In The Know

Diversifying away from the Chinese market would not be catastrophic for Canada: Inside Policy

Engagement with China is often framed as trying to balance addressing human rights abuses while still benefiting economically from the available market opportunities.

This is a wrong way to look at the matter, writes Luke Patey for Macdonald-Laurier Institute’s Inside Policy blog.

“In Canada and the West at large, the debate on engaging China is often framed as one about balancing human rights with economic interests. Yet the black and white dichotomy is an unhelpful one. It drives forward the assumption that standing up for human rights, or for that matter, raising political and strategically sensitive issues with Beijing, will severely jeopardize Canada’s economic interests.”

The reality is quite different, he explains. The cost to Canada in diversifying its exports away from China would not be catastrophic. 

“Beijing will likely retaliate to any Canadian action, but to minimize any economic harm done to selected industries, Canada can continue to broaden its horizons by diversifying its agricultural exports to India, Southeast Asia, and other emerging markets.”

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