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Relations with China are at ‘yellow light’, says Canadian ambassador

OTTAWA — Canada’s ambassador to China says Ottawa’s “complex” relationship with Beijing means some facets of the relationship are accelerating while others are in reverse.

“The analogy I constantly use when advising Canadian companies looking to do business in China is that of the yellow light,” explained Jennifer May, in a speech in French this week.

May told the Montreal Council on Foreign Relations that Canada no longer has the green light for “business as usual” with China, but it has also moved past what she called the red light scenario of 2018, when China arrested Canadian citizens Michael Kovrig and Michael Spavor.

Beijing jailed the two men for 1,019 days after Huawei executive Meng Wanzhou was arrested and detained in Vancouver at the request of the United States. Since then, Canadians have continued to say in polls that they fear arbitrary arrest in China.

In late 2022, Ottawa released its Indo-Pacific strategy, which asserted that China “is an increasingly disruptive global power.”

In her speech on Monday, Ms. May argued that this does not mean Canada cannot work with Beijing.

“Canada does not view China as an adversary,” she explained. “Rather, it is a country that presents both challenges and opportunities, which requires careful management and strategic thinking.”

The ambassador said Canadian energy companies are making inroads in China, while others in sectors like agriculture are being stymied by what she called arbitrary measures from Beijing. She noted that restrictions have been in place for more than two years on imports of certain types of Canadian beef and pet food containing chicken.

This month, China filed a complaint with the World Trade Organization and launched its own anti-dumping investigation into Canadian canola imports. That was in response to Canada’s decision in August to raise tariffs on Chinese-made electric vehicles. Ottawa is now considering further tariffs on energy products such as batteries.

May noted that the row “highlights the risks faced by Canadian companies operating in China” and the need to diversify exports to other countries. Ottawa says its own restrictions are designed to protect Canada from subsidies that harm domestic production and are in line with those of peer countries.

A pragmatic approach

The ambassador noted that China “fiercely protects” its interests with trade restrictions enacted for national security reasons. “The difference is that we are transparent,” she insisted. “We make sure that Canadian and Chinese stakeholders know where the line is.”

She said Chinese officials are angered by the ongoing investigation into foreign interference, which she said is aimed at addressing concerns that are extremely important to Canadians.

“In my discussions with Chinese officials, as well as in my public interventions, I have made clear that these hearings will continue to be a source of discomfort for the Chinese government,” she said.

The hearings and the decision to block certain Chinese institutions from collaborating with Canadian academics “were not aimed at confrontation, but sought to defend the principles that underpin our democratic society,” the ambassador continued.

Canada cannot deny that there are real disagreements over values ​​and economic policies, she continued, “but we should not always put that at the forefront.” Similarly, recent tariffs are a source of tension, but “we should not say that this is going to hurt the whole relationship,” she added.

His remarks sound like a repeated call by senior Chinese officials since January for Canada “not to let differences dominate bilateral relations” but instead focus on “win-win cooperation.”

Ms. May argued that Canada had more to gain by engaging “pragmatically” with China than by cutting ties.

“Our approach is to find common ground where possible, while remaining firm on the issues that matter to Canadians,” she said.

She said her time in China allowed her to visit the Xinjiang region, where the United Nations found in 2022 that China had committed serious human rights violations against Uighurs and other Muslim minorities that “may amount to international crimes, in particular crimes against humanity.” Beijing vehemently denies the allegations, but May said she was able to raise her human rights concerns directly with Chinese officials.

She also said she could also denounce China’s support for Russia’s military-industrial complex, which fueled its invasion of Ukraine.

China is therefore “a complicated dance partner” for Canada, with the two countries moving forward, backward and going in circles “which leads us to step on each other’s toes from time to time.”

“Developing healthy and stable bilateral relations”

She highlighted collaboration with China on issues such as the environment, with the two countries co-hosting a biodiversity summit in Montreal in 2022.

Mrs May also revealed that a meeting between Foreign Secretary Mélanie Joly and her counterpart Wang Yi in Beijing last July lasted five hours.

“Minister Joly’s recent visit demonstrated that we are committed to working with China to develop healthy and stable bilateral relations that pragmatically advance our interests, contribute to security and stability, and enhance our deep and historic people-to-people ties,” she said.

“Minister Wang Yi has repeatedly been open on many issues we discussed.”

She said these included sensitive issues such as Canadian consular matters, the flow of toxic drug components and human rights.

The Chinese authorities have taken the time to examine what is the current state of our relations, what are the interests of both sides and where and how we can move forward, she said.

May noted that China is changing rapidly. She described Beijing as going from a smoky capital to one with clean air and green trees, and a rapid shift from cash to mobile payments. At the same time, controls on freedom of speech and national security laws have expanded dramatically, she said.

This pace of change can be seen in China’s recent economic slowdown, which she says is more concerning to her embassy than the state of bilateral relations.

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