Canada appoints former McKinsey consultant as new envoy to China

By David Ljunggren

OTTAWA (Reuters) - Canada has appointed veteran business consultant Dominic Barton as ambassador to China, Prime Minister Justin Trudeau said on Wednesday, as the government continues to grapple with a major diplomatic and trade dispute.

Barton, a Ugandan-born Canadian who stepped down as global managing partner of consulting firm McKinsey & Co last year, has extensive experience in China and is close to Trudeau's Liberal government.

“His years of experience in Asia, and the significant global economics expertise he has acquired over an impressive career, will make him a great choice to represent Canada, and Canadian interests, in China,” Trudeau said in a statement.

Barton replaces John McCallum, who Trudeau fired in January for commenting on the case of a Huawei Technologies Co [HWT.UL] executive who was arrested in Canada and is fighting extradition to the United States.

Beijing, which insists Canada return Huawei Chief Financial Officer Meng Wanzhou, has blocked imports of Canadian canola seed and pork and beef products. It has also charged two Canadian men with spying.

“The relationship between Canada and China is an important one, and I will work hard to represent our great country and to resolve the challenges that currently exist,” Barton said in the statement.

The news indicates that the two governments are still talking despite months of fraught ties. The Chinese embassy in Ottawa had no immediate comment.

“This is the outcome of a months-long diplomatic process,” a Canadian government official said earlier on Wednesday.

Gary Stordy, director of government and corporate affairs at the Canadian Pork Council, called the appointment a positive move.

“It's the next step to normalizing relations between the two countries and move past some of the baggage that has been collected,” Stordy said. “We're looking to regain market access into China.”

Canola Council President Jim Everson also welcomed the news, saying the group is looking forward “to working with Mr. Barton to restore canola exports”.

Last month, Canadian Foreign Minister Chrystia Freeland said she met her Chinese counterpart to discuss tensions “and ”committed to continued discussions.

The dispute could become an issue in a federal election set for Oct 21. The Liberals face a tough fight against the Conservatives of Andrew Scheer, who complain Trudeau has not been tough enough on Beijing.

For the past few months, Barton had been talking to his network in China about issues such as trade and the detained Canadians, the government official said.

Barton also helped set up meetings with Chinese officials on the sidelines of a recent Group of 20 meeting.

In 2016, the Canadian government appointed Barton as head of an advisory council on economic growth.