The shock of the ongoing global recession has heightened the importance of Canada's relationship with China, its second-largest trading partner after the United States.

Sino-Canadian commercial ties have grown significantly in recent years, with companies such as Deloitte & Touche leading the way in helping Chinese companies expand to North America.

China is now Canada's third-largest export market and its second-largest source of imports - yet both sides recognize there is further room for growth.

One of Canada's most ambitious measures to further develop the relationship is its Asia-Pacific Gateway and Corridor Initiative (APGCI).

Capitalizing on its geographic location, the initiative shared by Canada's public and private sectors allotted an initial $1.3 billion to build or renovate ports, roads and rail connections from Canada's west coast to the US Midwest.

"Our goal is to make it as easy and low-cost as possible for Canadians to get their goods to tidewater and conversely for Chinese exporters to get their goods not only to Canada, but also to the US market," said Minister of International Trade and APGCI head Stockwell Day.

As a result, ports in the western province of British Columbia quickly became the choice entry and exit points for Canada-China trade. "The transit from key export sources in China are about 1,100 nautical miles closer by going through the port of Prince Rupert than they are going to Los Angeles," Day said.

At the core of Canada's trade relationship with China is the country's abundance of natural resources. "China's growth requires a full range of commodities - which Canada has," said Day.

Canada's mining industry is a valuable part of the linkage as China is now one of the world's largest gold consumers, with silver, copper and molybdenum demand also on the rise.

Renowned as one of the mining capitals of the world, Canada has not only an abundance of resources but also cutting-edge technology and methods for extracting commodities and bringing them to market.

Forestry is another industry that presents significant potential for bilateral trade. Canada holds 10 percent of the world's forests and is a global leader in forestry technology and sustainable forestry management practices.

As the world's second-largest wood importer next to the US, China is a natural market for the Canadian forestry industry, especially due to the environmental and safety benefits of building with wood.

Oil and gas is another sector that has attracted the attention of Chinese investors. As China currently consumes twice as much oil as it produces, the country has become the second-largest energy importer in the world.

The Canadian province of Alberta has 173 billion economically recoverable barrels of oil with the potential for 3 trillion barrels as oil sand technology advances, making Canada's oil reserves the second-largest in the world after Saudi Arabia.

(China Daily September 1, 2009)