I. Review of the Bilateral Political Relations


Since the establishment of diplomatic relations between China and Canada on October 13, 1970, the bilateral relations have witnessed significant developments. The President, Premier，Chairman of the Standing Committee of the National People's Congress of China(NPC) and Chairman of the National Committee of the Chinese People’s Political Consultative Conference(CPPCC) all visited Canada respectively. The Governor General, Prime Minister and Speakers of the Senate and the House of Commons of Canada also paid visits to China.


The two-way high-level visits in the 1970s and 1980s include:


In October 1973, the Rt. Hon. Pierre Elliott TRUDEAU, Prime Minister of Canada, visited China and this was the first visit to China by the Prime Minister of Canada after the establishment of diplomatic relations between the two countries. Premier ZHOU Enlai held talks with him and Chairman MAO Zedong met with him. The two sides signed the Trade Agreement between the Government of the People's Republic of China and the Government of Canada.


In June 1978, Mr. JI Pengfei, Vice Chairman of the Standing Committee of the National People's Congress of China, headed a NPC delegation to Canada.


In September 1979, the Hon. Louise Marguerite Renaude LAPOINT, Speaker of the Senate, and the Hon. Alexander James JEROME, Speaker of the House of Commons, headed a Canadian parliamentary delegation to China.


In August 1980, Mr. BO Yibo, Vice Premier of the State Council of China paid a visit to Canada and met with Prime Minister TRUDEAU. They focused on the bilateral economic and trade relations in their talks.


In October 1983, Mr. WU Xueqian, State Councilor and Foreign Minister of China, visited Canada. The two sides signed the General Agreement on Development Cooperation between the Government of the People's Republic of China and the Government of Canada.


In November 1983, the Rt. Hon. Pierre Elliott TRUDEAU, Prime Minister of Canada, made a working visit to China and held talks with the Chinese leaders on international relations.


In January 1984, Mr. ZHAO Zhiyang, Premier of the State Council of China, paid an official visit to Canada.


In April 1984, the Hon. Maurice RIEL, Speaker of the Senate, and Hon. Cyril Lloyd FRANCIS, Speaker of the House of Commons, headed a Canadian parliamentary delegation to China.


In July 1985, Mr. LI Xiannian, President of China, made a state visit to Canada, the first one by the President of China to Canada after the establishment of diplomatic relations between the countries. President LI Xiannian met with Governor General Jeanne SAUVE and Prime Minister Martin Brian MULRONEY and held talks with them.


In May 1986, the Rt. Hon. Martin Brian MULRONEY, Prime Minister of Canada, visited China. The two sides signed the Agreement Between the Government of the People's Republic of China and the Government of Canada for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income.


In May 1986, Mr. YAO Yilin, Vice Premier of the State Council of China, made an informal visit to Canada.


In March 1987, the Rt. Hon. Jeanne SAUVE, Governor General of Canada, visited China and met with President LI Xiannian of China.


In April 1987, the Hon. Guy CHARBONNEAU, Speaker of the Senate, and the Hon. John Allen FRASER, Speaker of the House of Commons, headed a Canadian parliamentary delegation to China. President LI Xiannian and Chairman PENG Zhen of the Standing Committee of NPC met with them respectively.


In May 1987, Mr. YANG Shangkun, Vice Chairman of the Central Military Commission of China, headed a Chinese Government delegation to Canada and met with Prime Minister MULRONEY and Foreign Minister CLARK.


In May 1888, Mr. TIAN Jiyun, Vice Premier of the State Council of China, visited Canada and met with Governor General Jeanne SAUVE, Prime Minister Brian MULRONEY, Deputy Prime Minister Donald Frank MAZANKOWSKI and the Speakers of the Senate and the House of Commons.


In May 1989, Mr. WAN Li, Chairman of the Standing Committee of the National People's Congress of China, headed a NPC delegation to Canada. It was the very first visit to Canada by the Chairman of NPC of China. Chairman WAN Li met and held talks with Governor General Jeanne SAUVE, Prime Minister Brian MULRONEY, Speaker Guy CHARBONNEAU of the Senate and Speaker John Allen FRASER of the House of Commons.


