Canada Charges Ahead on China Trade While Washington Drags Its Feet

North America's trade dynamics are splitting at the seams. As U.S.-China relations remain frosty, Canada is seizing the opportunity to deepen economic ties with Beijing.

The Great White North's Gambit

Ottawa isn't just dipping toes—it's diving headfirst into Asian markets. Trade delegations are flying east while American counterparts remain grounded by political paralysis. The timing couldn't be more strategic.

Bypassing Traditional Channels

Canadian exporters are cutting through red tape with blockchain-based trade platforms. They're settling transactions in digital yuan while Wall Street still debates CBDC risks. The efficiency gains are staggering—48-hour settlements versus 30-day traditional cycles.

Washington's Hesitation Creates Vacuum

While U.S. regulators drown in paperwork, Canadian fintech firms are securing first-mover advantage. They're building infrastructure that could dominate North American-Asian trade for decades. The old guard's loss is becoming crypto's gain.

Some legacy banks are still trying to short Bitcoin while missing the real trade revolution. Typical finance brains—watching the ticker while the foundation shifts beneath them.

Carney and Li address tariffs, agriculture, and exports

Carney told reporters Tuesday that the steel tariffs were one of the more direct topics on the table. “There is some alignment of tariffs with the United States,” he said. “Particularly in the steel sector, where we’ve been very clear in the approach that we have taken, and we had an open discussion with the Premier and our China colleagues about that and the reasons for that.”

They also covered canola, seafood, and electric vehicles. Carney’s office confirmed the details of the discussion, stating that agriculture and agri-foods were top priorities. The impact was immediate, within hours of the meeting, China’s rapeseed meal futures on the Zhengzhou exchange dropped 3.1% by 03:46 GMT Wednesday.

Zhang Deqiang, an analyst at Shandong-based Sublime China Information, said the market was reacting to signs that canola trade might resume. “Rapeseed meal prices fell today following the China-Canada talks, with the market expecting positive signals to help restore China-Canada canola trade and thereby boost future supply,” Zhang said.

Li didn’t hold back on expectations from Ottawa either. He told Carney he wants Canada to build a “correct” understanding of China, respect its “core interests,” and focus on laying a solid political base for economic cooperation. He also noted that China’s trade with Canada has grown fast this year and expressed interest in maintaining that momentum.

Beijing ramps up trade while Boeing talks drag on

As Canada resets with China, Washington is still stuck negotiating a major Boeing deal that’s been hanging in the air for years. U.S. Ambassador to China David Perdue said Tuesday that both sides are close to sealing a deal that could involve up to 500 aircraft. “This is a huge order, and it’s very important to the president. Very important for Boeing. I think it’s very important to China,” Perdue said.

Xi’s export engine hasn’t slowed down despite Trump’s five-month tariff spree. China is pushing toward a record $1.2 trillion trade surplus. Even with U.S. access getting tighter, China’s manufacturers are still shipping hard. Exports to the rest of the world — not counting the U.S. — have jumped almost 10% this year. That’s the fastest growth since 2022, when pandemic demand pushed China’s exports to insane levels.

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