Asia: A Land of Opportunity
November 05, 2025
Between the rise of protectionist policies, tariff wars and mounting geopolitical tensions, Canada is looking to redefine its position in global markets. And all eyes are on Asia in this regard. Asia is the indisputable driver of economic growth these days. What remains to be seen, however, is whether Canada can seize this opportunity. And if so, what will it take?
For Professor Ari Van Assche from HEC Montréal’s Department of International Business and Co-Director of the International Institute of Economic Diplomacy (IIED), the shift to Asia is inevitable. “In Canada, and in Quebec for that matter, turning to Asia is no longer an option. It’s a strategic imperative,” he said.
These thoughts kicked off a recent Rendez-vous ED x IIDE entitled “Trade Tensions: Pivoting to Asia, But Under What Conditions?” on October 1, 2025. Presented jointly by the IIED and Executive Education HEC Montréal, the event brought together an impressive group of experts, business executives and former representatives of Quebec in Asia who debated how to make the most of economic opportunities in Asia while still taking the corresponding risks into account. The following speakers weighed in on this critical question:
- Mélanie Raymond, Acting Chief Economist and Director General of International Economic Relations, Global Affairs Canada
- Marie-Eve Jean, Vice-President, Exports, Investissement Québec International
- Jean-Pierre Ferrandez, Founder and Chief Executive Officer, Indyeva
- Marc Leclair, President and Chief Executive Officer, St. Johns Packaging
- Alexandre Bohbot, Vice-President, Merchandising, Dollarama
- Jean-François Lépine, former representative of Quebec in China, and President and CEO, Solix Globe
New frontiers
Canada already has 15 free trade agreements in place, giving it access to 51 markets and 1.5 billion consumers. Efforts are ongoing to reach out to other countries. The recently signed agreement with Indonesia is an excellent example. This economic partnership agreement, which should take effect by the end of 2025, will let Canadian businesses connect with 280 million more consumers, according to Global Affairs Canada’s Mélanie Raymond.
Canada is also part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) alongside the likes of the United Kingdom, Mexico and seven Asian nations. Between 2018, the year the CPTPP came into force, and 2024, trade between Canada and Asian member countries grew to $63.5 billion. There is still enough leeway for Canada to forge new trade alliances, explained Raymond: some of the CPTPP tariff preferences have yet to be fully utilized.
She urged business leaders to pay close attention to the talks currently underway between Ottawa and the Association of Southeast Asian Nations (ASEAN) concerning a potential new trade deal. “We hope that these negotiations, which began in 2021, will wrap up by the end of the year.” A deal would open up five new markets, namely the Philippines, Thailand, Laos, Myanmar and Cambodia.
The Asian market: Filled with challenges, rife with opportunities
Between low-cost raw materials, an abundant supply of labour and access to innovation, Asia’s appeal is clear. “China is Quebec’s second-largest trading partner after the U.S., even with all the political tensions and geopolitical conflicts,” said Marie-Eve Jean, Vice-President, Exports, Investissement Québec International.
And more than 200 Quebec companies, including St. Johns Packaging, have operations in Asia. “Some 40% to 50% of our production is in Asia, 99% of which is aimed at export markets such as Australia, New Zealand, Europe, the U.S. and the rest of Canada ,” mentioned the company’s CEO, Marc Leclair.
The availability of labour and low production costs are initially what drew the company to China in 2005. They opened a second plant in Vietnam a decade later. “The teams we have in place make sure everything that’s under our control goes smoothly,” he said. “But the hidden costs and unending government audits in China make matters complicated. It’s much simpler in Vietnam.”
There’s also another challenge to consider: some customers — especially those in Australia, New Zealand and the U.S. — are now turning their backs on anything made in China, even at a competitive price point. In an effort to mitigate risks like this, the packaging products manufacturer went first to Vietnam and then to Mexico to get new plants running. They also have production operations in Canada, the U.S. and England. “Now we’re looking at Eastern Europe,” he said. “The goal continues to be operational diversification.”
Ahead of the curve
As for Montreal-based Indyeva, a brand specializing in outdoor clothing for women, they decided to centralize production in Asia to take advantage of the advanced technologies available there. And they are far from the only fashion brand to do so, said Jean-Pierre Ferrandez, Founder and Chief Executive Officer. “So we have access to the same equipment they do, much of which is simply not available in Canada. It means the quality and durability of our products is assured over the long run.” He did stress, however, than 75% of their production costs continue to be incurred in Canada.
“In Asia, what you get can be really good, or really bad,” he said. “All of our factories are certified, because the ethical side of the equation is very important to us. But if we nudge the prices too far upward, our suppliers will turn to other subcontractors who don’t have this certification,” he warned. During the trade war between Washington and Beijing, Indyeva opted to absorb the duties imposed by the U.S. rather than pass the corresponding hikes along to their suppliers. “Workers are the poorest part of the supply chain. They shouldn’t be the ones to foot the bill,” he said.
The innovation of Chinese suppliers also won over Dollarama. A significant proportion of their merchandise is sourced there. “They had walls and walls of items you can’t find anywhere else — and they keep making more. They’re way better than any of their rivals,” said Alexandre Bohbot, Dollarama’s Vice-President, Merchandising. This is a considerable advantage for the Canadian retailer, especially considering that they refresh 30% of their offering every year.
It’s an approach that nevertheless requires careful intellectual property management during the procurement process, given the rampant counterfeiting in China. “Our buyers are very aware of these issues,” he said. The logistical challenges are also complex. “Our goods are made in many different parts of China. Every container has to be packed as compactly as possible, and that takes lots of time and lots of resources.”
For Bohbot, having a long-term vision is key to success. “We see our suppliers as partners. They’re not just manufacturers. We’ve been working with 10 of the biggest manufacturers in the country for over 15 years. This kind of stability helps the supply chain move smoothly and provides a competitive edge, especially in times of uncertainty.” Ferrandez and Leclair agreed, adding that staying on top of fast-changing geopolitical situations around the globe is a must.
Navigating world events
Global logistics and geopolitical shifts can represent very real challenges, more so than cultural differences, said Jean-François Lépine, former representative of Quebec in China, and President and CEO, Solix Globe. The sources of tension are manifold: Beijing’s threats to invade Taiwan, the Trump administration’s trade wars, India’s withdrawal from free trade talks with Canada for diplomatic reasons… knowing how to interpret these political issues is crucial.
“Government representatives and chambers of commerce are very useful in gleaning insight into what’s happening, so they definitely come in handy — even when we think we don’t need them,” he said. The immense economic potential in Asia only confirms this, he said. Asia is home to some of the world’s most influential economic powers — China, Japan and India — not to mention emerging players such as South Korea, Bangladesh and Pakistan, and the cultural and economic diversity they bring to the table.
The opportunities for businesses are many and varied, although it takes commitment and teamwork to bring them to life. But Quebec’s presence in China has declined, and connections — like the ones between Montreal and Shanghai — remain underutilized. “In the coming decades, the global economy will grow at breakneck speed, at a pace we’ve never seen before. We can’t fail,” said Lépine. Hence the importance of getting Quebec businesses to diversify their markets by turning to Asia and supporting them in their efforts.
This Rendez-vous ED x IIDE was made possible through the support of Global Affairs Canada, the Caisse de dépôt et placement du Québec, Investissement Québec and the Montreal Council on Foreign Relations.
➲ Learn more about our upcoming eventss.