How Canada Works

Canada is a federal parliamentary democracy using the Westminster system. Executive, legislative, and judicial powers are separated with checks and balances. The Prime Minister must maintain the confidence of Parliament to govern.

Understanding this system is crucial for grasping Canada's China policy. Unlike China's centralized decision-making, Canada's stance on China is influenced by multiple actors: the Prime Minister and Cabinet, opposition parties, provincial governments, independent media, think tanks, and public opinion.

This distributed power structure means Canada's China policy can produce seemingly contradictory signals—the federal government may take a tough stance while certain provinces continue pushing for economic engagement.

Canada uses the Westminster parliamentary system. The Prime Minister is not directly elected but is the leader of the party or coalition commanding a majority in the House of Commons. The government must maintain parliamentary confidence to remain in power.

Major Political Parties

Canadian foreign policy is led by the Prime Minister's Office and executed through Global Affairs Canada. But policy-making is constrained by parliamentary committees, intelligence agencies, allied relationships, and public opinion.

Five Eyes Influence

Canada is a member of the Five Eyes intelligence alliance (US, UK, Australia, New Zealand, Canada). This intelligence-sharing mechanism significantly influences Canada's China policy—allied assessments and policy choices on China directly affect Canadian positions.

The Huawei 5G ban, the Meng Wanzhou case, and recent foreign interference investigations all reflect Five Eyes coordination's impact on Canadian decision-making.

Canadian government and society's main concerns about China focus on four areas: foreign interference, economic security, human rights, and geopolitical risks. Understanding these concerns helps anticipate policy directions.

Foreign Interference

Since 2023, Canada has conducted extensive foreign interference investigations. Concerns include: election interference, influence operations in Chinese-Canadian communities, security risks from university research partnerships, and transnational reach of police stations. This has become the core issue in Canada-China policy.

Economic Security

Concerns include: critical mineral supply chain dependence on China, intellectual property protection in tech sectors, foreign investment security reviews (especially in tech and resources), and implementation of "de-risking" strategies.

Human Rights

Xinjiang, Tibet, and Hong Kong are focal points for Canadian politicians. The House of Commons passed a Xinjiang resolution and imposed sanctions on officials. These issues also have significant public attention in Canada.

Geopolitics

The Taiwan Strait situation is a core concern in Canada's Indo-Pacific Strategy. Canada expresses its position through naval freedom of navigation operations and diplomatic statements. Chinese activity in the Arctic is also receiving increasing attention.

Canadian society has an ongoing debate about how to handle relations with China. The main divide is between engagers and hawks, but opinion has clearly shifted toward hawkishness in recent years.

Main Positions

Shifting Public Opinion

The 2018 "Two Michaels" detention was a turning point in Canadian public opinion on China. Since then, foreign interference investigations, Xinjiang human rights issues, and the Hong Kong National Security Law have further reinforced negative public views. Canadian public favourability toward China is currently at historic lows.

This opinion environment means any policy seen as "soft on China" faces political pressure, making governments more inclined to take tough positions on China issues.

Understanding these institutions' functions and recent activities helps grasp how Canada's China policy is formed and executed.

China is Canada's second-largest trading partner, but the trade structure is asymmetric. Canadian exports are primarily resources, while imports cover all manufacturing categories. The "de-risking" discussion is reshaping this relationship.

Main Exports

• Canola — Canada's largest export to China, but has faced repeated market access issues
• Minerals — Iron ore, potash, copper, etc.
• Wood Products — Pulp, lumber products
• Agricultural Products — Pork, seafood, legumes

De-risking and Critical Minerals

The Canadian government is pushing to reduce China dependence in critical supply chains, especially in critical minerals. Canada has abundant lithium, cobalt, nickel, and other minerals needed for EV batteries—the government hopes to attract Western investment to build domestic supply chains.

In 2022, Canada ordered three Chinese companies to divest from Canadian critical mineral firms, demonstrating a tough stance in this area.

Canadian media plays an important role in shaping public opinion on China. Mainstream media coverage of China is generally negative, but different outlets have varying positions.

Think Tanks and Research Institutions

The following institutions regularly publish China-related research that influences policy debates:

• Asia Pacific Foundation — Relatively neutral, focuses on economic relations
• Macdonald-Laurier Institute — Conservative think tank, hawkish on China
• Canadian International Council — Academic orientation, diverse perspectives