McNeil hopes tensions between Canada and China are quickly resolved

As the fallout continues following the arrest earlier this month of a Chinese telecommunications executive in Vancouver, manyCanadians are watching the situation closely, including in Nova Scotia.

Huaweichief financial officerMeng Wanzhou, who is accused by the U.S. offraud and violating international sanctions against Iran,has since been released on bail as she awaits an extradition hearing.

But Canadians in industries across the country are wondering what the increased tensions could mean for their relationships with China, which had threatened "grave consequences" if Meng wasn't released and has detained two Canadians.

Nova Scotia is closely linked to China through trade.

Last month, the province signed an economic agreement withGuangdongprovince, and currently exports about $600 million worth of goods to China, mostly seafood like sea cucumber and lobster. Chinese students also make up about half of Nova Scotia's international student population.

Nova Scotia Premier Stephen McNeil spoke with CBC Information Morning hostPortia Clark about the impact of tensions on the bond between Nova Scotia and China.This interview has been edited for length and clarity.

How concerned are you, given the exports and given those relationships, about the tension between Canada and China right now?

Obviously we're concerned about it. It's our hope that this could be resolved as quickly as possible. But there's a rule of law that has to be followed, and making sure that it is being done appropriately, but as quickly as possible, to get our relationship back ... in the direction where it was headed about a month ago.

This issue, though, does again raise concerns for many Canadians about doing business with a communist country with a troublesome human rights record. What do you say to that.

There's no question there are challenges at times, but I think the most important thing is when we open ourselves up, we begin to understand each other.

We expose Chinese students to our way of life, what a democratic society can offer, showing them what happens outside, and they take back some of the things that are, that we hold dear the rule of law, the integration of ensuring that we respect each other. Those kinds of values we hope will be taken back into China and mixed into their society.

But I don't believe isolating them has ever worked. When you've seen our greatest successes has been when we actually engaged and shared why we believe the democratic way of governing, the democratic way of ruling a particular country or province, is the best way.

You were there as recently as November on a trade trip. How relieved are you that the timing has worked out that you're not there right now.

I've only ever been treated with respect. The first time I went in, I said this many times, it was about building a relationship. It was really for them to get to know me.

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Governor Ma of Guangdongprovince has been a tremendous supporter of [Nova Scotia]. He's worked very hard to ensure that we've had access to airlines, ensuring that seafood trade continues.

So I've had nothing but a wonderful experiences as we go into China and looking forward to the next time and continuing to grow that relationship for the province of Nova Scotia.

And given that you have relationships there, what have you heard, if anything, from your associates there that you've met on those trips?

Last week I was, actually had a Chinese associate that I had met in China ... who was in Halifax, and he was doing business here and came in to see me. So you know everyone is obviously concerned in both countries about where this is headed.

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We want to make sure that the rule of law is followed and that we respect each other's sovereign position. But how do we make sure that we get to a resolution as quickly as possible, so that what has been a growing relationship over the last five years continues to grow.