China’s rise as a global power has left no region untouched, and Canada, a resource-rich nation situated between the United States and the Arctic, finds itself pulled into Beijing’s widening geopolitical orbit.

While Canada is not always the centerpiece of global headlines on U.S.–China rivalry, its position as a middle power, a member of the Five Eyes intelligence alliance, and a nation deeply dependent on trade makes it a unique case in Beijing’s global strategy. China’s geopolitical push into Canada has unfolded through economic investments, political influence operations, technology disputes, and Arctic ambitions — all of which raise urgent questions about sovereignty and security.

Economic Influence: Trade and Resource Access

One of the main levers of Chinese influence in Canada lies in economic relations. China is Canada’s second-largest trading partner, with billions of dollars in goods exchanged each year. Canada exports agricultural products like canola, pork, and soybeans, as well as minerals and lumber, to the Chinese market. In turn, Canada imports a wide array of manufactured goods from China, making the relationship deeply asymmetrical.

This dependency allows Beijing to exert pressure. When Canada detained Huawei executive Meng Wanzhou in 2018 at the request of the United States, China retaliated by blocking Canadian agricultural exports and detaining two Canadian citizens, Michael Kovrig and Michael Spavor. The episode revealed how quickly economic ties can be weaponized to achieve political ends.

At the same time, Chinese companies have invested heavily in Canada’s natural resources sector, including mining for critical minerals like lithium and rare earths, which are vital for global supply chains in clean energy and technology. Critics argue that this creates long-term strategic vulnerabilities, with Canada risking excessive reliance on a geopolitical rival for market access and capital.

Security Concerns: Investments and Technology

Beyond trade, China’s role in Canada has raised serious national security alarms. Canadian intelligence agencies have repeatedly warned about Beijing’s attempts to gain influence over critical infrastructure and advanced technology.

The most visible flashpoint has been Huawei’s involvement in 5G networks. While the United States pressed its allies to block Huawei, Canada hesitated for years before finally announcing in 2022 that it would exclude the company from its telecommunications infrastructure. The delay underscored Canada’s struggle to balance economic interests with security imperatives.

Similarly, Chinese investment in Canadian energy, mining, and real estate sectors has prompted debates about whether such ownership compromises sovereignty. In 2022, Canada ordered several Chinese firms to divest from Canadian critical mineral companies, citing national security concerns. These moves demonstrate that Ottawa is increasingly wary of China’s economic footprint crossing into strategic assets.

Political Influence and Domestic Interference

China’s geopolitical push is not limited to markets and minerals — it extends into Canadian domestic politics. Allegations of Chinese interference in Canadian elections, including through donations and influence over diaspora communities, have sparked major political debates.

Canada’s large Chinese diaspora provides Beijing with opportunities to project influence through community organizations, media outlets, and even direct intimidation of critics of the Chinese Communist Party (CCP). The controversy around alleged “police stations” operated by China in Canadian cities has further fueled concerns about foreign interference undermining Canadian sovereignty.

While Beijing denies such activities, Canadian intelligence reports suggest that China has sought to shape public opinion and political outcomes in ways favorable to its interests. This adds another layer of complexity to Ottawa’s China policy, as the government must balance protecting democratic institutions with avoiding stigmatization of Chinese-Canadian communities.

The Huawei Affair and Its Aftermath

Few episodes have shaped Canada’s relationship with China more than the Meng Wanzhou affair. In December 2018, Canadian authorities arrested Meng, Huawei’s chief financial officer, at the request of the United States, which accused her of bank fraud. Beijing responded with what many called “hostage diplomacy”, detaining Canadians Kovrig and Spavor for nearly three years.

The crisis not only strained bilateral relations but also forced Canada to re-evaluate its posture toward China. Public opinion shifted sharply against Beijing, and the government faced pressure to take a firmer stance on security issues, human rights, and trade diversification. The resolution of the case in 2021 did little to restore trust; instead, it left behind a more skeptical Canadian public and a government more aligned with U.S. policy toward China.

Canada’s Arctic and China’s “Near-Arctic State” Ambitions

One of the less discussed but highly strategic areas of China’s interest is the Arctic region. As climate change opens new shipping routes and resource opportunities, Beijing has declared itself a “near-Arctic state” and sought to participate in Arctic governance.

Canada, which controls a vast portion of Arctic territory, finds itself on the frontline of this new arena of competition. Chinese research missions, investments in Arctic infrastructure, and interest in mining projects in northern Canada highlight Beijing’s long-term ambitions. For Ottawa, the challenge is ensuring that foreign involvement in the Arctic does not compromise sovereignty or security, especially as Russia–China cooperation in the Arctic grows.

Human Rights and the Moral Dilemma

Another dimension of China’s push involves Canada’s stance on human rights issues. Canada has taken strong positions on Xinjiang, Tibet, and Hong Kong, aligning itself with Western allies in criticizing Beijing’s policies. These stances have, at times, provoked retaliatory measures from China, reinforcing the sense that values-based diplomacy comes with economic risks.

For Canada, the dilemma lies in balancing principles with pragmatism. While many Canadians demand a tough stance on Beijing’s human rights record, businesses and exporters remain keenly aware of the costs of antagonizing the Chinese market.

Balancing Act: Between the U.S. and China

Ultimately, Canada’s China policy cannot be separated from its relationship with the United States. As a close ally of Washington, a member of NATO, and part of the Five Eyes intelligence-sharing network, Canada is under pressure to align with U.S. efforts to counter Beijing. Yet Canada also values its autonomy as a middle power and does not want to become simply an extension of American foreign policy.

This balancing act is becoming increasingly difficult. As U.S.–China rivalry intensifies, Canada will face growing pressure to choose sides in areas ranging from technology to trade to security cooperation.

Conclusion: A Test of Canadian Sovereignty

China’s geopolitical push into Canada is a test not just of foreign policy but of Canadian sovereignty, resilience, and strategic vision. From economic leverage and political interference to Arctic ambitions and human rights disputes, Beijing’s influence presents both opportunities and challenges.

For Ottawa, the task is clear: to diversify trade, protect critical industries, safeguard democratic institutions, and assert sovereignty in the Arctic, all while managing one of the most complex relationships in modern diplomacy. The way Canada responds will determine whether it emerges as a confident middle power or risks being overshadowed in the shadow of great-power rivalry.