Diplomacy

Op-ed in Canada’s top newspaper calls for breaking with US to align with China

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An article was published in Canada’s bestselling newspaper, the Globe & Mail, calling for the country to distance itself from the US and build deeper ties with China.

The article, titled “Let’s get rid of the US and build closer relations with China,” was authored by Julian Karaguesian and Robin Shaban. Karaguesian is an economist who once served as a special advisor to the Canadian Ministry of Finance. Shaban is a member of one of Canada’s most important think tanks, the Public Policy Forum.

The authors argue that Canada’s “agreement” with the US to repeal the digital services tax—which benefits US tech giants like Meta and Netflix at the expense of the country’s fiscal sovereignty—and the Trump administration’s threat to impose a 35% tariff on Canadian goods “perfectly” summarize Canada’s current predicament. “Washington no longer sees Canada as an ally, but as a dependent from which it can extract concessions. This situation is a clear reminder that trade diversification is no longer optional, but an urgent national necessity,” they write.

The Globe & Mail authors see Canada’s long-standing subservience to the US as a problem that also prevents it from partnering with China, one of the world’s most important economies. They stress that to achieve economic sovereignty, Canada must shed the Washington narrative that “China is an unreliable trading partner bent on world domination.”

Instead, the authors call for Ottawa to build its own relationship with Beijing based on Canada’s interests, not those of the US.

Pointing out that China produces not only low-cost manufacturing but also advanced production and world-leading technology, the authors highlight that the Asian giant leads in 37 out of 44 critical technologies, from artificial intelligence to green energy.

Karaguesian and Shaban write:

“If Ottawa is serious about building a strong and independent economy, we must establish a more reliable political relationship with China that supports access to its growing markets and technology hubs. As Canada grapples with a productivity crisis, Canadian businesses must adopt and implement leading technologies from around the world, including China. Yet our federal government remains in a state of strategic paralysis, clinging to an Atlanticist-G7 worldview while our largest trading partner and ‘closest ally’ scorns us.”

The authors argue that Ottawa’s submission to US pressure on Chinese technology has worsened an already struggling economy. They point out that from the Huawei 5G ban to the extradition case of Huawei CFO Meng Wanzhou, Ottawa’s compliance with US demands has alienated Canada from China, leading to retaliatory measures in diplomacy and trade.

Canada’s imposition of a 100% tariff on Chinese electric vehicles on October 1, 2024, triggered retaliatory measures on Canadian canola and pork, costing farmers (mostly in the West) approximately $1 billion annually.

The Canadian authors describe it as “ironic” that while Canada adheres to an agenda of decoupling from China, the US is “quietly” re-establishing its trade relations with Beijing. “Canada and other ‘allies’ are enforcing rules that the rule-maker ignores,” they say.

“Moreover, our government officials are alienating China (and India) with sermons about values and a lack of like-mindedness, which limits the political ability and willingness of both sides to expand economic relations. Yes, Canada’s pluralistic system is vastly different from China’s one-party system. But Canada also trades with other countries whose political systems are significantly different.”

The authors note that Canada’s artificial intelligence minister is seeking investment in Saudi Arabia to expand AI infrastructure and that Japan has been governed by the Liberal Democratic Party since 1955, yet relations with these countries are not questioned.

“To achieve economic independence, Canada needs to change course,” states the Globe & Mail article, arguing that Canada must improve technology transfer from China to boost its economic strength, accelerate innovation, and protect its sovereignty.

The authors conclude their noteworthy article as follows:

“The biggest threat to Canada’s sovereignty is not Chinese interference, but our obedience to the US, which increasingly treats us like a vassal state. With 95% of global consumers living outside of America, our dependence on an increasingly unreliable partner for 75% of our exports is not a strategy, but a strategic mistake. Prime Minister Mark Carney now faces a decisive choice: to reinforce the Atlanticist worldview or to embrace what Columbia University professor Jeffrey Sachs calls the ‘reality of the new multipolar world.’ The relentless attacks on Canada’s prosperity and sovereignty over the last six months make it clear what that choice should be.”

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