Canada and China Chart New Course Amid Trade Tensions

Sat Nov 01 2025 06:37:14 GMT+0200 (Eastern European Standard Time)

Prime Minister Mark Carney's visit to China marks a pivotal moment in Canada-China relations, as both nations seek to resolve existing trade disputes and strengthen economic ties.

In a significant diplomatic development, Canada's Prime Minister Mark Carney has accepted an invitation from Chinese President Xi Jinping to visit China, signaling a potential 'turning point' in the long-strained Canadian-Chinese relationship. This invitation follows their recent meeting on the sidelines of the APEC summit, marking the first time since 2017 that the two leaders have engaged face-to-face. Both parties aim to swiftly address and rectify outstanding trade issues amid escalating tensions with the US.

Canada's Prime Minister Mark Carney accepted an invitation to visit China extended by President Xi Jinping, signalling a turning point in the countries' relationship.

The invite came after the two leaders met for 40 minutes on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit on Friday. It was the first meeting between a Canadian prime minister and the Chinese president since 2017.

The countries have had a strained relationship since a diplomatic row in 2018 and been locked in a trade dispute since 2024.

But as trade tensions between Canada and the US continue to rise, Carney has said the country will turn to strengthening its ties with other major economies.

He has signalled his desire to double Canada's non-US exports in the next decade, in response to President Donald Trump placing punishing tariffs on Canadian goods and some of its critical sectors.

That includes closer trade ties with the economic giants of Asia, Carney said last week.

Speaking briefly to reporters after his meeting with Xi, Carney expressed his belief that Canada and China have reached a turning point in relations that will yield positive developments for the Canadian economy, stating, Distance is not the way to solve problems, not the way to serve our people.

In his remarks, Xi indicated that China is willing to work with Canada to push China-Canada relations back onto a healthy, stable, and sustainable correct track that benefits both countries.

The two leaders directed their officials to move quickly to resolve outstanding trade issues and irritants, according to a readout released by Carney's office after the meeting.

A 'two-front trade war' with China and the US

A trade dispute has been escalating since Canada placed a 100% tariff on Chinese electric vehicles in October 2024, mirroring similar action by the US. Subsequently, Canada imposed tariffs on Chinese steel and aluminum.

China retaliated in March by imposing tariffs on several Canadian agricultural products, heavily impacting farmers in Western Canada.

Some provincial premiers have called for the federal government to drop tariffs on Chinese EVs, citing a two-front trade war with Canada’s two largest trading partners.

Prior to the tariffs, Canada-China relations had already been strained due to a diplomatic conflict leading to the detention of two Canadians in China in 2018. The easing of tensions could signal a potential shift in the economic landscape of the region.