Canada Should Aid China-Reliant Nations to Mitigate Economic Coercion Risks: Ambassador

Ian McKay, ambassador of Canada to Japan and special envoy for the Indo-Pacific, speaks to media in Jakarta, Indonesia, on Sept. 5, 2023. The Canadian Press/Sean Kilpatrick

Canada’s ambassador to Japan is calling for forging stronger ties with China-dependent nations in the Indo-Pacific as part of Ottawa’s strategy to counter Beijing’s economic coercion.

“There are issues where Canada needs to challenge China,” Ian McKay said while testifying before the House of Commons Special Committee on the Canada–People’s Republic of China Relationship on Nov. 27. He highlighted Canada’s commitment to address Beijing’s economic coercion, as outlined in its Indo-Pacific Strategy, by diversifying economic integration with other allies in the region.

He pointed out that some smaller countries in the Indo-Pacific region, whose economic reliance is “significantly overweight to China,” are susceptible to “opportunities for coercion to take place.”

“In that context, it’s very important for Canada to have deeper, more integrated economic relationships with partner countries throughout the region,” he said.

The ambassador was testifying on the effectiveness of Canada’s Indo-Pacific Strategy on the one-year anniversary of the policy’s implementation. Unveiled on Nov. 27, 2022, the strategy placed significant focus on addressing Beijing’s ambitions to become a dominant power in the region.

Mr. McKay noted that the emergence of China as a significant economic and military power, along with the global economic shift, are driving forces that have led Canada to pivot its economic policies toward that region.

“We’re not there as an episodic interloper in the region, but as a long-term, strategic partner that will benefit ... all of Canada,” he said.

Responses

Upon unveiling its Indo-Pacific Strategy, Canada labeled China as the most “disruptive global power” and pledged to confront it.

When asked about Beijing’s response, Mr. McKay said Canada’s Indo-Pacific Strategy has limited impact on advancing dialogue with the authoritarian state, which has shown minimal attention to the policy.

“I'll be as clear as I can be in terms of China’s response. They’re not spending a whole lot of attention, a lot of time thinking about our Indo-Pacific Strategy,” he said.

“I don’t think it has enhanced our dialogues going forward, but at the same time, I don’t think it has hindered our dialogues going forward.”

The ambassador still expressed confidence in the policy, highlighting its effectiveness in facilitating Canada’s partnerships with other allies in the region on trade and people-to-people relationships.

“This is something that I think will have extraordinarily positive benefits long term for Canada, and it will require a lot of work and a lot of heavy lifting. But I’m confident that the framework that is set out will allow us to build a generation of Indo-Pacific experts in academia, in business, in politics, and in culture through the deployment of this strategy.”

HMCS Montreal is seen in Halifax Harbour while departing for the Indo-Pacific region on Operation Projection in Halifax on March 26, 2023. The Canadian Press/Darren Calabrese

As part of its effort to bolster its presence in the Indo-Pacific region, Canada has also enhanced ties with allies in Southeast Asia, upgrading its status to strategic partners with the Association of Southeast Asian Nations during the bloc’s summit in September.

Additionally, Mr. McKay, who was appointed Canadian ambassador to Japan in April 2021, noted that Canada’s increased military presence in the region has been well-received by allies such as Japan and the United States.

“I think it’s important to underline that on the security piece, Canada’s deployment through the Canadian Forces, through our naval operations, and our Air Force operations—we’re doing more on the security piece by sending three frigates into the Taiwan Strait and into the South and East China Sea.”

“It certainly comes as a very, very welcomed initiative by our partners in the region,” he added.