Carney, Xi Signal New Era in Canada-China Relations

Speaking after his meeting with Xi, Carney said recent advances in the relationship had strategic significance beyond bilateral ties.

“The progress we have made in the partnership sets us up well for the new world order,” Carney said, underscoring Ottawa’s intention to pursue a more diversified and resilient foreign and trade policy.

Carney argued that deeper engagement with China could deliver gains in agriculture, energy and finance while helping stabilize an increasingly strained multilateral system.

Reducing Reliance on the United States

The visit underscored Ottawa’s efforts to reduce dependence on the United States as its primary trading partner. Carney’s comments came amid US tariffs, heightened geopolitical tensions and sharp rhetoric from the Trump administration, including threats to make Canada the 51st US state.

Carney has pledged to double non-US exports over the next decade as part of a broader strategy to diversify Canada’s trade relationships.

Xi Calls Relations a ‘Turning Point’

Xi described China-Canada relations as having reached a “turning point,” referencing a meeting between the two leaders in South Korea last October.

He said recent discussions between government agencies had produced positive results and stressed that a stable bilateral relationship serves not only both countries but also global peace and prosperity.

Xi added that Beijing is ready to work with Canada to place ties on a “healthy, steady and sustainable” path.

Trade Dispute Eased With New Deal

Hours after meeting Xi, Carney announced a preliminary trade agreement aimed at ending a multi-year dispute triggered by Canada’s tariffs on Chinese electric vehicles, steel and aluminum.

Under the deal, China is expected to lower canola seed duties to 15 per cent by March, while tariffs on Canadian canola meal, lobsters, crabs and peas will be lifted from March through at least the end of the year.

In return, Canada will allow up to 49,000 Chinese electric vehicles into its market at a 6.1 per cent tariff rate. Carney said the agreement would provide an immediate economic boost and described it as his first trade deal since taking office.

Strategic Partnership and Multilateral Commitments

According to a joint statement, both sides committed to advancing a “new strategic partnership.” Canada reaffirmed its long-standing one-China policy, while both countries pledged support for multilateralism, the United Nations and a rules-based trading system under the World Trade Organization.

The two sides also signed memoranda of understanding covering economic and trade cooperation, energy, crime prevention, modern wood construction, culture, food safety and animal and plant health.

A Symbolic Visit

Carney arrived in China on Wednesday for a four-day visit, his first since becoming prime minister and the first by a Canadian leader in eight years. Former prime minister Justin Trudeau last visited China in 2017.

Canada and China established diplomatic relations in 1970, with bilateral trade reaching $67 billion by the end of 2024. Carney said the progress made during the visit positions both countries “well for the new world order.”