Canadian Prime Minister Justin Trudeau has asserted that Canada will not be cowed by China's retaliation following the recent diplomatic expulsions between the two countries.

In response to Ottawa's expulsion of Chinese diplomat Zhao Wei on allegations of foreign interference, China asked a Canadian diplomat to leave Shanghai by May 13, citing "unreasonable actions" by the Canadian government.

Despite the retaliatory measures, Trudeau emphasized that Canada will take all necessary measures to safeguard its citizens from foreign interference.

Tensions have been high since the 2018 arrest of Huawei executive Meng Wanzhou and the following detainment of two Canadians on spying charges by Beijing.

Although all three were released in 2021, concerns have arisen over potential economic consequences for Canada. Chinese imports of Canadian goods reached a record high of C$100 billion ($74.8 billion) last year, and China is Canada's second-biggest trading partner, trailing only the United States.

Canada's largest crop, canola, had faced a three-year import ban from China that was only lifted in 2020 for trading companies Richardson International and Viterra. Additionally, China heavily imports Canadian potash and wheat.

According to former Canadian ambassador to China Guy Saint-Jacques, Beijing is currently conducting a charm offensive to attract foreign enterprises to invest in the country, as evidenced by the recent visits of Western leaders and outreach by Premier Li Qiang to corporate leaders.

Saint-Jacques believes that Beijing is unlikely to resort to economic sanctions against Canada due to the risk of sending a bad message to foreign companies at a time when China is trying to reassure them that the country is open for business.