Financial Implemented in early 2016 the Government of China has reformed its Fiscal and Monetary purposes to focus on 5 Key issues. 1) Create solutions to the overcapacity issue. 2) Cut costs to businesses and business formation.3) Stabilize the chaotic housing market. 4) Improve the Infrastructure decreasing traffic congestion.5) Prevent financial risks and reduce total property inventoryThe fiscal policy changes include more tax cuts and an increase to the amount of Foreign investment. The monetary policy changes will be more accommodating, it will cut the cost for business financing, increase financing to the infrastructure, and change the exchange rate regime improving upon policies made to devaluate Chinese currency. The currency used in China is called the Chinese Yuan (CNY) or Renminbi (RMB) translated to English it means the Peoples Currency. The current exchange rate between Canadas Dollar (CAD) and the Chinese Renminbi(RMB) is 1 CAD is equal to 5.10 RMB.Economic The estimated GDP of china is 9.24 trillion USD and the GDP per capita is 14,388 USD. The GNP of China is 16.08 trillion USD quickly approaching the United States who is projected at 16.99 trillion USD. China has an Inflation rate of 0.9% down from 2.5% in January with a low unemployment rate of 4.02% which has been maintained since 2015. The tax environment in China is classified between Individual and Corporate. Individual income is taxed progressively starting at 3% increasing all the way up to 45% based on the amount of income earned. The taxation for foreign and domestic Corporations is a standard rate of 25%. The Labour force of China consists of over 641 million people. China features a unique Socialist Market economy which is a blend of its previous communist roots, socialism, and with US capitalism. China is a World market supplier trading with all members of the G20. Its major trading partners include the United States (18% of total sales), Japan (6%), and South Korea (4.4%). China has many trade agreements including: ASEAN–China Free Trade Area (2010) Peru, China–Peru Free Trade Agreement (2010) Economic Cooperation Framework Agreement (2010), and the former Trans-Pacific Partnership. The Economic Policy of China is changing its focus towards promoting structural reforms and maintaining stability. The Monetary policy will place more efforts on preventing financial risks and keeping the RMB exchange rate stable while keeping a watchful eye on non-performing FDIs, defaults on bonds, internet finance and shadow banking. The Fiscal policy will focus additionally on increased taxes on high-polluting companies as well as reforms in electricity, oil, and gas.Infrastructure and LogisticsChinas physical infrastructure plays a key role in their economy. In 2016 720 billion dollars was invested over 3 years, contributing to 303 on going transportation infrastructure projects. The country is attempting to improve its high-speed transportation networks in inner city’s due to its enormous population. Most of this investment will be spent on highway and railway expansions. As of 2014 Chinas high-speed railway totaled 16,000 km and is currently growing. Chinas highway system is the world’s largest expressway system although, expressways in China are a recent addition to the transportation infrastructure in the country and are up to date in result of recent construction. China’s government, specifically the Ministry of Health of the State Council oversees the health services system and over 21,000 general hospitals are currently operational. Beijing is home to second busiest airport in the world, where 90 million passengers fly out of annually. Furthermore, shipping ports in China are of the busiest in the world, the 8 busiest Mainland China shipping ports are each located over a long section of China’s east coast stretching from Shenzhen in the South to Dalian in the North. Of these, 7 ports are in coastal cities, while the Port of Guangzhou is further inland at the confluence of 3 major rivers and Shanghai being the busiest port. In conclusion, most of Chinas infrastructure is currently up to date and is of no concern when conducting business operations here. Telecommunications in China is a system that links all parts of the country and world by Internet, telephone, telegraph, radio, and television. Cellular telephone service is widely available and reliable, which is all monitored and regulated by the Ministry of Industry and Information Technology. Overall, telecommunication system in China is satisfactory, reliable, and available. Political: The Chinese government is made of four branches, the judicial, the legislative, the executive, and the military. The Chinese Communist Party (CCP) is currently the leading political party in China and unlike parties in the Western hemisphere, the CCP is a tightly organized political force that completely controls and leads society at all levels. The leader of the CPP is Xi Jinping who is President of the People’s Republic of China. The Independence Day of China is celebrated on October 1st marking the creation of the People’s Republic of China. Tensions between North Korea and the U.S have become a growing concern for Chinese officials. Testing of missiles and nuclear development in North Korea have concerned China because it is a traditional ally with both countries U.S. and North Korea. This causes major issues as trade sanctions have been placed on North Korea as well as sanctions placed on Chinese companies for continuing to trade these commodities with North Korea.Imports and ExportsChina is Canada’s second largest trading partner with its trading in both imports and exports as the second highest in Canada after the United States. In October 2014, China had $1,706 million dollars in exports in Canada, which from October 2013 to October 2014 increased by 12.6% according to Statistics Canada. China provides much more in imports than exports when trading and in October 2014, it was $3,165 million dollars, which from October 2013 to October 2014 increased by 13.9%. China’s trade balance with Canada increase from -874 to -1,458 October 2013 to October 2014. In recent years, both Canada and china have been steadily increasing trade with each other with China becoming our #2 Trade partner behind the USA. Canada’s imports in recent years seem to be much more than exports as from 2014 to 2015 seem to be more than double than from imports, and from 2016 to 2017, both imports and exports were decreasing. However, despite decreases from both imports and exports, Canada’s trade balance with merchandise trade has increased. Canada mostly trades woods, machinery, appliances, and most recently began trading more meat to China. China exports up to $27 billion with Canada, with most of the exports being in electronics and machinery, and then being furniture and equipment. Since Canada is a member of the G7, China is hoping to gain more access to these other markets within the group such as Japan, the United Kingdom, etc. Canada trades up to 20% in beans and other produce, with the rest in other products such as meat and wood, recent talks with China and Canada say that there will be more trade in these exports. China’s total imports with Canada in 2016 are 18.3 billion, with almost 25% of those import’s electronic appliances such as computers, broadcasting equipment, and telephones. China and Canada also trade with each other vehicle and car parts; however, they are less than 3% of imports and 6% of exports. Canada’s totals imports from China for 2016 are a total of $48.6 billion. China’s exports with Canada in 2015 were almost double at $49.5 billion with more exports in appliances, computers, and telephones. Canada’s trade in services with China is in travel, commercial services, and transportation and government services, with travel being the largest service sector in exports, and transportation as well as government services being the largest in imports. ConclusionWe believe a trade agreement with Canada and China is good for both since China has one of the largest economies in the world and having a relationship with Canada will give Canada easier access within the Asian market and region, as well as China’s own market since the are so huge. Canada is a member of the G7, which is a good thing for China because that means that they might have access to the other countries of the G7 as well such as Japan and Italy. China can benefit from the rest of the western region since Canada is a major trading country within the western hemisphere. And Canada can also benefit from China since they have major influence within the Asian-pacific region and they can provide major services in both labor and natural resources, as well as manufactured goods to both import and export.