After US oil snub, Canada focuses on China

* Looks to sell oil to booming Chinese, Asian markets

* Canada PM leading biggest trade mission since 1998

OTTAWA - Canada will focus on exporting oil and other goods to China and other booming Asian economies even if Washington overturns its decision to block a pipeline that would have sent more Canadian crude to the United States.

Speaking ahead of Canada's most high-powered trade mission to Beijing for almost 15 years, Prime Minister Stephen Harper told Reuters that Canada must focus on markets that are growing, regardless of the fate of the Keystone XL pipeline, which is proposed to carry crude from the Alberta oil sands to Texas refineries.

The US State Department blocked Keystone last month, saying they didn't have time for a thorough environmental review.

"I think we need to be clear. As much as I want to see that Keystone project proceed, I think this incident ... underscore(s) the fact that it is in this country's national interest to be able to sell products beyond the United States," Harper told Reuters in an interview.

"And I don't think a reversal of an American decision can change that fundamental reality. So I think it is absolutely essential that we find ways of being able to sell our products to the biggest growing markets in the world, and those are in Asia."

Canada - the largest supplier of energy to the United States - was profoundly disappointed by Washington's decision to veto TransCanada Corp's Keystone project. The United States - which is by far Canada's largest trading partner - is unlikely to look at it again until next year.   

At 170 billion barrels, Canada's oil sands are the third-largest crude deposit in the world, and Canadian exports to bigger markets will be a focal point of Harper's meetings in China, where he will be accompanied by five cabinet ministers and the heads of major corporations seeking business.

China does not currently import Canadian crude. Enbridge Inc wants to build a pipeline from Alberta to the Pacific but it could take years to approve and complete the project.

China's international oil firms, taking a more long-term view, have spent or pledged to invest more than C$11 billion ($11.1 billion) in Canada's energy patch since 2005.

The Canadian mission, which will arrive in Beijing on Tuesday, is the largest of its kind since 1998. Guests include top executives from Shell Canada, Enbridge and Canadian Oil Sands as well as uranium producer Cameco Corp and mining firm Teck Resources Ltd.

Other firms include plane and train maker Bombardier Inc , Air Canada, Eldorado Gold Corp, SNC-Lavalin Group Inc, Canfor Corp and West Fraser Timber Co Ltd.

Harper cited problems in the United States and Europe as a reason for focusing on Asia medium-term growth potential.

"That doesn't mean we're going to pass on the developed world ... but I think all the experts agree that the prospects for the greatest global growth are in Asia and we want to make sure we exploit this," he said.