Following Ottawa and Beijing’s tit-for-tat diplomatic expulsions, Canadian Prime Minister Justin Trudeau said on Tuesday that his nation would not be intimidated by China.
In response to Ottawa’s “unreasonable actions” on Monday, when Ottawa expelled Chinese ambassador Zhao Wei on fears of foreign influence, China ordered the removal of a Canadian diplomat stationed in Shanghai by May 13.
“We understand there is retaliation,” Trudeau told reporters in Ottawa, “but we will not be intimidated, and we will continue to do everything necessary to keep Canadians protected from foreign interference.”
Tensions between the two nations have been increasing since the arrest of Huawei Technologies executive Meng Wanzhou in 2018 and the subsequent arrest of two Canadians on espionage charges by Beijing. All three were ultimately published in 2021.
The new escalation has raised fears that the Canadian economy would suffer as a consequence. After the United States, China is Canada’s second-largest trade partner, with Chinese imports of Canadian goods increasing 16% last year to a record C$100 billion ($74.8 billion).
Canola is Canada’s most significant crop, and Beijing prohibited imports from Richardson International and Viterra for three years in 2018. Potash and wheat from Canada are two of China’s most popular agricultural imports.
“With China, there’s always a risk” of retaliation”
According to Tyler McCann, director of the Canadian Agri-Food Policy Institute, “With China, there’s always a risk” of retaliation. (However, it seems that the Chinese government is more concerned about food security than it was years before, which may lessen the danger.”
If global supplies of wheat and vegetable oil tighten as a consequence of the Ukraine crisis, China may find it difficult to limit its purchases of Canadian wheat and canola.
China, for its part, “took a very measured response,” according to former Canadian ambassador Guy Saint-Jacques in an interview carried on the Canadian Broadcasting Corporation. He suggested that China reacted by eliminating dozens or more senior officials.
Saint-Jacques believes China will not apply economic penalties because the Chinese government is attempting to persuade foreign enterprises that it is safe to operate in the country now that the harsh COVID-19 restrictions have been abolished.
This year, Beijing has welcomed Western leaders with open arms, including French President Emmanuel Macron, and China’s Premier Li Qiang has worked to reassure business leaders that China is ready to embrace international investment.
Saint-Jacques claims that Beijing is waging a “charm offensive” to attract multinational corporations to reinvest in China. Sanctions against Canada at this time would have sent the incorrect message to foreign businesses.