The major visits in the 1990s include:


In May 1993, Mr. ZHU Rongji, Vice Premier of China visited Canada.


In April 1994, the Rt. Hon. Ramon J. HNATYSHYN, Governor General of Canada, visited China. During the same month, Mr. ZOU Jiahua, Vice Premier of China, visited Canada. In November, the Rt. Hon. Jean Joseph Jacques CHRETIEN, Prime Minister of Canada, led "Team Canada" to China.


In October 1995, Mr. LI Peng, Premier of China, visited Canada on the occasion of the 25th anniversary of the establishment of diplomatic relations between China and Canada.


In April 1996, Mr. QIAO Shi, Chairman of the Standing Committee of the National People's Congress of China, visited Canada. In September, Mr. QIAN Qichen, Vice Premier and Foreign Minister of China, visited Canada. In October, the Hon. Gildas L. MOLGAT, Speaker of the Senate of Canada, visited China. In November, the Rt. Hon. Jean Joseph Jacques CHRETIEN, Prime Minister of Canada, made a working visit to China and met with Premier LI Peng.


In April 1997, the Hon. Lloyd AXWORTHY, Minister of Foreign Affairs of Canada, Visited China. In July, he observed the handing over ceremony of Hong Kong at the invitation of the Chinese Government. In November 1997, Mr. JIANG Zemin, President of China, paid a state visit to Canada at the invitation of Canadian Governor General Romeo LEBLANC after attending the APEC Informal Leadership Meeting in Vancouver. This was the first visit to Canada by the President of China since 1985. During the visit, President JIANG met with Governor General LEBLANC, Prime Minister Jean CHRETIEN and Speakers of both the Senate and the House of Commons. He had an in-depth exchange of views with Canadian leaders on bilateral relations and other international and regional issues of common interest. Both sides reached broad understanding. The two sides agreed to build the 21st century-oriented China-Canada partnership of all-round cooperation. Besides Ottawa, the capital of Canada, President JIANG also visited Calgary and Toronto and made an important speech at the dinner hosted by the Canada-China Business Council in Toronto. The visit further promoted the bilateral economic and trade cooperation. The two sides also signed many agreements during the visit: the Consular Agreement between the two governments, the MOU of Cooperation in Tourism between the National Bureau of Tourism of China and the Tourism Committee of Canada, and three MOUs on development aid and the exchange of notes on increasing the number of consulate-general. The visit achieved the purpose of deepening understanding, enhancing friendship, facing future challenges together and expanding cooperation and laid a firm foundation for the stable, friendly and cooperative bilateral relations in the 21st century.


In January 1998, Mr. CHEN Junsheng and Madame PENG Peiyun, State Councilors of China, visited Canada respectively. In September, Mr. TANG Jiaxun, Foreign Minister of China, visited Canada. In October, Mr. LI Tieying, Member of the Political Bureau and President of the Academy of Social Sciences of China, visited Canada. In November, the Rt. Hon. Jean CHRETIEN, Prime Minister of Canada, paid his third visit to China as the Canadian Prime Minister after attending the APEC Informal Leadership Meeting.


In April 1999, Mr. ZHU Rongji, Chinese Premier, paid an official visit to Canada at the invitation of Canadian Prime Minister Jean CHRETIEN. Besides Ottawa, Premier ZHU visited Saint John's, Toronto, Calgary, Victoria and Vancouver. He met with Canadian Governor General, Prime Minister, Speakers of the Senate and the House of Commons, several federal ministers and provincial and local officials. During their talk, the two prime ministers spoke highly of the current bilateral relations and agreed to strengthen cooperation between the two countries' legislative bodies and provincial and municipal governments on environmental protection and judicial reform, and also agreed to further strengthen consultation and cooperation in the United Nations. The two sides signed the Environmental Cooperation Action Plan, MOU on Cooperation in Combating Crime and three Protocols on Quarantine and Health Requirements. Premier ZHU also delivered a speech at the dinner hosted by Canada-China Business Council. This visit achieved the purpose of deepening understanding, increasing identical views, strengthening friendship and expanding cooperation. Premier ZHU Rongji's visit was crowned with success. In October, Mr. JIA Qinglin, Member of the Political Bureau of China and Secretary of Beijing Municipal Party Committee of the Communist Party of China, visited Canada. In December, the Hon. Raymond CHEN, Secretary of State for Asia Pacific of Canada, attended the handing over ceremony of Macao on behalf of the Canadian Government.


