Canada and China are set to sign a deal that will allow assets to be seized from people who Beijing suspects of committing economic crimes, according to the China Daily newspaper.
Chinese President Xi Jinping has expanded a domestic anti-corruption campaign overseas in recent months. The international operation, called "Fox Hunt," has seen Beijing reaching out to foreign governments as it pursues fugitives.
Canada is thought to be one of the top destinations for alleged economic fugitives from China.
For the most part, foreign governments have remained cautious about signing extradition deals with China, amid caution over the country's human rights record. However, Canada has now joined France and Australia in agreeing cooperate with Beijing.
The Canada-China agreement covers "the return of property related to people who would have fled to Canada and would have been involved in corrupt activities," said the Canadian ambassador to China, Guy Saint Jacques, as quoted by the China Daily.
China has previously said it could sue people suspected of financial crimes who have fled abroad.
China currently has 39 extradition agreements with foreign countries although it has no such mechanisms in place with Canada and the United States, the two most likely destinations for economic fugitives.