The already cold relationship between China and Canada is expected to get even colder, economists said after lawmakers in Ottawa on Tuesday gave the green light for the creation of a special committee to review ties with Beijing.
Canadian policymakers called on the country to back out from the China-led Asian Infrastructure Investment Bank. "Ties are already very icy," said Liang Yunxiang, Peking University's international affairs expert. "If Canada were to leave the AIIB, things would only get worse."
The decision to set up a 12-person committee to review Ottawa's dealings with Beijing followed a proposal from the opposition Conservative Party, which accused the Canadian leader of being too soft on the Asian powerhouse.
Nagging Pressure
The group, which is set to meet on January 20 for the first time, "will help shed light on the failures of Trudeau to stand up for Canadian interests over Beijing," foreign affairs spokesperson for the party Erin O'Toole said in a statement.
The Conservatives have called on Trudeau to scrap a proposed AIIB investment of C$250 million (US$ 189 million), which Canada joined in March 2018 despite protests from the U.S., expressing concern over the perceived lack of transparency of the bank and alleging that China would use it to extend its geopolitical influence.
Liang is persuaded that Washington has influenced the new developments in Ottawa. "The deteriorating relationship is clearly associated with the United States," he said.
As Washington has taken a more assertive stance towards Beijing, there has been an increase in anti-China sentiment in Ottawa.
Need To Chill
For his part, Trudeau emphasized the need not to escalate the conflict with China that has been in a tailspin since Meng Wanzhou, Chinese tech giant Huawei's chief financial officer was arrested on a US arrest warrant in December last year in Vancouver.
Only days later, Beijing arrested Canadian citizens Michael Kovrig and Michael Spavor, who is currently facing trial on espionage charges-and banned Canadian canola seed imports in March.
Liu Weidong, a specialist at the Chinese Academy of Social Sciences in U.S. affairs, said that despite suffering his first parliamentary setback since re-election, Trudeau was unlikely to give in to demands for him to take a tougher stance on China.
"I don't think Canada would leave the AIIB solely because of the opposition party's influence, while relations have been strained for about a year between the two countries," he said.
