Illustration: Liu Xidan/GT

The latest labor force survey released by Statistics Canada has taken the market by surprise. Canada's employment jumped by 75,100 positions in July on strong gains in both the full-time and part-time sectors. The jobless rate fell for the third consecutive month, dipping from 6.5 percent to 6.4 percent, its lowest level in two years, according to Reuters.

The numbers far exceeded the expectations of analysts, who forecast roughly 20,000 new jobs, and reinforced the Bank of Canada's view that businesses are better responding to US trade restrictions.

The Bank of Canada said on July 15 that there were clear signs the economy was dealing better with the challenges posed by US tariffs and the uncertainty caused by the Middle East conflict.

This economic resilience is undoubtedly striking given the situation. For decades, Canada's economy has been heavily dependent on the US market, with exports to the US accounting for most of its total merchandise exports. Recently, the escalating US tariffs and protectionist trade measures have cast a lingering shadow over Canada's export-driven industries, especially in traditional competitive sectors such as softwood lumber, which has borne the brunt of US duties.

Despite widespread fears of pressure due to the shock caused by trade barriers erected by its largest trading partner, the labor figures for July suggested otherwise. Employment data is a critical barometer of overall economic performance. While domestic demand and sectoral adjustments have also played a role, an important share of this resilience can be attributed to Canada's steadily advancing trade diversification agenda. Exports to non‑US markets have been climbing, although slowly, and this diversification has opened up vital new growth potential for Canadian industries.

Since the start of this year, Canadian Prime Minister Mark Carney has undertaken multiple diplomatic visits across the Asia-Pacific region to expand external cooperation. A representative trip came in January when he made a visit to China. During that trip, cooperation documents were signed, which sent positive signals in the fields of the economy and trade, investment, finance, energy, and agriculture.

In June and July, British Columbia Premier David Eby led a trade mission to China to strengthen commercial ties as part of an effort to diversify trade away from the US, according to a press release from the British Columbia government.

The latest trade statistics confirm that these efforts are already paying off. In the first seven months of this year, Canada's exports to China surged by a remarkable 29 percent year-on-year, according to Chinese customs data. 

Take the lumber sector as an example. In the first half of 2026, China imported 1.249 million cubic meters of lumber from Canada, up 10.8 percent year-on-year, and the value jumped 21.6 percent to $294 million, according to data from chinatimber.org. Notably, this strong growth was achieved against a backdrop of an 8 percent overall contraction in China's total lumber imports, making Canada one of the few lumber suppliers to secure positive growth in the Chinese market. These export gains translate directly into sustained production, operations, and ultimately, jobs.

From lumber to agricultural products, and from energy resources to mineral commodities, Canadian industries across the board are reaping tangible commercial returns from China's massive domestic consumer market. More importantly, the incremental demand coming from the Chinese market is emerging as a new source of momentum that is shoring up domestic Canadian industries and underpinning employment.

Yet, for all these benefits, Western media outlets have repeatedly hyped narratives ranging from the so-called "China shock" to alleged "risks of trading with China," creating the false impression that engaging in trade with China can only bring harm to local industries and trigger job losses. What has received far less attention is the actual story: Canada's robust export growth to China, alongside a strengthening labor market. This asymmetry in coverage exposes a clear bias in the West.

The facts are becoming impossible to ignore. While protectionist measures have been on the rise in some economies, China is pressing ahead with high-level opening-up, leveraging its vast domestic market to offer cooperative dividends to the world. While some Western media outlets cling to outdated narratives blaming China for domestic employment pressures, Canada's 29 percent export growth to China and strong jobs numbers have shown that the so-called "risks of trading with China" are unfounded.

In an increasingly volatile global economic environment, embracing open and inclusive cooperation remains the most reliable path for countries to stabilize their industries and safeguard employment.