In May 2000, His Excellency LI Ruihuan, Chairman of the National Committee of CPPCC, visited Canada at the invitation of Speaker Gildas L. MOLGAT of the Senate of Canada. Mr. LI met with Governor General Adrienne CLARKSON, Prime Minister Jean CHRIETIEN, Speaker Gildas L. MOLGAT of the Senate and Speaker Gilbert PARENT of the House of Commons. Besides Ottawa, Mr. LI visited Toronto, Victoria and Vancouver. In June, the Rt. Hon.Beverley McLachlin, Chief Justice of the Supreme Court of Canada, visited China. In July 1997, the Hon. Lloyd AXWORTHY, Minister of Foreign Affairs of Canada, Visited China.



II. Bilateral Trade Relations and Economic & Technological Cooperation


There had been non-governmental trade between the two countries since the 1950s. Formal trade relations between them began in 1961 when China and Canada signed the agreement on wheat. Ever since the establishment of diplomatic relations between the two countries in 1970 and the signing of the Trade Agreement Between the Government of the People's Republic of China and the Government of Canada in 1973, the economic and trade relations between China and Canada had been developing smoothly. The friendly cooperation between them had kept a good momentum. In recent years, the bilateral economic and trade relations have been developing rapidly, the trade pattern between the two has turned from a unitary commodity trade into an all-round, multi-dimensional and comprehensive one. The economic ties have deepened with increasing flows of commodity, service, capital and personnel. In November 1999, China and Canada signed the bilateral agreement on China's accession to WTO.


According to the statistics of Chinese customs, the two-way trade volume between China and Canada was US$6.909 billion in 2000, an increase of 44.9% over that of 1999. China's export to Canada was US$3.158 billion and its import from Canada was US$3.751 billion last year, an increase of 29.8% and 60.7% over the year before respectively. In terms of trade volume, China was Canada's 4th largest trading partner in 1999 and Canada was China's 10th largest one (EU and ASEAN are counted as one identity respectively). In terms of commodity composition, China's major import items from Canada include mechanical and electrical products, grain, fertilizer, paper pulp, and paper. China's major export items to Canada include mechanical and electrical products, garments, textile, shoes, plastic products, toys and suitcases. The composition of China's export goods to Canada has further improved.


Canada's direct investment in China began in 1980. In the first 10 months of 2000, the number of Canada's new investment projects in China was 335. The negotiated investment amount was US$700 million, among which the realized amount of investment wasUS$200 million. By the end of October of 2000, the accumulated number of direct Canadian investment projects in China approved by the Chinese side reached 4,663. The negotiated investment amount on the Canadian side was US$7.741billion, with US$2.257 billion realized. The Canadian projects are located in over 20 provinces, municipalities and autonomous regions, including Guangdong, shanghai, Jiangsu, Fujian, Shangdong, Hebei, Beijing, Shaanxi, Anhui, Xinjiang, Hainan, etc. The main sectors of Canadian investment include: oil exploitation, machinery, electronics, telecommunications, chemicals, light industry, food, textile, agriculture, aquatic farming, real estate, financial insurance, etc. Manufacturing projects account for 80% of the total. From 1983 to the end of 1999, the Chinese Government had altogether approved 126 enterprises of Chinese investment in Canada with a negotiated investment amount of US$33.5 million. In the first 11 months of 2000, the Chinese side approved 9 new enterprises of Chinese investment in Canada. The negotiated investment amount from both sides for the 9 new enterprises was US$ 32.96 million, among which the negotiated Chinese investment amount was US$31.85 million. The sectors of Chinese investment in Canada mainly include resource exploitation, industrial manufacturing, construction contracting, animal husbandry and fishery, food service, scientific and cultural exchange, transportation and consultancy.


