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The close relationships China has with its businesses has meant that, in  that they were selling products to Iran against US sanctions, and the belief that China is making a statement that they will continue to operate by their own rules and therefore establish global dominance. It has been made clear by China that they see the Iran sanctions as US domestic foreign policy, which does not have jurisdiction over Chinese citizens and institutions. Although the trade war between the US and  The US itself has not arrested Meng Wanzhou, but Canada, which was previously not a player in the story. In fact Canada has not got any bans  tech sector, and the arrest has been carried out with the intention of extraditing her to the US.


  to lose. Prior to this, Canada has been seeking a free trade deal between the two nations which now looks highly unlikely. China is also Canada’s  is the biggest buyer of Canadian canola which has already fallen victim to this political move; only a month prior to this, they had agreed to  US/China feud as wheat and soybean shipments to the Asian nation have doubled during this time. Arguably Trudeau is having to balance Canada’s political ties with the west and mounting pressure from their  warnings of repercussions. This could mean an expensive lawsuit for the Canadian government as Trudeau’s predecessor signed a foreign investor protection agreement.


CHINA IS ALSO CANADA’S SECOND LARGEST EXPORT MARKET SPECIFICALLY IN AGRICULTURAL PRODUCTS AND IS THE BIGGEST BUYER OF CANADIAN CANOLA WHICH HAS ALREADY FALLEN VICTIM TO THIS POLITICAL MOVE.


China has been viewed as one of the biggest prizes for his trade negotiators following a rocky period of negotiations with the US, which is Canada’s largest trade partner. The unpredictable political environment is therefore of huge concern to  unchartered territory with both trading partnerships being soured. In this ongoing power struggle, Canada is unlikely to be the only country with a lesser economic might being drawn into the decision to choose trade or allies. Increasingly, technology is blurring the lines of commodity product and political tool.


Lauren Judd E: lauren.judd@adm.com T: +44(0) 1322 444 820


7 | ADMISI - The Ghost In The Machine | March/April 2019


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