Many Canadian politicians have forged unhealthy relationships with China; Ottawa must renew its most important partnership with the United States, former senior Mountie Garry Clement writes.

As Canada looks ahead to 2025, it stands at a crucial juncture, facing both unprecedented challenges and emerging opportunities. The nation’s evolving relationship with China, ongoing concerns about money laundering, the upcoming federal election, and its delicate position in U.S.-Canada relations present an intricate web of issues that will shape the country’s future. How Canada navigates these issues in the next year will determine not only its global standing but also its domestic harmony.

The China Challenge

Since the era of Pierre Elliott Trudeau, many Canadian politicians have forged what we now recognize as unhealthy relationships with China, enabling the country to interfere in our electoral process at all levels of government. This has provided an opportunity for Triads and Chinese Communist Party sympathizers to infiltrate Canadian society and Canadian politics.

In the past decade, Canada’s relationship with China has been strained, primarily due to geopolitical tensions and human rights concerns, but this has not resulted in any meaningful restrictions being placed on China by Canada. In 2025, this relationship will remain a balancing act—Canada must tread carefully between maintaining diplomatic and trade ties with a rising global power while aligning with Western allies who increasingly view China as a strategic adversary. Canadian politicians will also need to understand and accept that United Front Groups existing in Chinese diaspora communities across Canada have been shown to be allied with the Chinese government.

Canada’s foreign policy decisions will likely be influenced by developments in China’s global ambitions, particularly in areas such as the Belt and Road Initiative, the Taiwan issue, and its growing military presence in the South China Sea. The country’s relationship with China is at a crossroads, with growing calls for Canada to take a firmer stance on human rights issues, such as the treatment of Uyghurs in Xinjiang and Hong Kong’s autonomy. On the other hand, China remains a vital trading partner, especially in the context of Canada’s resource exports. Notwithstanding this, Canada will have a decision to make and hopefully it leans towards protecting Canada’s sovereignty.

Canada must also be prepared to reassess its foreign policy posture as the global balance of power continues to shift. The 2025 federal election could provide a pivotal moment in shaping public opinion on China and its place in Canada’s future.

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Money Laundering: An Ongoing Domestic and International Concern

Another pressing issue for Canada in 2025 is the continuing challenge of money laundering, particularly within its real estate and financial sectors. Internationally, Canada’s role in global financial markets means that it cannot afford to be complacent about illicit financial flows. Recent reports have highlighted how foreign actors, including from China, have used Canadian institutions to launder money and hide illicit funds.

The Cullen Commission highlighted that Canada has failed on so many fronts to ensure an effective and efficient legislative, enforcement, and prosecutorial regime existed for almost two decades, thereby making Canada an attractive venue for transnational organized crime groups. This has resulted in Canada having to prove that as a country we can combat money laundering if we want to shore up our failing international credibility. Failure to address these concerns will damage Canada’s reputation as a stable and transparent financial hub, while also complicating its relationships with other Western countries, including the United States. The government must intensify efforts to strengthen regulatory frameworks and enhance cross-border cooperation in financial crime prevention.

The Federal Election: A Fork in the Road

As 2025 approaches, Canada’s political landscape is increasingly polarized. The upcoming federal election promises to be a defining moment for the nation, as Canadians grapple with issues such as climate change, economic recovery post-COVID, affordability, and national unity. Without a doubt, I would argue the silent majority has been awakened and recognizes the past eight years of adopting a strong left-leaning stance has destroyed our reputation, thereby making us an easy target for President-elect Trump’s jibes and eventual pressure policies. The federal government will need to address voter concerns over Canada’s long-term economic health, our failed federal enforcement activity, and our weakened military.

At the same time, the political environment is also becoming more contentious, with rising populism and discontent in some regions. The election could see significant shifts in power, with both the Liberal and Conservative parties positioning themselves to address key issues such as national security, healthcare, and environmental sustainability. The outcome of this election will set the tone for how Canada navigates both domestic and international relations in the years to come.

U.S.-Canada Relations: A Symbiotic but Complex Partnership

Canada’s relationship with the United States remains the cornerstone of its foreign policy. As the world’s largest trading partner, the U.S. is integral to Canada’s economy. However, relations between the two countries are often fraught with tensions, from trade disputes to environmental policies. In 2025, this partnership will be tested further, particularly as both nations contend with the challenges of climate change, security concerns, and evolving trade agreements.

The U.S. presidential election in 2024 has already caused profound impacts on Canada’s policy decisions and political culture. While Canada and the U.S. share many common interests, the complexities of these issues—ranging from pipeline disputes to defense policy—will require sophisticated diplomacy to ensure the continued strength of this vital partnership.

Canada will also need to navigate the increasing pressure from the U.S. to align with its foreign policy stance, particularly in relation to China, Russia, and international trade agreements. While maintaining sovereignty is critical, Canada must ensure its policies do not continue to erode relations with its largest neighbor and closest ally.

A Year of Critical Decisions

Canada in 2025 faces a year of unprecedented decisions, with geopolitical tensions, financial integrity, and political stability all in play. The global stage is shifting, and Canada’s role within this changing landscape will depend on how effectively it addresses both internal challenges and external pressures. As the nation prepares for an important election and responds to global geopolitical shifts, it will need strong, visionary leadership to steer it through uncertain waters. Whether it is rethinking its relationship with China, confronting the realities of money laundering, or strengthening ties with the U.S., Canada’s future will depend on its ability to navigate this complex and interconnected world.

Ultimately, 2025 presents Canada with an opportunity to reassert its values, chart a clear course in the face of global uncertainty, and ensure that it remains a respected and influential player on the world stage.

Garry Clement consults with corporations on anti-money laundering, contributed to the Canadian academic text Dirty Money, and wrote Undercover, In the Shady World of Organized Crime and the RCMP