The dissonance between Trudeau’s progressive ideals and mainstream beliefs among the Chinese people is part of the reason why Trudeau found it hard to strike a trade deal with China during his recent state visit.

There were great expectations in Canadian business circles that Prime Minister Justin Trudeau’s visit to China would result in the announcement of the beginning of bilateral trade negotiations between the two countries. But it didn’t happen. Trudeau’s visit is being assessed in some quarters in Canada as a failure, but it is important to get the terms right before embarking on what will be a long and difficult negotiation.

In a non-NAFTA world, Canada and the U.S. will still continue to trade and the U.S. will continue to be Canada’s largest trading partner, albeit under somewhat different rules. The real change will be psychological. In the eyes of many in Canada, the U.S. can no longer be trusted to play by the rules, and to assume its traditional role as a champion for liberalized trade. Against this backdrop, Canada and China are going through the preliminary stages of launching their own trade negotiations.

On the eve of Chinese Premier Li Keqiang’s official visit to Ottawa, the Globe and Mail reported that Canada and China had agreed to begin negotiations on an extradition treaty.

Prime Minister Trudeau must introduce greater balance into Canada’s international trade profile in order to diversify from an overwhelming reliance on the United States and towards a bilateral relationship that will ensure trade growth with China, Canada’s second largest trade partner.

As the U.S. moves to recalibrate its own relationships with a rising China on trade, the environment and security issues, its neighbors and allies are forging their own path on building economic, political, and cultural ties.

Following the ratification of Canada’s Foreign Investment Protection Agreement with China, Hugh Stephens examines the controversy surrounding the Canadian agreement and explains how existing trade and investment treaties between China and the United States promote Canadian investment interests as well.

Hugh Stephens discusses the rationale behind Canada’s recent decision to eliminate its immigrant investor and entrepreneur program, and the impact that it might have on similar US programs. The Canadian government review concluded that the investor immigrant program did not provide a good ROI for Canada. This decision, along with tighter citizenship qualification policies, will likely dampen enthusiasm for future Chinese investor immigration to Canada although other channels remain open. The termination of the Canadian program will cause increased interest in the US EB-5 visa program although absolute numbers of visas granted is unlikely to increase significantly.

After nearly two years at a standstill, Canada’s immigrant investor program, which was flooded by applicants from Mainland China, is set to come to a close with the possibility of reopening sometime in the near future. As Dan Redford explains, the closing of Canada’s program could be a catalyst for EB5 visas, a similar investment program in the United States.

Is China engaging in a modern day version of dollar diplomacy? As Fernando Menéndez explains, China’s use of political and economic influence mirrors the previous intervention of the United States in Central America and the Caribbean.