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February 11, 2026

Daily Briefing — 2026-02-11

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CHINA COMPASS
Briefing · 2026-02-11 · 25 signals
Canada-China bilateral trade (November 2025)
$11.3B
Imports
$7.3B
Exports
$4.0B
📋 Today's Briefing

Canada's strategic engagement with China takes center stage today, with a focus on trade and diplomatic maneuvers. The tension index rose moderately, influenced by Ottawa's proactive approach to China ahead of the USMCA review. This move underscores Canada's efforts to balance economic interests and geopolitical pressures.

In other developments, China's stance on US Treasuries and its partnership with Canada are in the spotlight, while a domestic initiative to replough degraded grasslands on the Qinghai-Tibet Plateau highlights environmental priorities. Additionally, the US House's PROTECT Taiwan Act adds a layer of complexity to regional dynamics.

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🔔 Top Signals
📦 trade
Why Canada engaged China ahead of the USMCA review: Jerome Gessaroli in the National Review
Why it matters
Canada's recent tariff-reduction agreement with China was seen as a strategic response to potential economic pressure from both within (the USMCA review) and outside its borders (China).
→ The deal is deliberately narrow, limiting Chinese electric vehicle imports to 49,000 units per year under standard tariffs and with explicit review provisions for manufacturers.
Macdonald-Laurier Institute
📦 trade
China’s warning on US Treasuries—and why its timing matters
Why it matters
Chinese regulators have advised domestic financial institutions to limit their purchases of US Treasuries, a move attributed to the potential internationalization of the Chinese currency as announced by President Xi Jinping in a recent speech.
→ China has been reducing its US Treasury holdings from being the largest holder to third-largest behind Japan and the UK, reflecting broader strategic shifts toward diversification of foreign reserves.
Atlantic Council
💻 technology
China-Canada partnership does not target any third party: spokesperson
Why it matters
The Chinese Foreign Ministry spokesperson stated that the China-Canada partnership does not target any third party in response to U.S.
→ The new strategic partnership aims to serve the common interests of both nations, promoting equality, openness, inclusiveness, peace, cooperation, and shared benefits for global peace, stability, development, and prosperity.
Xinhua
🛡️ military
Across China: Chinese researchers propose reploughing plan for degraded grasslands on Qinghai-Tibet Plateau
Why it matters
Chinese researchers have proposed a 5-year reploughing strategy for Elymus nutans grasslands on the Qinghai-Tibet Plateau to manage and sustainably develop degraded grasslands.
→ The study emphasizes the importance of understanding productivity and carbon sequestration under different planting models for effective management, focusing on Elymus nutans, a key forage grass species on the plateau.
Xinhua · 2026-02-11
🏛️ political
US House bill warns China off Taiwan
Why it matters
The US House passed the PROTECT Taiwan Act, which mandates that if China threatens Taiwan's security, economic, or social systems, the US would exclude Beijing from major international financial institutions such as the G20, BIS, and Financial Stability Board.
→ The bill was proposed by Frank Lucas and received 395 votes in favor with only two against.
Taipei Times · 2026-02-11
◆
📊 Market Snapshot
▲ Top Gainers
BYD Company HK$99.15 ▲ +3.50%
WuXi Biologics HK$41.40 ▲ +3.45%
XPeng Inc HK$70.35 ▲ +1.88%
▼ Top Losers
JD.com HK$109.80 ▼ -0.18%
Alibaba Group HK$160.10 ▼ -0.25%
Tencent Holdings HK$548.00 ▼ -0.54%
💱 Currency Rates
USD/CNY 6.91 ▼ -0.17%
CAD/CNY 5.11 ▲ +0.20%
USD/CAD 1.35 ▼ -0.45%
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China Compass
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