Canadian Prime Minister Mark Carney and Chinese President Xi Jinping have met in Beijing, marking a pivotal moment in China-Canada relations with both leaders praising a ‘turnaround’ in ties and announcing a new strategic partnership that includes significant trade concessions.
In a high-profile meeting at the Great Hall of the People, President Xi Jinping hailed the ‘turnaround’ in bilateral relations since their last encounter in November, emphasizing mutual respect and trust. Prime Minister Carney echoed this sentiment, describing the visit as ‘consequential and historic’ and outlining a five-point framework for enhanced cooperation covering clean energy, trade, multilateralism, public security, and cultural exchanges.
Central to the discussions were trade barriers that have long strained economic ties. Canada has agreed to allow up to 49,000 Chinese electric vehicles into its market at a reduced tariff rate of 6.1%, down from the 100% tariff imposed in 2024. In return, China will lower tariffs on Canadian canola seed to approximately 15% by March 1, and eliminate tariffs on Canadian peas, lobsters, and crabs for the rest of the year, providing immediate relief to Canadian farmers and exporters.
This diplomatic thaw comes after nearly a decade of frosty relations, which hit a low in 2018 with the arrest of Huawei executive Meng Wanzhou in Canada at the behest of the United States. China’s subsequent detention of two Canadian citizens, Michael Kovrig and Michael Spavor, further escalated tensions until their release in 2021. Carney’s visit, the first by a Canadian prime minister in eight years, signals a deliberate effort to reset ties and reduce Canada’s economic reliance on the United States.
Geopolitically, both leaders emphasized the importance of multilateralism and stable international partnerships, with Carney noting that the relationship with China has become ‘more predictable’ compared to the uncertainties with the U.S. under the Trump administration. This shift reflects broader global trends as Western nations seek to diversify trade relationships amidst ongoing trade disputes and protectionist policies.
Carney, a former central banker, has positioned this visit as part of his strategy to bolster Canada’s economy by expanding export markets. With China being Canada’s second-largest trading partner, the agreements aim to unlock new opportunities in energy, minerals, and agriculture, while navigating the complexities of U.S.-China tensions and domestic political considerations.
Observers have noted the significance of Carney’s ‘new world order’ remark, which has sparked debate but underscores the evolving global landscape. The partnership is expected to enhance cooperation on clean energy and climate initiatives, with Canada inviting Chinese investment in its energy grid expansion and both countries committing to joint efforts in technology and innovation.
Looking ahead, the success of this reset will depend on the implementation of the trade deals and continued diplomatic engagement. While challenges remain, including concerns over foreign interference and human rights, the meeting sets a positive tone for future collaboration, potentially influencing other Western nations’ approaches to China and contributing to a more balanced international order.
