For almost a century, Canada's economy has been firmly tethered to its much larger southern neighbor. Now, Canadian officials and executives also are betting their future on China.
Canada's economic reliance on the U.S. has ebbed for decades amid sporadic efforts to diversify. But weak demand from a prolonged economic downturn south of the border has accelerated the move, sending Canadian companies looking for new markets.
Climbing oil production in the U.S. is upending American demand for Canadian hydrocarbons. That has spooked Ottawa, suddenly worried about finding buyers for its own growing crude exports, almost all of which now flows to the U.S.
The shift is sharpest here in Western Canada, rich in resources and closer to China. Last year for the first time ever, British Columbia sent more exports to the Pacific Rim than to the U.S. Chinese investors have beat out U.S. investors in Canada's oil patch every year since 2009, pumping $12.8 billion into companies and projects since then, according to Dealogic. British Columbia and the federal government have embarked on a massive push, spending billions of dollars, to retool the country's infrastructure to facilitate more trade with Asia. . .View Full Article