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Improving links with growing Asian economies, as a means of diversifying away from traditional trading partners such as the United States, has become the centrepiece of the Conservative government’s economic strategy.

Stephen Harper met with Chinese President Hu Jintao during the APEC summit in Russia over the weekend and Canada formally signed a Foreign Investment Promotion and Protection Agreement, aimed at giving Canadian businesses confidence that their legal rights in China will be respected.

The joint study suggested that a trade deal could benefit both nations, particularly in seven key sectors: agriculture, clean technology, machinery, natural resources, services, textiles and aerospace.

I’m not a Canadian who worries about foreigners buying into Canadian companies but I would like to see them behave like private companies and I would like to see some reciprocity

Peter Clark, president of trade consultants Grey, Clark, Shih and Associates, said he thinks exploratory talks are a good idea. “Harper wants to do it. And I was in China three to four weeks ago talking to senior Chinese people and they are very positive. They see the advantage to them of getting Canada on side on certain product sectors where they can’t get the U.S. onside.”

But, as the Prime Minister indicated before he flew to Russia, dealing with the Chinese is never quick nor easy. Australia has been engaged in similar talks since 2005. Mr. Harper said he wants to see “a clear two-way flow and clear benefits for both sides.”

For example, while Canada has been approved by the Chinese as a destination for institutional investment, by contrast, the Chinese market is largely closed to foreign portfolio investment.