Thank you for the invitation to appear before the committee today.
Since 1978, the Canada China Business Council, CCBC, has served as the leading voice of the Canadian business community on China, working to advance practical solutions that support responsible commercial engagement and advance Canada's national economic interests. We represent more than 300 member companies from different sectors across Canada. Our membership includes major Canadian corporations and small and medium-sized enterprises that are actively engaged in trade and investment with China.
China is Canada's second-largest trading partner, with bilateral merchandise and services trade of around $130 billion. The economic impact of the relationship is substantial. Trade and investment with China supports over 400,000 Canadian jobs nationwide.
China is also a major source of foreign direct investment into Canada. FDI stock in Canada from China and Hong Kong reached approximately $65 billion in 2024. Investment and trade ties with China support economic activity in many different sectors across Canada, including oil and gas, mining, finance, forestry, agri-food, consumer products, manufacturing and tourism, among other sectors. Education ties are equally important and contribute significantly in terms of economic value and people-to-people ties.
In recent months, and particularly since Prime Minister Carney's visit to China in January, we have seen constructive progress in the bilateral economic relationship. High-level engagements by the federal government that began around the summer of last year have led to tangible and positive outcomes.
During the Prime Minister's recent visit to China, the two governments agreed to a package of solutions to address some of the irritants and tariff escalations that severely impacted bilateral trade, particularly with our agri-food workers and producers across the country. Through these agreements, starting March 1, China will lower tariffs on Canadian canola seed to a combined rate of approximately 15% from the current rate of 84%. China will also remove its 25% anti-discrimination tariffs on Canadian canola meal, lobsters, peas and crabs. In addition, China has dropped its ban on Canadian beef and is expected to accelerate restoring access to Canadian pet food. The Canadian government also agreed to a limited quota system that will allow 49,000 Chinese electric vehicles to enter the Canadian market, with a focus on bringing affordable EVs to Canada and opening up opportunities for joint investment by Chinese automakers in the Canadian EV supply chain.
The new Canada-China economic and trade co-operation road map, which was signed during the Prime Minister's visit, and the reconvening of dialogue mechanisms such as the economic and financial strategic dialogue, financial working group, ministerial dialogue on energy and joint agriculture committee provide important mechanisms for ongoing engagement to address current challenges and explore opportunities to further expand mutually beneficial economic co-operation. The Canadian business community has responded positively to Ottawa's efforts to recalibrate bilateral ties.
In CCBC's latest business survey, conducted by the Rotman Institute for International Business at the University of Toronto, 82% of surveyed Canadian firms indicated that the government's renewed approach to China would have a positive impact on their business outlook. A third of the surveyed firms reported that they are preparing to expand their business with China.
Looking ahead, I would offer four brief recommendations.
The first is to actively use the re-established bilateral mechanisms to address trade barriers and improve market access for Canadian businesses. To provide two examples, access for pet food and tariffs on Canadian pork are still challenges that we need to work on.
The second is to provide clarity and predictability in investment policy. There are opportunities to responsibly attract capital into both conventional renewable energy projects and to manufacturing and agri-food. Clarity on sectors open to investment, national security guardrails and an efficient review process are essential.
The third is to support Canadian business development efforts in China. China is one of the most competitive markets in the world. Canadian companies succeed there because of quality, reliability and brand strength. Further investment toward enhanced export promotion, trade missions and sector-specific support can help more Canadian firms compete effectively.
The fourth is to facilitate travel, education and business exchanges. Canadian companies frequently raise concerns about visa-processing timelines for Chinese partners, customers or prospective clients travelling to Canada. If we want to fully capitalize on renewed momentum in bilateral engagement, Canada will need to look at improving the efficiency of our visa processes.
In closing, the Canada-China economic relationship is complex, but it's also consequential. A pragmatic, disciplined and well-structured engagement strategy is not about ignoring differences. It is about advancing Canadian prosperity and national interest in a changing global environment. At a time when Canada is seeking to diversify its trade and double its non-U.S. exports within the next decade, China's scale and growth trajectory remain highly relevant.
Thank you. I look forward to your questions.