#canada-china-relations

Tensions in the South China Sea have reached a boiling point as Chinese vessels repeatedly use aggressive tactics against Philippine ships in disputed waters. These actions defy a 2016 international ruling and directly challenge the rules-based order. For Canada, the escalating conflict is a critical test of its Indo-Pacific Strategy, which commits to upholding international law and ensuring regional stability. Ottawa has condemned Beijing's behaviour and deployed naval assets to the region, but the crisis forces Canada to navigate complex diplomatic, security, and economic pressures in a volatile global flashpoint.

The Government of Canada has announced new, targeted export controls on specific semiconductor technologies, aiming to safeguard national security and prevent critical innovations from being used by foreign states for military or intelligence purposes. The measures, effective immediately, align Canada with key allies, particularly the United States, in restricting the flow of advanced chip-related goods and intellectual property to countries of concern. This policy shift reflects a broader G7 strategy to de-risk supply chains and counter coercive economic practices, impacting Canadian tech firms who must now navigate stricter compliance regimes.