A Canadian delegation, led by International Trade Minister David Emerson, is in Beijing Tuesday working on patching up frayed relations between Canada and China.

Dealings with Canada's second largest trading partner have become icy in recent months after Prime Minister Stephen Harper publicly criticizing China's human rights record saying Canada wouldn't sell out "to the almighty dollar."

The rhetoric prompted a Chinese backlash and a storm of protest from Canadian industries with interests in China.

Emerson told Canada AM on Monday that it was possible to find a balance between trade and human rights.

"When we think about human rights and loss of freedom, you don't see it on the street here. You see people who are doing extremely well and I think the reality is that there is a way that we can engage openly and constructively with the Chinese government on issues like human rights but it doesn't have to get in the way of our economic relationship," said Emerson.

"I think human rights, democracy, rule of law and freedom goes hand in hand and reinforce economic progress and we just have to handle it in a careful way -- we have to be open, we have to be constructive, we have to engage and I've had a very good reception here."

Under the Liberals, then-prime minister Jean Chr�tien walked a fine line with China -- talking business in public and raising human rights concerns in private.

On a tour of the 2008 Olympic site, Emerson -- a former Liberal himself -- hinted the Conservatives may return to that approach.

"I'll be raising it with the appropriate minister, I don't intend it to get in the way of the fundamental economic issue."

Trade agreements

Emerson signed two agreements with China on Tuesday.

The first was a Science and Technology Cooperation Agreement that will boost collaborative research and development activities between the two countries in both the private and public sectors.

"Now more than ever before, the world economy is driven by innovation," Emerson said in a press release. "This agreement is a recognition that both Canada and China are world leaders in science and technology. It will encourage researchers and businesses from our two countries to work together, share expertise and forge new partnerships."

Under the agreement, the initial focus will be on four priority areas: energy, the environment, health and life sciences, and agricultural foods and bioproducts.

The second initiative is a signed Memorandum of Understanding that will open the door to co-operation on trade gateways and corridors between Canada and China.

"This agreement is a clear signal that Canada has a lot to offer as a gateway between Asia and North America," Emerson said in a press release. "We will work closely with the Chinese on the development of our gateways and exchange expertise to strengthen our own respective approaches. This cooperation will contribute to Canada's competitiveness as a gateway of choice between Asia and North America."

The agreement outlines key areas where the two nations can encourage cooperation on gateways including research, technical exchanges and gateway development planning.

Emerson said Canadians should not be worried about Chinese investment domestically.

"I don't think we should be putting ourselves in the position where we're negative or we're threatening foreign investment," Emerson told Canada AM.

"We've already got Chinese investments in the oil sands.... and certainly our government is keen to encourage Canada's greater participation in the global economy, not to chase investment away."

Finance Minister Jim Flaherty will join Emerson in China this week to stress Canada's desire to focus on trade.

Emerson's visit to China ends January 19.