Harper's preference was to tilt Canadian policy in Asia toward other Western-style democracies and to put greater emphasis on human rights. After winning the January 2006 election, he made no effort to flesh out the Martin-Hu "strategic partnership" and his government took a number of actions sure to irritate Beijing, such as renewing public criticism of China's human rights record, suspending the bilateral human rights dialogue, loosening restrictions on contacts with Taiwan and reviving accusations of industrial espionage. He topped it off in late 2007 by greeting the Dalai Lama on Parliament Hill-other Canadian leaders had met with the Dalai Lama but never at an official government location.

Unrepentant stance

Asked whether he was concerned about the impact of his pugnacious approach on Sino-Canadian relations, Harper was unrepentant: "I think Canadians want us to promote our trade relations worldwide, and we do that. But I don't think Canadians want us to sell out important Canadian values. They don't want us to sell that out to the almighty dollar."

But significant elements of the Canadian business community were concerned, worried that Canadian companies would be handicapped in the Chinese market. In the short term, that seems not to have been the case as trade continued to expand until the recent worldwide economic crisis. But Canada's share of the Chinese market has been shrinking and Canadian exports remain dominated by the sale of commodities. According to a report in Canadian Business magazine, in 2006 Canada ranked 10th on the Chinese Commerce Ministry's list of China's top 10 trade partners; by 2008 Canada had fallen off the list completely.

Jim Balsillie, co-founder of Research in Motion, one of Canada's most successful hi-tech companies, publicly called on the federal government in November to "push the restart button on Canadian-Chinese relations."

Former Prime Minister Chrétien has also criticized Harper's policy as both ineffective and shortsighted. In a speech last summer to the Canadian Bar Association, he said: "There are always consequences in what you do. If you think that attacking them [the Chinese] would be positive, what do you gain? It is the second biggest economy in the world, and in 50 years, it will be the biggest economy. Suddenly, you break the bridge.

"We are at the bottom of the ladder in terms of having any influence with China," Chrétien added. "Ask any businessman who has been to China, and he will tell you the same thing."

In fact, there have been some slight signs of warming. For one thing, Harper and his ministers have muted their outspoken criticism. Harper has even suggested he might visit Beijing, although no trip has been scheduled. And the government has expanded Canada's diplomatic presence in China, announcing six new consular bureaus in regional cities.

But new irritants have also appeared, most recently the Canadian decision to grant a work permit to Lai Changxing, a fugitive who is wanted in China on smuggling and corruption charges. "We are extremely concerned about the Canadian side's behavior," Chinese Foreign Ministry spokesperson Jiang Yu said on February 10. "The Chinese Government is unwavering and consistent in its position that the fugitive Lai Changxing return to face trial under Chinese law. We have already made serious representations to the Canadian side."

Ironically, the Canadian Government supports sending Lai back for trial but has been blocked by its own courts, which have not accepted Chinese assurances that Lai will not face execution if he returns.

The Lai case has been dragging on since 1999. Back then, when China and Canada were "best friends," it was a minor issue. Now it is another disagreement in the no longer "special relationship."