. [1]
Energy and minerals accounted for 58.4 per cent of Canadian domestic exports to China during the period. Energy exports—principally crude oil and liquefied propane—grew 81.8 per cent, while metal ores and non-metallic minerals, including copper ore, increased 29 per cent. CBC reported that the Trans Mountain Pipeline reached 97 per cent capacity in June, increasing Asian buyers’ access to Western Canadian crude; higher oil prices and disrupted Middle East shipments also supported demand for Canadian supply. [1]
The figures provide evidence of export-market diversification during a period of worsening Canada-U.S. trade relations, but they do not show a broad-based improvement across Canadian industries. The report’s authors said the increase was concentrated in a limited set of commodities, and Canadian exports to China remained below exports to the United Kingdom and European Union. Researchers also cautioned that full-year data will be needed to assess whether the first-half trend persists. [1]
Agricultural results were comparatively modest. Agricultural exports rose 1.9 per cent, despite gains in canola seed, peas and beef, while lobster exports declined 28 per cent. The improvement followed an agreement under which China suspended some tariffs on products including canola meal and peas and reduced tariffs on canola seed; however, producers noted that the tariff relief and reductions currently run only until year-end. [1]
Regional exposure to the shift is concentrated in Western Canada: Alberta and British Columbia posted the largest export gains, supported by energy, minerals, forestry and agriculture. At the Port of Vancouver, roughly one-third of trade already moves to or from China, according to the port authority’s chief executive, who said that share is increasing. The data therefore point to a stronger China channel for resource exporters, while leaving businesses exposed to commodity-market conditions and the durability of renewed bilateral market access. [1]
This is a meaningful diversification signal because exports to China rose sharply and energy sales climbed 81.8 per cent, benefiting resource-producing regions and firms with Pacific export capacity. The significance is moderate rather than high because the gains were concentrated in energy and minerals, agricultural growth was limited, and the report cautioned against treating first-half results as uniform or durable across sectors. [1]