Back in 1979, there was an interesting movie called The China Syndrome, in which it was theorized that the possibility of a nuclear reactor meltdown in the U.S. could be so devastating that it would penetrate through the earth to reach China. Thankfully, that was fiction. A more recent version of the China syndrome that might be threatening Canada, however, is from the perspective of an economic meltdown.
This week’s Council of the Federation meeting – a regular get-together of all provincial premiers – came up with the unanimous conclusion that the premiers recommend the federal government pursue closer relations with China. You have to wonder if a collective case of amnesia has hit the premiers. Or perhaps they just have very short memories.
Have they forgotten that China is the country that regularly breaks trade rules, dumps steel and other products in Canada, kidnaps Canadians when it suits them, steals intellectual property, violates international treaties in Hong Kong and elsewhere, is the world’s largest polluter and has eroded Canada’s manufacturing sector by unfair trade practices? It has also been proven to the point that even Elections Canada admits it that China also regularly interferes in Canada’s elections and, as a result, threatens our sovereignty. China’s activities in committing grievous human rights violations are also well-known. A frequent topic of geopolitical discussions at present concerns the possibility of a Chinese invasion of Taiwan, and China is also known to be funding the Russian war with Ukraine, a strong ally of Canada’s.
As a result of all this, China is the last country with which Canada should want to get closer. This absurd decision is in reaction to trade difficulties with the U.S. The notion that Canada should move on from a centuries-long, massively successful trade relationship with the U.S. because of some short-term trade disruptions, which have happened before in the Canada-U.S. relationship, is a knee-jerk reaction that does not take medium- to long-term considerations into account. Furthermore, the Canadian economy, supply chains and trading relationships are firmly established with the US for very good reasons. The notion these will be substantially changed in short order, which Prime Minister Mark Carney is endorsing, is ridiculous.
It’s well-known that there are forces within Canada who want closer relations with Communist China for their own personal and business gains and are using President Donald Trump’s actions as an excuse to move away from the U.S. Making drastic changes in long-standing Canadian trade relationships based on short-term considerations is foolish and not in the best interests of Canada. Our politicians should be smarter than that. China has never done anything in Canada’s interests – in fact, quite the contrary. There is zero reason to believe this will change in future.
There are so many reasons not to trust China it is shocking that the premiers believe this to be a sensible strategy. For instance, it has been recently shown that solar panels imported from China have been found to have “kill switches” that could shut them down from operating at China’s behest. In the UK, Chinese imports of electric vehicles were found to contain electronics that could immobilize all of these vehicles with the flip of a switch by China. The B.C. government has recently contracted with China for new ferry boats. Does anyone seriously doubt these ferries will contain some kind of device that could shut them down if China so desired? These are but a few examples why our premiers are incredibly naïve to think that getting closer to China is the answer to some trade challenges with the US.
Anyone familiar with Canada’s economic history knows that there have been many attempts over the decades to diversify our trade away from the U.S. They have all failed, not for lack of trying but because we have such an obvious connection with the U.S. economy and U.S. citizens that trying to drastically change trade relationships is like trying to fight gravity.
There is nothing wrong with Canada seeking to diversify its trading relationships on an ongoing basis but pretending our massive relationship with the U.S. – about 80 per cent of our trade – will be replaced by the European Union, China or anyone else is dishonest and unrealistic. It is shameful for the Carney government to imply otherwise. Instead of pretending to fight with the U.S. administration – which may have political appeal to some Canadians – our governments should be pursuing productive negotiations and dealing with a number of trade irritants that will not only satisfy U.S. interests, but work to the advantage of Canadians, our business community and our domestic economy. The current Canadian government strategy can best be characterized by “cutting off our nose to spite our face.” That’s never a very useful plan. Pursuing another China syndrome will only end in nuclear winter for Canada.
She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.
