Canada-China relations stalemate, says Finance Minister Bill Morneau

The persistent tension between the United States and China further complicates the situation. Canada is a close ally of the United States and has been accused by the Chinese state media of helping Washington humiliate Beijing.

Morneau, addressing CNBC's Nancy Hungerford on Saturday, said the US-China relationship was integral to how his country could progress with Beijing. But Washington and Beijing have ended the high-level talks and any progress between Canada and China seems stalled for the moment, he said.

"In general, what we can say very clearly, is that the idea of ​​putting people in jail for commercial reasons is completely inappropriate.We have no way of conducting business." long-term business – this has been clearly communicated, "said the minister at the G20 summit and ministerial meetings in Japan.

"I can not say that I necessarily have a sense of optimism because we are at a dead end, it's a difficult time," he added.

China's cancellation of canola shipments from Canada also makes no sense, according to Morneau, adding that he feared that Beijing could apply the same treatment to other products from Canada. his country.

"I do not want to speculate on what might be the next step, but we do not think that … stopping the canola trade is one that's made for reasons that make sense," he declared.

"And, of course, we are concerned about the specter of other products being delayed at the border or, in a way, withdrawn from trade relations," added the minister. "It's a real concern."