Canadian business groups say firms are moving from a "wait-and-see" approach toward more active positioning in the Chinese market, as improving sentiment and clearer policy signals encourage companies to re-engage and pursue new opportunities.

"For many Canadian companies, this is a constructive time to deepen or expand commercial engagement with China, provided they do so strategically and with appropriate planning and risk management," said Bijan Ahmadi, executive director and COO of the Canada China Business Council.

"There is clear positive momentum within the Canadian business community toward engagement with China," he told China Daily.

Citing a recent CCBC survey, he said that "68 percent of Canadian companies said they are preparing to expand their operations in China, and 86 percent identified China as a top or No 1 priority in their global strategies."

Trade figures highlight China's continued importance. Canada-China bilateral merchandise trade reached C$124 billion ($89.5 billion) in 2025, with Canadian exports to China rising 13.8 percent to C$33.5 billion, according to Ahmadi.

He said several factors are driving renewed interest among Canadian firms.

"First, scale still matters. China remains one of the world's largest and most consequential markets, and Canadian firms continue to view it as strategically important," Ahmadi said.

He also pointed to sector-specific opportunities. "In 2025, Canada's exports to China were increasingly driven by energy and minerals," he said, noting that "energy exports rose 77.8 percent to C$9.5 billion," while "metal ores and minerals increased 42.5 percent to C$7.91 billion."

Policy signals are also shaping business sentiment. According to the CCBC survey, "82 percent of Canadian companies believe that Prime Minister Carney's current approach to China will have a positive business impact," he said.

Ahmadi said that China's role is evolving beyond a traditional export market.

"China is not only a major market for Canadian exports but also an increasingly important center of innovation and advanced technology," he said, adding that it is "a key supplier of inputs for Canadian manufacturers."

At the same time, political dynamics continue to influence corporate decision-making.

"Businesses are responding positively to renewed bilateral engagement. Many companies see more room for practical and commercially focused engagement than they did a few years ago," he said.

At the same time, US policy shifts continue to pose risks. "Shifts in US trade and foreign policy can have broad macroeconomic and geoeconomic impacts that affect Canadian businesses operating globally, including in China," he said.

Looking ahead, Ahmadi said he expects "pragmatic growth" in bilateral ties, "and we are already seeing signs of that momentum".

However, he said that future progress will depend on several factors, including "policy stability and sustained official dialogue," as well as developments in tariffs and market access.

"The broader geopolitical environment, particularly US-China relations, will remain a key factor," he said.