VANCOUVER—Canada must reset its approach to mainland China and take a tough stance against Beijing for its attacks on the Canadian economy and detention of Canadians, says a former senior bureaucrat and enthusiast of the relationship between the two countries.

In a paper for the Macdonald-Laurier Institute titled “Dragon at the Door” Margaret McCuaig-Johnston argues China’s hostile measures against Canada after the arrest of Huawei CFO Meng Wanzhou in Vancouver were a “turning point” in her assessment of relations between the two countries.

“I was just flabbergasted that China, who is supposed to be our friend, would kidnap a fellow Canadian in very disproportionate retaliation for the legal arrest of a single Huawei executive,” McCuaig-Johnston said in an interview. “I think it’s more powerful for China to hear very long-time friends of China say this behaviour is unacceptable.”

Meng was arrested at the request of the United States and now plans to fight extradition proceedings to that country, where she faces fraud allegations. The arrest sparked retaliatory measures from Beijing, including now lifted sanctions on Canadian meat.

But Canada could take retaliatory measures of its own, McCuaig-Johnston said.

She suggests Canada implement outright bans on real estate sales to foreign buyers from China and a ban on China’s Winter Olympic athletes from training in Canada. She also suggested that Canada not hold any events celebrating Canada’s 50th anniversary of recognizing China and send home China’s pandas from the Calgary Zoo early.

She said Canada must also search to expand markets in other Asian nations.

McCuaig-Johnston is a former vice-president of the Canada-China Friendship Society, which aims to build ties and understanding between China and Canada. She is also a senior bureaucrat with many roles in the federal government, including the Privy Council.

She said that given China’s detention of Canadians Michael Spavor and Michael Kovrig and the execution court rulings for Robert Schellenberg and Fan Wei for drug convictions, Ottawa must begin fighting back.

Her paper also argues Canada should consider withdrawing from China’s Asian Infrastructure Investment Bank and introduce legislation similar to Australia’s, meant to stem attempts by Beijing to influence Canada’s Chinese diaspora and politics.

“China’s interference in Western political systems is concerning,” reads the paper. “In Canada it can have the effect of bringing the allegiance of Chinese-Canadians more broadly into question, making them very real victims of the United Front Department campaign for influence in Canada.”

If China moves to charge Spavor, a China-based businessman, and Kovrig, a Canadian diplomat on leave, with espionage-related crimes Canada should consider using its Magnitsky legislation against Chinese officials, she said. The act enables Canada to impose sanctions against specific human rights abusers in foreign countries.

Conservative foreign affairs critic Erin O’Toole agrees with the suggestion. He said Canada must take a “stronger” stance against China’s conduct and the threat of action against Chinese officials themselves may provide appropriate pressure.

“I think at this stage that’s something that should be on the table, not necessarily implemented, but to show that detention of our people in sort of a diplomatic tit-for-tat is not something worthy of an important world power like China,” O’Toole told the Star. “The threat of the sanction, I think, would be the first step.”

If Ottawa continues to “roll over” it will encourage further attacks by China against Canada’s economy, he said, adding that a pragmatic and principled approach to China is needed.

The Liberal government was too tentative in its relations with China when the Meng story broke last year and it cost them, he said. “Other countries put their own national interests first and play hardball.”

But McCuaig-Johnston isn’t just concerned about Beijing’s actions against Canada. She said oppression of Muslim Uighurs in China’s western Xinjiang province, its aggressive actions toward Taiwan and debt traps for developing nations also show that some push back against mainland China is required.

Amnesty International has repeatedly condemned Beijing’s human rights record, such as the detention of Uighur minority members.

Last week, the New York Times published leaked documents of speeches and other communications by Chinese officials detailing how they orchestrated a “no mercy” approach to the mass detentions.

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McCuaig-Johnston cites these issues that show Canada’s past approach to China must be change. She’s optimistic the Canadian government will take a tougher line.

“I’ve had very good discussion with many people across the Canadian government about my concerns on these issues and I know that my points are landing with them,” she said.

Meanwhile, O’Toole said he expects Canada-China relations to be a key issue in the next session of Parliament.

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