Thank you, Mr. Chair.
Before I start, I want to apologize for my informal appearance. I'm actually just transiting Toronto on the way to go trekking in Turkey, so I'm stopping in to do this.
My statement is about eight minutes. I'll go through it as quickly as I can.
Thank you for inviting me to appear before this committee. It is an honour to have the opportunity to discuss the Canada-China relationship, something that occupied a sizeable portion of my career in Canada's foreign service.
I've had the privilege of observing and participating in the Canada-China relationship for over 30 years. This included three postings to our embassy in Beijing between 1984 and 2008, as well as serving as deputy negotiator for Canada during China's accession to the World Trade Organization, and later on as director general for north Asia in what is now Global Affairs Canada.
These assignments were both fascinating and difficult because managing Canada-China relations, even at the best of times, is challenging. China is complex and full of contradictions. Its diplomatic face can be smooth and sophisticated, or ham-handed and brutish. As Canada has now witnessed first-hand, its reward-and-punishment approach to relations with all but the most powerful of countries means that relations can turn on a dime and suddenly enter a deep freeze. That's what Canada is experiencing now. With the arrests of the two Michaels in retaliation for Canada's detention of Meng Wanzhou, bilateral relations have plunged to their lowest point since Canada and China established diplomatic relations 50 years ago.
The Meng Wanzhou case presents some very difficult choices for the government. There is no perfect solution. It can let the case work its way through the court system. If the judge rules that the extradition should proceed, this will lead to a trial and possibly many years of detention and imprisonment under very difficult circumstances for the two Canadians. If the Minister of Justice decides to intervene in the case and release Meng in order to obtain the release of the two Michaels, it rewards China's bad behaviour. Let's not forget that they are not the first Canadians to have been arbitrarily arrested in response to actions by the Canadian government. For this reason, it is imperative that such a decision be part of a broader, comprehensive strategy for managing our relationship with China.
China sees this issue, I believe, in geopolitical terms and Meng's arrest as part of a larger U.S.-led strategy to hinder China's rise and to undermine China's leading companies. They will not back down. For this reason, I believe the only way to obtain the release of the two Michaels is through the release of Meng Wanzhou, either as a result of a judicial decision or action by the Minister of Justice.
If this latter approach is taken, it would need to be part of a broader decision that would include turning down Huawei's 5G application and restoring Canada's access for canola, and other outstanding issues. I also think Canada could play a leading role in crafting a collective response to China's practice of taking hostages. China has been engaged in this practice with virtual impunity for some time, and has arbitrarily imprisoned citizens of a number of countries. If all countries affected by this practice could commit to a common and collective response—trade measures, for example—when a citizen of one of the countries is taken hostage, it would send a strong message to China that such actions will not be tolerated. It's a complex and tough situation, and charting a way forward will be difficult. There's been talk, particularly from China's side, about getting through this current situation and putting the relationship back on track, which implies returning to the way things were before Meng's arrest. I don't think we can go back to the way things were before. This case has done significant harm to China's image in Canada, and has led to a fundamental shift in Canadian attitudes, and in the relationship itself.
China is and will continue to be important to Canada, both as an economic power and a global player, but the current situation has underscored the importance of approaching China with a critical eye and an understanding of what drives its foreign policy decisions. China's approach to foreign affairs is tough, strategic and driven by power rather than principle. It is almost exclusively focused on advancing its own interests through the exercise of hard and soft power, including in global institutions. Its perspective is informed by its history of being carved up and invaded by foreign powers in the late 19th and early 20th centuries. Because of this, China is determined never to be weak again and is focused upon returning to its earlier prominence as a global power. Within the Chinese system there is a strong undercurrent of skepticism and suspicion of the west's intentions and ultimate agenda with respect to China.
We should also keep in mind that a fundamental driver of Chinese foreign policy, indeed all policy, is keeping the Communist Party in power. The leadership is thus focused on stability, which requires sustained economic growth, peaceful relations at its borders and, increasingly, addressing middle-class concerns about environmental degradation and corruption. Securing and maintaining this stability is also part of Xi Jinping's drive for a stronger global presence and leadership role for his country.
Successful management of relations with China requires a clear sense of Canada's priorities and interests and a tough-minded commitment to advancing and defending them. Stories of early Canadian missionaries in China, of Norman Bethune and of Canada's decision to sell wheat to China in the wake of the great famine, all provide good imagery and heartwarming content for speeches but are largely irrelevant. China deals in power and respects power. A firm and strategic push-back in defence of Canada's interests and knowing where our leverage lies will garner respect. Being too accommodating out of concern for friendship or fear of offending will make us seem weak. China plays this game well.
It is also important for our government to avoid the tendency to view China through a preconceived ideological or political lens or through a single issue. Doing so undermines our capacity to deal with the complex reality of the country and our relationship with it.
The past two decades have seen wide swings in how successive governments have initially approached China. An overarching long-range vision supported by all parties would put Canada in a more advantageous position to consistently manage our relations with this country.
Moving forward, Canada needs a balanced approach based on a realistic understanding of China as it is, the opportunities and the challenges. This approach should also inform Canada's approach to Asia as a whole and our view of China's place in our approach to the region. With its strong focus on China over the last decades, Canada may have overlooked opportunities to form deeper ties with other countries whose markets are easier to navigate and whose systems—in Japan, for example—are based on the rule of law. The CPTPP should help in this rebalancing and diversification of Canada's trade interests in Asia. Canada's public support for broadening the agreement to include Thailand and Taiwan would further help this diversification.
Canada should also give consideration to its relationship with Taiwan, a vibrant and progressive democracy and the only Asian country to approve same-sex marriage. Canada and Taiwan have a healthy trading relationship with good potential for the future. Prime Minister Trudeau's public statement in support of Taiwan's meaningful participation in organizations like ICAO and the World Health Assembly is a good signal, but there is more that Canada could do to advance our interests there. A visit by a Canadian economic minister to support Canadian commercial objectives would respect the parameters of a “one China” policy and would send an important signal to both China and Taiwan.
Successful management of Canada-China ties requires coordination and coherence. Many federal government departments and most provinces have interests in the country. Although provinces sometimes compete for investment and students, they should be encouraged to buy into Canada's broader agenda in China. On core and important issues like human rights and the two Michaels, Canadian governments at all levels should present a united and consistent front in their discussions with their Chinese counterparts.
Canada-China relations are in a difficult place right now, and there is no easy path forward, but this is also an opportunity to objectively assess the relationship and to develop a realistic and balanced approach to our ties with this important global power.
I wish you all the best in these important deliberations.
Thank you.