Canada’s Prime Minister Carney visits China to pursue trade diversification and renew ties

Canada’s Prime Minister Carney visits China to pursue trade diversification and renew ties

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Canadian Prime Minister Mark Carney arrived in China to mark first visit to Beijing by a Canadian leader since 2017. Carney’s trip aimed at resetting the relations with China, driven by trade pressures, geopolitical shifts, and shared economic interests.

Speaking during meetings in Beijing, Carney praised China’s leadership and said relations between the two countries were entering a new phase at a time of global uncertainty.

“We’re heartened by the leadership of President Xi Jinping and the speed with which our relationship has progressed,” Carney said in talks with Zhao Leji, chairman of the Standing Committee of China’s National People’s Congress.

“It sets the stage for these important discussions on a wide range of issues where we can be strategic partners from energy to agriculture, to people-to-people ties, multilateralism, to issues on security,” he added.

Relations between Ottawa and Beijing deteriorated sharply in late 2018 after Canadian authorities detained Huawei executive Meng Wanzhou in Vancouver on a U.S. extradition request. China responded by arresting two Canadian citizens on espionage charges. All three were released in 2021, but political trust remained strained.

Further tensions emerged in 2024 when Canada imposed steep tariffs on Chinese electric vehicles, citing unfair state subsidies and risks to Canada’s auto industry. Beijing retaliated with tariffs on more than $2.6 billion worth of Canadian agricultural and food products, including canola oil, meal, and seed. Chinese imports of Canadian goods fell by 10.4 percent in 2025.


Carney’s government has moved quickly to recalibrate the relationship since he took office last year, distancing itself from the more confrontational tone of his predecessor while stopping short of abandoning Canada’s concerns over security, human rights, and political interference.

“This marks a recalibration and change in tone and signals Canada’s desire to improve relations,” said Vina Nadjibulla, vice president of research and strategy at the Asia Pacific Foundation of Canada.


Carney hails “new strategic partnership” as he meets Xi Jinping

China and Canada should be partners based on mutual respect, trust, and common development, President Xi Jinping said on Friday during talks with Canadian Prime Minister Mark Carney, who is in Beijing on a four-day visit. “China and Canada should be partners of mutual respect, common development, mutual trust and collaboration,” Xi said at the meeting.

He said the foundation of economic and trade relations between the two countries is mutual benefit and win-win cooperation, noting that both sides have gained from engagement.

The meeting, held at the Great Hall of the People, marked the second direct exchange between the two leaders, following their discussion on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea in October.

Xi said that the earlier meeting was “a very good meeting,” which “marked a turnaround in the China-Canada relations and placed it on an upward trajectory.”

Carney said Canada is looking to enter a “new era of relations” with China and confirmed that the two sides signed several agreements this week covering energy, agriculture, and animal health. He said he was “extremely pleased” that the two countries were advancing toward a new strategic partnership and highlighted agriculture, energy, and climate as areas where both sides could make historic gains.

Chinese President Xi Jinping meets with Canadian Prime Minister Mark Carney
Chinese President Xi Jinping meets with Canadian Prime Minister Mark Carney on the sidelines of the 32nd Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Gyeongju, South Korea, on October 31, 2025. (Image Credit: Xinhua/via China Daily)

“Together, we can build on the best of what this relationship has been in the past to create a new one, adapt it to new global realities to deliver stability, security, and prosperity for our peoples,” Carney said. Xi said a stable relationship between the two countries serves not only their shared interests but also global stability.

“A healthy and stable China-Canada relationship serves the common interest of our two countries; it is also good for the peace, stability, and prosperity of the world,” he said.

Despite progress on cooperation, trade tensions remain unresolved. Canadian officials said ahead of the visit that movement on tariffs affecting electric vehicles and canola was possible, but a full resolution was unlikely. Industry Minister Melanie Joly said negotiations were still ongoing and that Carney would address the issue further following his meeting with Xi.


Trade Pressures from Washington

The renewed engagement with China comes as Canada faces mounting economic pressure from the United States. President Donald Trump has imposed a 35 percent across-the-board tariff on Canadian goods, along with separate duties on steel, aluminum, lumber, and automobiles. Trump has also repeatedly suggested Canada could become the United States’ 51st state.

