Chinese Foreign Direct Investment in Canada totaled US$124.611 billion over the past six years, according to Statistics Canada data.
These flows have had ups and downs, registering the lowest point in 2016, at US$10.851 billion, and the highest in 2021, at US$18.336 billion.
In 2023, China ranked fifth as an investor country in Canada, according to the definitive investor country ranking. It was also the 20th most important destination for Canadian direct investment abroad. In the Asia and Oceania region, it ranked as the fourth most relevant destination.
Chinese Foreign Direct Investment in Canada
Chinese investment in Canada continues to focus on natural resources. This includes minerals and energy fuels. Most of these investments are made through mergers and acquisitions.
According to the Canadian government, several measures have been taken to strengthen the foreign investment review process. In addition, it seeks to ensure that these investments are aligned with Canadian values and interests.
Here is the trend of Chinese FDI in Canada, in millions of U.S. dollars:
- 2016: 10,851.
- 2017: 11,355.
- 2018: 15,320.
- 2019: 17,997.
- 2020: 14,856.
- 2021: 18,336.
- 2022: 18,165.
- 2023: 17,731.
International relations
In the face of global economic uncertainty and elections in different countries, China is strengthening its foreign relations. This effort includes ties with Western nations such as Australia, France, Germany, the United Kingdom, the Netherlands and the United States. Although Canada is also part of this approach, it is not high on the list.
The relationship between Canada and China remains complex. There are several points of tension, such as foreign interference, death penalty cases, visas, Hong Kong, Xinjiang and Taiwan. However, interaction with China remains relevant for Canada. This is due to its global influence in different areas.
In terms of FDI, Canada’s mining sector receives the lion’s share of funds from allied countries. Prominent among these are Australia and the United States.