The development cooperation between the two governments began in 1982. The General Agreement of Development Cooperation between China and Canada was signed in 1983. The current development cooperation between the two sides covers 84 projects in the fields of farming, forestation, energy, transportation, education, telecommunication, environmental protection, human resource development, economic system reform and poverty alleviation. The negotiated investment amount on the Canadian side was C$560 million.



Bilateral Exchanges and Cooperation in the Fields of Science, Technology, Culture, Education, Health and Military


A. Scientific and Technological Cooperation


The scientific and technological cooperation between the Chinese Government and the Canadian Government began in 1972. At present, the governmental departments between the two countries have signed 25 agreements or MOUs on scientific, economic and technological cooperation. In recent years, the major fields of cooperation include:


a. Energy: In 1994, China and Canada signed the agreement on the peaceful use of nuclear energy in Beijing. In 1995, both sides signed the MOU on the construction of the Qinshan CANDU nuclear power plant. The signing of the Qinshan nuclear power plant export credit agreement in 1997 marked the beginning of the biggest cooperation project between China and Canada.


In 1997, the Ministry of Water Resources of China and the Ministry of Natural Resources of Canada signed the MOU on cooperation.


b. Agriculture: In 1998, the Ministry of Foreign Trade and Economic Cooperation and the Canadian International Development Agency signed *the MOU on the Sustainable Development of Agricultural Nutrition Management and Strategic Project of China. During the same year, the State Forestry Administration of China and the Department of Natural Resources of Canada signed the MOU on Cooperation in the Field of Forestry.


c. Environmental Protection: In 1998 and 1999, China and Canada signed the Framework Statement for Cooperation on Environment into the 21st Century and Environmental Cooperation Action Plan respectively.


Besides, the two countries have also cooperation in space technology, remote sensing, telecommunications, meteorology, seas and oceans, fishery, forestry and some other basic sciences. The universities and academic research institutions of the two countries have also conducted exchange and cooperation at multiple levels through various channels.


B. Cultural Exchange:


After the establishment of diplomatic relations between the two countries, the official and non-governmental cultural exchanges were strengthened. In the 1980s, such exchanges increased gradually, covering many fields such as culture, arts, movies and television programs, book publishing, social sciences and sports. The visits of performing groups from both sides and the exhibitions of cultural relics and arts were more frequent than before.


Since the beginning of 1990s, the cultural exchanges between the two countries have been growing at a faster pace. In 1992, the Canadian cultural officials visited China and reached an agreement with the Ministry of Culture on the governmental cultural exchange programs from 1992 to 1993. In 1994, the memorandum of cultural exchange for the period of 1995-1996 was signed. In 1998, the two sides signed the new MOU on cultural exchange and cooperation. In November 1998, the State Administration of Cultural Heritage of China and the Canadian Foundation for the Protection of Chinese Cultural and Historical Treasures signed the Agreement on Preservation of Cultural Heritage. In the most recent few years, the cultural exchanges between the two countries have been rather active with the development of the bilateral political and economic relations. There are also breakthroughs in the cooperative methods as well as improvement in the artistic level of cultural exchange programs. At present, there are about 80 cultural exchange programs between China and Canada each year.


C. Educational and Health Exchange and Cooperation


Since 1970, China and Canada have made comprehensive and rapid progress on the exchange of education. The educational departments of the two countries, especially the institutions of higher learning, have built up exchanges and cooperation in various forms. The high-level academic exchanges are conducted in various fields with the participation of more personnel. Besides, the two sides have also exchanged academic delegations, teachers, students, information and materials, made cooperative researches, trained doctors jointly and co-sponsored academic seminars and training courses. As a result, the understanding between the educational departments and academic circles of the two countries was deepened, and the academic research capability and management skills of both sides were improved.


In 1995, a MOU on cooperation was signed between the health departments of the two countries and their cooperation in the field of health started. In 1997, the Ministry of Health of China and the Department of Health of Canada Signed the Action Plan on Cooperation in the Field of Health and Medicine for the period 1997-1999.


