Following a Tit-For-Tat diplomatic expulsion by Ottawa and Beijing, Prime Minister Justin Trudeau said Canada will not be intimidated by China.
Over allegations related to foreign interference, Ottawa expelled Chinese diplomat Zhao Wei on Monday. And hours later, a Canadian diplomat in Shanghai was asked to leave. This is a response to what is called Ottawa’s “unreasonable actions”
Trudeau informed reporters in Ottawa that retaliation is to be expected, however, Canada will not be intimidated, and continue to engage in anything necessary to safeguard Canadians from foreign interference.
Since the detention of Meng Wanzhau an executive of Huawei Technologies in 2018 and Beijing’s subsequent arrest of two Canadians on suspicion of spying, the tension between the two countries has simmered.
Chinese imports of Canadian goods rose 16% to a record of C$100 billion ($ 74.8 billion) last year. After the United States, China is Canada’s biggest trade partner. However, the latest flare-up in Canada could face economic repercussions.
A ban imposed in 2018, on imports of Canola, Canada’s largest crop, from trading companies Richardson International and Viterra, was lifted last year. China is also a major importer of potash and wheat produced in Canada.
Sensitivity regarding food security by the Chinese government, is more stringent than they were years ago, and that might mitigate the risk, said Tyler McCann, managing director of the Canadian Agri-food policy institute. Implying, with China, there is always a risk.
China may have difficulty in limiting its imports of Canadian wheat and canola, as global supplies of wheat and vegetable oil are in limited supply, fueled by the Ukraine war.
Guy Saint- Jacques, former Canadian ambassador to China said that China took a very measured response, as China could have retaliated by expelling more senior officials or multiple officials.
China is not expected to resort to economic sanctions, as Beijing is attempting to reassure foreign companies that they can work there after draconian covid -19 restrictions were dropped, said Saint- Jacques.
He added Beijing is conducting a charm offensive to convince foreign enterprises to return to China to invest. Foreign companies will receive a bad massage if China imposes sanctions on Canada.
