Even if many Canadian companies have no intention of trading or investing in Asia, they will need to heed the competition from Chinese companies that they will feel increasingly, even here at home, says Yuen Pau Woo, president of the Asia-Pacific Foundation in Vancouver.

"They're not just missing out on an opportunity" by failing to watch China closely, he said.

"They could also be setting themselves up for stiff competition."

The Canadian auto parts sector is particularly guilty of falling far behind in dealing with the China factor, he added.

And so unless the Canadian economy reorients itself, the sheer weight of China in the world economy could turn Canada into a nation dependent primarily on its oil and gas sector.

Canadian businesses are talking a lot about China, but so far, few have been successful in using Chinese markets to their advantage. Of all the recent foreign investment in China, only 1 per cent comes from Canada.

Ottawa is on a mission to have every company in Canada devise a "China strategy" that will focus even small firms on developing a competitive edge.

But it's not just because they're lazy or risk-averse that Canada's companies are not making the inroads into China that other countries' private sectors are, says economist Erik Nilsson of Bank of Nova Scotia.

Many of Canada's big companies are foreign-owned, and Canadian-owned firms are predominantly small or medium-sized, focused on servicing the North American economy, Mr. Nilsson says.

The article points out that Canada’s share of foreign investment in China has been stubbornly fixed around 1% for the last several years. Increasing that share is a national priority for Canada.

Strong encouragement for even the smallest businesses to have a China strategy is an excellent start. It’s still amazing how many American companies still have their head in the sand hoping China will go away, and that’s hopeful and unhealthy (for that business) thinking.