Poll says Canada firms positive about China

Canadian companies should be ready for opportunities in China after it became the first country to emerge from the coronavirus pandemic, according to a business survey.

Conducted by the Canada China Business Council, or CCBC, and the Rotman Institute for International Business, the poll shows 84 percent of Canadian companies doing business with China reported a hit from COVID-19, but China’s quick recovery is bringing some optimism.

However, tensions caused by the arrest of Huawei chief financial officer Meng Wanzhou at US request, have been a “significant impediment” to Canada-China business, the survey found.

Some 51 percent of Canadian businesses responding to the survey said contract deals with China have been postponed and 40 percent of them have seen cancellations due to the outbreak.

The energy sector was among sectors cited as having “long-term positive implications”. But these “were not being addressed, people want something less short term and less reactive”, said Sarah Kutulakos, executive director of the CCBC.

“And we had many comments saying that the position on the Meng and Huawei issues makes some business interactions difficult, as they cannot predict Canada’s next steps.”

Global perspective

Some 79 percent of the participants in the survey said the political tension between Canada and China has impacted their operations.

Li Cheng, director and senior fellow at the John L. Thornton China Center at the Brookings Institution, said he would like to convey the importance of maintaining a global perspective to the business community in Canada.

“China is one of the first countries coming out of COVID-19’s impact, though it is still careful of possible second waves,” Li said.

“It’s important for business communities when looking at the market that you should also look at the stability, and even with this challenge, China survived and came out strong.”