Canada unveils new Indo-Pacific strategy, with eye on ‘disruptive’ China

Canada launched its long-awaited Indo-Pacific strategy on Sunday, outlining C$2.3 billion (US$1.7 billion) in spending to boost military and cybersecurity in the region and vowed to deal with a “disruptive” China while working with it on climate change and trade issues.

The plan detailed in a 26-page document said Canada will tighten foreign investment rules to protect intellectual property and prevent Chinese state-owned enterprises from snapping up critical mineral supplies.

Canada is seeking to deepen ties with a fast-growing Indo-Pacific region of 40 countries accounting for almost C$50 trillion in economic activity. But the focus is on China, which is mentioned more than 50 times, at a moment when bilateral ties are frosty.

Four cabinet ministers at a news conference in Vancouver took turns detailing the new plan, saying the strategy was crucial for Canada’s national security and climate as well as its economic goals.

“We will engage in diplomacy because we think diplomacy is a strength, at the same time we’ll be firm and that’s why we have now a very transparent plan to engage with China,” Foreign Minister Melanie Joly said.

Prime Minister Justin Trudeau’s Liberal government wants to diversify trade and economic ties that are overwhelmingly reliant on the United States. Official data for September show bilateral trade with China accounted for under 7 per cent of the total, compared to 68 per cent for the United States.