Power of Underestimation: China-Canada International Trade Essay Example

  • Category: Economics, Trade,
  • Words: 570 Pages: 3
  • Published: 13 August 2020
  • Copied: 192

Not long after Donald Trump took the position as President, he began to complain about the trade between the US and China. Over time, the Trade War evolved rapidly and entangled the Global market/economy into its calamity. Meanwhile, the effects of the Trade War seem to be worsening as the animosity between China and the US escalates, unfortunately, Canada got caught in the middle of this economic catastrophe. As the Nation of Peacemaking, Canada has been “pushing for more, more, more ties with China” said John McCallum, Canada’s former ambassador to China. This “peacemaking” country has underestimated the power of China and their decisions will be proven irrational with relentless consequences stated by a CNBC news reporter.

It all started in December 2018, when Meng Wanzhou was arrested and extradited of fraud. She was the Chief Financial Officer for Huawei; the second-largest producer of mobile devices in the world. Around that time, the US-China trade was tempestuous, and Apple; the world’s largest producer of mobile devices was shaken by the sudden acceleration of Huawei. The tension was severe and Meng Wanzhou’s case was the final straw, the Chinese believe Meng’s case was a false accusation, according to People’s Daily (a Chinese news broadcasting channel). They were triggered and progressed their anger to Canada due to the extradition in Vancouver requested by the United States of America.

As a result of misreckoning China’s power, Canada’s economy has suffered greatly in a few months time. Not long ago, China blocked all Canadian canola seed imports and obstructed the soybean exports. News following the interference, the country has terminated all meat imports from Canada. Reported by Maclean’s News, experts predict that China will continue to attack the Canadian agricultural front, as a result, Canada will lose hundreds of billions of dollars and this will also cost the synergism between China and Canada.

After the announcement of China disengaging agricultural trades with Canada, the federal government quickly leaned-on to the United States to improve the Canadian economy as a response to the crisis. In this situation, “a sign of increasing frustration at what it sees as a lacklustre U.S. response,” a Canadian government source commented. This brings up questions as concerns to the abilities of the current Prime Minister; Justin Trudeau, as President Trump once called Trudeau to be “very dishonest and weak.” Regarding the misjudgment on the political powers of China, it challenges the capability of the Canadian government and an obvious concern as to how our leader; Trudeau has the ability to dominate as the Trade War continues.

China has also sent Chinese fighter jets that reportedly buzzed a Canadian warship in the East China Sea last Thursday. This was provoking hostility while demonstrating the failure of the federal government to stand up to the provocation. In addition, two Canadians were detained and a third sentenced to death after the Meng Wanzhou, indicating that China wants “blood for blood” instead of compromising; hinting their dominance and power that Canada lacks. It was a naive decision to displease the second-largest trading partner in order to please the US; the largest trading partner of Canada. Stated in a Maclean’s article that “we need China more than it needs us,” is a solid reason to retain both trading relationships with China. Thanks to China, Canada has made $21.3 billion last year, equivalent to 4.7% of the trading system of Canada.

With the dispute, Canada costed a valuable trade partner, a loss of capital (billions), and shows concerns about the capability of the Canadian government. It is time to reconsider the potential of our country; does Canada have the potential power to face China upfront economic wise? And is our current Prime Minister capable of improving the current economy?



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