Compounding the uncertainty, Trump stated this week that the United States-Mexico-Canada Agreement is “irrelevant” to the U.S., despite the pact being up for review later this year. Canada sends roughly three-quarters of its exports to the United States, while China is its second-largest trading partner.

Carney has made trade diversification a central objective of his economic strategy, pledging to double Canada’s non-U.S. trade over the next decade. He has already traveled to the European Union and the Gulf and is scheduled to visit Qatar after leaving Beijing.

Senior Canadian officials have described the China trip as “consequential and historic,” arguing that Canada cannot reduce its reliance on the U.S. without rebuilding commercial ties with Beijing.

Chinese Premier Li Qiang shakes hands with Canadian Prime Minister Mark Carney
Chinese Premier Li Qiang (right) shakes hands with Canadian Prime Minister Mark Carney on witnessing the exchange of multiple bilateral cooperation documents following their talks in Beijing, China, on January 15, 2026. (Image Credit: Wang Zhuangfei/China Daily)


Energy, Agriculture, and Investment

During meetings with Premier Li Qiang, Carney said progress had been made on resolving trade irritants and creating platforms for new cooperation.

“Our teams have worked hard, addressing trade irritants and creating platforms for new opportunities,” he said. “I believe that together, we are bringing this relationship back toward where it should be.”

On Thursday, both sides signed a trade and economic roadmap committing to “maintaining open channels of communication” to address disputes, particularly in agricultural trade. Ottawa welcomed Chinese investment in energy, agriculture, and consumer products, while Beijing expressed interest in Canadian investment in services, aerospace, advanced manufacturing, and new materials.

Energy cooperation featured prominently. Canada’s Natural Resources Minister Tim Hodgson said China had made clear it was seeking reliable suppliers and was interested in Canadian oil, gas, and natural uranium.

The agreements, Carney said, provide “an example to the world of cooperation amidst a time globally of division and disorder.”


Business Outreach and Auto Tariffs

Since arriving in Beijing, Carney has met executives from major Chinese firms, including battery manufacturer CATL, China National Petroleum Corp, Alibaba, Envision Energy, Industrial and Commercial Bank of China, and Primavera Capital Group.

Auto tariffs remain a sensitive issue. Industry Minister Melanie Joly said discussions on electric vehicle duties were ongoing and would continue on Friday, declining to confirm whether Canada might cut the tariffs by 50 percent.

One of Canada’s immediate goals is easing Chinese tariffs on canola, which have hit farmers hard in the prairie provinces. Beijing has made clear it expects progress on EV tariffs in return.

Chinese Premier Li Qiang with Canadian Prime Minister Mark Carney
Chinese Premier Li Qiang (right, back row) and Canadian Prime Minister Mark Carney (left, back row) witness the signing of multiple bilateral cooperation documents following their talks in Beijing, China, on January 15, 2026. (Image Credit: Wang Zhuangfei/China Daily)


Political Sensitivities

Despite the warmer tone, political sensitivities persist. Ahead of Carney’s arrival, two Canadian lawmakers from the ruling Liberal Party cut short a visit to self-governing Taiwan, citing the need to avoid “confusion” in Canada’s foreign policy during the Beijing trip.

China has long criticized Canada for aligning too closely with U.S. policy and hopes the visit will be portrayed domestically as Ottawa correcting past mistakes. Analysts say Beijing is also seeking a political and narrative win, particularly on issues such as Taiwan and the South China Sea.

“I think we are approaching the relationship now with the realism that we haven’t seen for decades,” said Colin Robertson, a former Canadian diplomat. He added that clearer expectations could result in a “healthier relationship if both sides understand where the red lines are.”


Balancing Act

Canada continues to describe China as an increasingly disruptive global power, even as it acknowledges the need for selective cooperation. Officials insist the outreach does not represent a shift away from Canada’s security and human rights commitments.

With Washington closely watching developments, Carney faces a delicate balancing act as Canada prepares for high-stakes talks on the future of North American trade later this year. “At the end of the day, there are Canadian interests that we’re pursuing,” Robertson said.

For now, Carney’s visit marks the clearest signal in nearly a decade that both Ottawa and Beijing are willing to test whether a more stable, transactional relationship is possible in a fractured global economy.

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