N.W.T. puts trade mission to China on hold as diplomatic tensions continue

The ongoing diplomatic dispute between Canada and China following the arrest of a top Chinese tech executive has caused the Northwest Territories government to put a trade mission to China on hold.

Northwest Territories Premier Bob McLeod spoke about the decision Thursday in the Legislative Assembly, after MLA Cory Vanthuyne questioned him about the relationship between the territory and China.

"The fact that a number of individuals were apprehended in China gives us pause to think," McLeod said. "We were planning a trade mission to China for this year, but we have since put it on the back burner waiting to see what happens."

McLeod referred to the detention of Michael Spavor and Michael Kovrig. The Canadians were separately taken into custody by Chinese officials in mid-December following the arrest of Huawei CFO Meng Wanzhou in Vancouver Dec. 1.

She is accused of misleading multinational banks about Huawei's control of a company operating in Iran, putting those banks at risk of violating U.S. sanctions.

• Follow the timeline of eventsafter Wanzhou's arrest

Wanzhou's arrest sparked immediate reaction from Chinese officials, who vocally criticized her apprehension, saying she was arrested"illegally."Since then, tensions have remained high, with the federal government issuing a travel warning for Canadians travelling to China.

Officials in the Northwest Territories have not had any directives from their counterparts in Ottawa regarding relations with China since Wanzhou's arrest, McLeod said.

Cabinet spokeswoman Charlotte Digness explained in an email that planning for the trip was in its early stages in 2018 before it was put on hold.

N.W.T. has long courted Chinese businesses

McLeodhasvisited China more than once over the past decade to market the territory's tourism, diamond and fur industries to businesses there.

During that time, Chinese tourists have increasingly become a key driver of the territory's tourism industry. More tourists come to the Northwest Territories from China than anywhere else in the world, according to the territory's Department ofInfrastructure, Tourism and Investment.

In 2017-18, more than 20,000 people from China visited the Northwest Territories, spending nearly $2,400 per person per visit, according to the territorial government.

That relationship appears to remain strong for now, McLeod said.

"I have not seen a decrease in [Chinese tourists], it could be a concern, the Chinese could see fit to revoke the designation of Canada as an approved nation status, but we haven't seen that yet," McLeod said.

"We continue marketing the Northwest Territories to Chinese tourists, I think we are prepared to look at further investment," he said.

McLeod said territorial officials remain in touch with their contacts in China and there is still a possibility for another trade mission there before the N.W.T.election in October.