Canada Gave Nearly $8M in Aid to China in 2021-2022: Report to Parliament

Chinese police officers stand guard outside the Canadian embassy in Beijing on Dec. 10, 2018. Greg Baker/AFP via Getty Images

Canada continues to provide millions in foreign aid to communist China despite a deteriorating bilateral relationship and calls from MPs to cut financial support to the regime.

According to the most recent Statistical Report on International Assistance presented to Parliament, Canada allocated a total of $7.59 million to China during the fiscal year 2021-2022, with Global Affairs Canada contributing the majority at $5.6 million, as first reported by Blacklock’s Reporter.

The Conservatives have long advocated for terminating all foreign aid to China. In an April 2020 press conference, former Conservative leader Andrew Scheer said he didn’t think Canadian taxpayers “should be sending any money to China,” which he categorized as a “Communist dictatorial government.”

“We’re talking about a Communist dictatorial government that abuses human rights, quashes freedoms, violates rights of its citizens, and has a very aggressive foreign policy all throughout the region,” Mr. Scheer said at the time, highlighting Beijing’s arbitrary detention of Canadian citizens Michael Kovrig and Michael Spavor. The detention of the two Canadians was widely regarded as a retaliation for Ottawa’s arrest of Meng Wanzhou, senior executive of the Chinese telecom giant Huawei, on a U.S. extradition warrant.

While the incident strained the Canada-China relationship, subsequent contentious issues further deepened the rift. These included the global impact of the COVID-19 pandemic, revelations about China operating secret police stations in Canada and around the world, as well as numerous cases of Beijing’s alleged espionage and intimidation campaigns targeting Canadian citizens and politicians.

In March 2023, the U.S. House of Representatives passed a bill instructing the Secretary of State to adopt measures, including removing China’s “developing country” label from international organizations and future treaties. This aims to prevent preferential treatment or assistance to China based on this status.

Despite being the world’s second-largest economy, China holds a developing country label in various international organizations, including the United Nations, which enables it to “game the system and hurt countries that are truly in need,” Rep. Young Kim (R-Calif.) said, as reported by The Hill.

In the Statistical Report, Global Affairs Canada highlighted its leadership in international assistance, striving to “reduce poverty and inequality” by leveraging Canadian expertise and financial resources. This includes providing bilateral development aid, supporting multilateral organizations, addressing humanitarian crises, and offering security and stability assistance in fragile and conflict-affected states.

The recent figures outlining aid to China do not include $18.7 million in repayable Export Development Canada loans in China or the finance department’s US$159.2 million acquisition of shares in the Asian Infrastructure Investment Bank (AIIB) in Beijing, according to Blacklock’s Reporter. Opposition MPs have persistently called for cabinet to withdraw its investment in the bank, a matter under scrutiny in ongoing hearings by the House of Commons Special Committee on the Canada–People’s Republic of China Relationship (CACN).

Established in December 2015 with an initial 57 member states, the AIIB is the first global multilateral financial institution led by China. It has since expanded to over 100 members. Critics caution that the Chinese Communist Party (CCP) aims to wield global influence through the AIIB.

Canadian communications consultant Bob Pickard resigned from the AIIB in June 2023, citing warnings about the institution being under Beijing’s control. During his testimony before CACN on Dec. 11, 2023, Mr. Pickard highlighted that influential positions within the AIIB are held by CCP members, and senior management at the bank “often articulates Chinese government policy.” The bank has denied the allegations.