As Prime Minister Justin Trudeau meets with China’s top leaders during an eight-day trip, a new poll shows growing Canadian support for free trade and closer economic ties with Asia.
The online survey of 3,526 adults, conducted by EKOS for the Asia Pacific Foundation, found an equal number of Canadians -- 46 per cent -- support and oppose a free trade agreement with China.
That level of support for free trade with Canada’s second-biggest trade partner is 10 per cent higher than when the question was asked for a similar APF poll in 2014.
The survey also finds growing support for free trade in general -- 75 per cent in 2016 versus 68 per cent in 2014 -- and with other Asian countries, including:
- India: 55 per cent, up from 38 per cent
- Japan: 72 per cent, up from 56 per cent
- Southeast Asia: 54 per cent, up from 37 per cent
Canada’s first free trade agreement in Asia, with South Korea, came into effect in 2015.
The Liberal government has signed on to -- but not yet ratified -- the U.S.-backed Trans-Pacific Partnership, which includes free trade with Japan and Vietnam.
The APF survey finds 44 per cent support the TPP, while 37 per cent are opposed.
Opportunity or threat?
Those surveyed also seem increasingly optimistic about China’s growing economic rise, with 49 per cent agreeing it presents “more of an opportunity than a threat,” compared to 41 per cent who said in 2014 that it was more of an opportunity than a threat.
However, Asia’s other rising economic giant, India, saw a bigger bounce in the number of Canadians who see its growth as “more of an opportunity…,” with 67 per cent agreeing in 2016, up from 50 per cent in 2014.
Despite China’s rising importance in the minds of Canadians, twice as many people still see the U.S. (81 per cent) as highly important to national prosperity than China (40 per cent), according to the poll.
About half (54 per cent) see the European Union as highly important to Canada’s prosperity, compared to about a third (34 per cent) who see Japan as highly important and nearly a quarter (24 per cent) who see India as highly important.
When it comes to whether the government should spend money on incentives to encourage more Canadian companies to set up operations in Asia, Canadians are divided, 44 per cent to 44 per cent.
Investment by state-owned enterprises
Despite wanting to do more trade with countries like China, Canadians are generally wary of state-run businesses, according to the poll. A majority (56 per cent) agree that SOEs give an “unfair advantage,” while 80 per cent oppose allowing Chinese-owned companies to invest in Canada.
High numbers are opposed to investments by state-owned enterprises from Malaysia, (74 per cent) and India (71 per cent) too, while fewer are opposed to investments from companies owned by Japan (59 per cent) or Australia (47 per cent).
China’s state-owned businesses -- which account for about a fifth of the nation's industrial output, down from four-fifths in 1980 -- already have investments in Canada, including the oil and gas firm Nexen, which was purchased by CNOOC Limited in 2013.
Malaysia’s state-owned oil and gas firm Petronas is currently trying to get a $36-billion liquefied natural gas terminal off the ground in British Columbia.
The poll found twice as many people (56 per cent) say they support selling natural gas to Asia than are opposed (28 per cent).
Those polled seem much more concerned about the level of Chinese investment in real estate, with 62 per cent agreeing there is "too much investment” in Canadian real estate.
British Columbia recently added a 15 per cent tax on foreign investment in real estate in the Vancouver area, due to rising prices resulting from property speculation that many blamed on foreigners.
Potential pitfalls
One potential barrier to greater economic ties is concern over human rights. More of those surveyed (41 per cent) disagreed that the human rights situation has improved China over the past 10 years than agreed (35 per cent).
Canadians are also concerned about China’s military clout, with 65 per cent of those polled calling its growing military power a “threat to the Asia Pacific region,” up from 60 per cent in 2014.
Of particular concern: nearly half of those polled (46 per cent) believe that “outright military conflict between countries in the Asia Pacific is likely in the next 10 years.”
Canada must ‘work harder’
Gordon Houlden, who directs the China Institute at the University of Alberta and held diplomatic posts in Beijing, told CTV News Channel he believes Canada has not paid enough attention to growing economic ties with China.
“I think we’re a bit spoiled by our close access and proximity to the United States."
The U.S. accounts for about three-quarters of Canadian exports.
Such close dependence can lead to problems when the U.S. throws up trade barriers, such as with softwood lumber, he said.
"As we learned particularly during the financial crisis of 2007-08, the U.S. market can also shrink,” he added.
Houlden said that an oil pipeline to serve the Chinese market could eliminate Canada’s huge trade deficit with China “in a few months,” but with none on the horizon Canada needs to start selling more processed goods like food.
“There’s no choice but to work harder, to do better in that market,” he said.