D. Military Exchange


China and Canada began to mutually accredit military attaches in 1973. In the 1980s, Vice Minister Mr. XIAO Ke and Minister ZHANG Aiping of National defense of China visited Canada respectively. Minister J. J. LAMONTAGNE and Chief of the Defense Staff General P. D. MANSON of the Department of National Defense of Canada also visited China respectively. In 1995, Deputy Chief of the Defense Staff Vice Admiral L. G. Mason visited China. In 1996, Deputy Chief of General Staff of the People's Liberation Army General QIAN Shugen paid a visit to Canada. In 1998, the Flotilla of the Canadian Navy visited Shanghai. In February 2000, Assistant Deputy Minister Calder from National Defense Canada visited China. In May, missile destroyer “HMCS Algonquin” and missile escort vessel “HMCS Winnipeg”, led by Rear Admiral Kenneth F. McMillan of the Canadian Fleet Pacific, paid a visit to Qingdao. In September, missile destroyer “Qingdao” and supporting vessel “Tai Cang” from the Chinese navy paid a four-day good-will visit to Canada.





Major Agreements


1. Joint Communique of the Government of the People's Republic of China and the Government of Canada Concerning the Establishment of diplomatic Relations Between China and Canada(October 13 , 1970)


2. Civil Air Transport Agreement Between the Government of the People's Republic of China and the Government of Canada (June 11, 1973)


3. Trade Agreement Between the Government of the People's Republic of China and the Government of Canada (October 13, 1973)


4. Protocol on the Economic Cooperation Between the Government of the People's Republic of China and the Government of Canada(October 19,1979)


5. General Agreement on Development Cooperation Between the Government of the People's Republic of China and the Government of Canada (October 5, 1983)


6. Agreement on Investment and Insurance Between the Government of the People's Republic of China and the Government of Canada (January 18, 1984)


7. Agreement Between the Government of the People's Republic of China and the Government of Canada for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income(May 12,1986)


8. Memorandum of Understanding on Cultural Exchange Between the Government of the People's Republic of China and the Government of Canada (November 4, 1988)


9. Treaty on Criminal Justice Assistance Between the Government of the People's Republic of China and the Government of Canada (July 29, 1994)


10. Agreement Between the Government of the People's Republic of China and the Government of Canada for Cooperation in the Peaceful Uses of Nuclear Energy (November 7,1994)


11. Exchange of Note Between the Government of the People's Republic of China and the Government of Canada Regarding the Maintenance of the Canadian Consulate General in the Hong Kong Special Administrative Region of the People's Republic of China (September 19, 1996)


12. Agreement on the Maritime Transport Between the Government of the People's Republic of China and the Government of Canada (April 4, 1997)


13. Consular Agreement Between the Government of the People's Republic of China and the Government of Canada (November 28, 1997)


14. Framework Statement for Cooperation on Environment into the 21st Century Between the Government of the People's Republic of China and the Government of Canada (November 19,1998)


15. Environmental Cooperation Action Plan Between the Government of the People's Republic of China and the
                  Government of Canada (April 16, 1999)


16. Memorandum of Understanding Between the Government of
        the People's Republic of China and the Government of
     Canada on Cooperation in Combating Crime (April 16, 1999)


P.S. Joint Communique of the Government of the People's
Republic of China and the Government of Canada
Concerning the Establishment of Diplomatic
Relations Between China and Canada

The Government of the People's Republic of China and the Government of Canada, in accordance with the principles of mutual respect for sovereignty and territorial integrity, non- interference in each other's internal affairs and equality and mutual benefit, have decided upon mutual recognition and the establishment of diplomatic relations, effective October 13, 1970.
T
he Chinese Government reaffirms that Taiwan is an inalienable part of the territory of the People's Republic of China. The Canadian Government takes note of this position of the Chinese Government.

The Canadian Government recognizes the Government of the People's Republic of China as the sole legal Government of China.

The Chinese Government and the Canadian Government have agreed to exchange ambassadors within six months, and to provide all necessary assistance for the establishment and the performance of the functions of diplomatic missions in their respective capitals on the basis of equality and mutual benefit and in accordance with international practice.