The latest China Compass briefing highlights a range of signals indicating a moderate level of tension between Canada and China. With a Tension Index of 4.0/10, the focus is on political, technological, and military developments. The upcoming Chinese New Year celebrations in Vancouver, Canada, have brought attention to the cultural and economic ties between the two nations. Meanwhile, Taiwan-related issues remain a key concern, with talks between the Taiwan Democratic Self-Government League and Taiwan-funded enterprises in Beijing, as well as the development of autonomous drone swarms by the PLA.
On the economic front, bilateral trade between Canada and China reached $11.3 billion in November 2025, with a trade balance favoring China. The market indices for Shanghai, Shenzhen, and Hong Kong all showed positive growth, indicating a healthy economic outlook. However, the trade deficit for Canada highlights the need for further efforts to balance the trade relationship.