# How Chinese Economy Impacts Canada?



## [email protected] (Jun 20, 2016)

Canada and the U.S. may share the world’s longest border, but Canada’s economy relies more heavily on China than the U.S.

A strong Chinese economy and rising imports and exports translates into higher investment in Canada and increased demand for goods and services. This also means increased employment, additional taxes in the government’s coffers, and increased government spending.

A weakening Chinese economy has the reverse effect. And has a significantly negative impact on commodities and oil prices. That’s because China has an insatiable appetite for Canadian natural resources. This, combined with a stronger Canadian dollar, makes it more difficult to compete.

In 1997, China accounted for just 0.7% of Canada’s exports and 1.9% of imports. Today, China’s bilateral trade with Canada is roughly 10 times what it was in 1997.3 Where it was once said, “as the U.S. goes, so goes Canada,” today, it’s “as the U.S. and China go, so goes Canada.”

If the Chinese economy continues to cool, the effects will be felt coast to coast in Canada and will drag the stock market down with it.


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## Oldroe (Sep 18, 2009)

Our scrap metal prices went up 425 % in 6 months so the Chinese economy is picking up maybe on fire.

The Chinese stock market is so crocked I cant find a good investment.


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## humble_pie (Jun 7, 2009)

[email protected] said:


> In 1997, China accounted for just 0.7% of Canada’s exports and 1.9% of imports. Today, China’s bilateral trade with Canada is roughly 10 times what it was in 1997.3 Where it was once said, “as the U.S. goes, so goes Canada,” today, it’s “as the U.S. and China go, so goes Canada.”
> 
> If the Chinese economy continues to cool, the effects will be felt coast to coast in Canada and will drag the stock market down with it.




not yet, imho. Maybe some day, but china is nowhere yet near serving as canada's principal trade partner.

you are mentioning 1997 canadian exports to china as 0.7% of all exports, vs today's figures which you say have risen tenfold? but this brings us merely to todays 7% of all canadian exports bound for china, does it not?

import ratios comparing 1997 to present day, nearly 20 years later, tell a similar story.

the giant elephant in canada's trade parlour is still the US of A.


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## new dog (Jun 21, 2016)

We have to compete with Russia, Australia, Africa and so on for selling natural resources over there. However China would still want to make deals as that would leave less resources for the US to access.


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