86% of Canadian Firms Prioritize China for Business Confidence

A new survey reveals that a significant 86 percent of Canadian firms are placing China at the forefront of their global business strategies, signaling a robust confidence in economic prospects despite prevailing geopolitical tensions. This heightened focus points towards growing economic ties and the potential for enhanced trade relations between Canada and China.

In particular, the Canada-China Business Survey 2025/2026, conducted by the Canada China Business Council, indicates that over two-thirds of the respondents are gearing up to expand their operations within China. This underscores a pronounced shift in how Canadian companies are reassessing their market strategies in light of evolving global dynamics.

Analysts observe that the warming of bilateral relations has fostered a climate of mutual trust, paving the way for increased business collaboration. The findings suggest that the Chinese market continues to present significant opportunities for global corporate planning, even amidst uncertainties in the international landscape.

Furthermore, the report highlights that 72 percent of surveyed Canadian firms regard their branding as a Canadian company as a valuable asset in China, with more than half expressing optimism about their future endeavors in the country. These sentiments reflect a favorable outlook spurred by recent policy adjustments in Canadian government strategy.

The survey, which also followed up on a previous edition from 2023, comes at a time when geopolitical tensions are driving shifts in global supply chains. It sheds light on how businesses in both Canada and China are adapting to changing policy environments and emerging market conditions.

Following Canadian Prime Minister Mark Carney's changes in approach towards China, over 82 percent of participating firms believe that these shifts could yield positive impacts on their operations. This sentiment illustrates a broader trend of enhanced corporate confidence stemming from policy re-engagement.

The report refers to this current phase of relations as one of pragmatic re-engagement, emphasizing that efforts by the Canadian government to recalibrate economic ties with China have been met with elevated interest from Canadian businesses looking to capitalize on new opportunities.

According to Liu Dan, a research fellow at the Guangdong University of Foreign Studies, this increased cooperation lays a foundational framework for both nations to address external challenges more effectively and promotes resilience in their respective supply chains.

Supporting this perspective, the survey findings indicate strong financial performance, with 61 percent of Canadian firms operating in China reporting profitability or breaking even. Similarly, over three-quarters of Chinese firms indicated positive financial results within the Canadian market.

Overall, the survey implies a structural transition, with China emerging as a pivotal component in global business strategies for Canadian companies. As firms diversify their supply chains, China remains a critical hub, bolstering the significance of the two countries' economic interdependencies.

In January, during Carney's visit to China, multiple cooperation agreements were signed, covering various sectors, including trade, customs, and advanced manufacturing. These developments reflect a renewed commitment to collaboration, with both nations pursuing shared interests.

Moreover, as bilateral trade reached $124.8 billion in 2025, the commitment from both governments to adapt their approaches indicates a mutual recognition of the importance of maintaining constructive and beneficial trade dynamics.