Chart of the Day: China’s Shrinking Trade Surplus With Canada

China’s trade surplus with Canada for the first 11 months of 2018 shrank 40% year-on-year thanks to a pickup in Canadian exports to China.

The trade surplus reached $6.1 billion, down from $10.3 billion in the same period last year, according to data from China’s General Administration of Customs. Through November, the value of Chinese goods and services exported to Canada increased 11% year-on-year to $32.3 billion, while the value of Canadian goods and services exported to China jumped 41% to $26.1 billion.

Graphic: Gao Baiyu/Caixin

China is Canada’s second-largest trading partner after the U.S. In 2017, China imported 4.3% of total Canadian exports. Plant and agricultural products top Canada’s export list to China. The products made up about 20% of exports to China in 2017. Natural resources, commodities and minerals are the other major Canadian exports to the country, according to the Chinese government (link in Chinese).

Major Chinese exports to Canada include mechanical and electrical products, furniture, as well as toys and textiles, according to the Chinese government.

The two countries’ trade relationship has come under rising uncertainty following the recent arrest in Canada of Meng Wanzhou, the chief financial officer of Huawei Technologies Co. Ltd., a major Chinese manufacturer of networking equipment.

China’s Ministry of Foreign Affairs has taken a strong stance against the arrest and has requested the immediate release of Meng.