Resolving Meng case removes giant thorn from Canada's business relationship with China

No matter how much political and popular outrage was stirred up by the Meng Wanzhou extradition case — both in Canada and in China — Canadian businesses simply could not afford to cut ties with what may be the world's largest economy.

After her case was resolved on Friday, experts on Canada's business ties with China said it will likely generate a sigh of relief from companies that do business with China.

Though, a final resolution, they said, would require a deal that freed Canadians Michael Spavor and Michael Kovrig, who had been languishing in Chinese prisons since shortly after Meng's arrest in late 2018. Late Friday night, Prime Minister Justin Trudeau announced the two were on their way home.

Despite the fact that business between the two countries continued during the trio of cases, the larger dispute stalled the development of new trade and business relations.

The arrest of the two Michaels for alleged espionage was widely seen as hostage diplomacy in retaliation for the house arrest of Meng, considered a high-flying aristocrat of China's business establishment. China has repeatedly insisted the Meng case was political manoeuvring by the U.S., with help from a complicit Canada.

Trade experts note the dispute has made doing business with China far more difficult. Prior to the Meng case, Canada and China had a relatively good trade relationship despite pressure from the U.S. to join it in banning the use of Chinese technology, notably Huawei's 5G telecom systems.

That pressure was seen by some experts as part of the U.S. government's growing technology cold war that seeks to boost support for U.S. companies at the expense of their Chinese competitors, whom members of Congress, later supported by the FBI, have accused of industrial espionage.