In a historic move, Canada’s Prime Minister Mark Carney has hailed a “new strategic partnership” with China, as he held talks in Beijing with President Xi Jinping. This marks the first visit by a Canadian leader to the country in eight years, underscoring the importance of this diplomatic milestone.
Addressing Xi in the Great Hall of the People, Carney stated: “Together we can build on the best of what this relationship has been in the past to create a new one adapted to new global realities.” The two leaders announced a preliminary trade deal aimed at reducing tariffs, including a commitment for China to import 49,000 electric vehicles from Canada at preferential rates.
Carney emphasised that “engagement and cooperation would form the foundation of our new strategic partnership”, highlighting opportunities in sectors such as agriculture, energy, and finance. This shift in Canada’s approach comes as the country seeks to diversify its trade links away from its largest partner, the United States, following the Trump administration’s imposition of steep tariffs on Canadian goods.
The visit has been the result of careful diplomatic calculations, as Canada grapples with the strain of its trade war with the US and the urgent need to expand exports to offset mounting economic pressures. During the trip, the two sides signed an agreement to cooperate on clean energy and fossil fuels, reopening ministerial-level talks that had been frozen for nearly a decade.
This agreement paves the way for Canada to import more clean-energy technology from China and raises the prospect of increased Canadian fossil fuel exports to the Chinese market, as part of Carney’s push to double non-US exports. In 2024, only 2% of Canada’s crude oil was exported to China.
Additional agreements were also signed covering forestry, culture, and tourism, underscoring the breadth of the new strategic partnership. Welcoming Carney, President Xi said that China-Canada relations had reached a turning point, with the previous meeting in 2025 opening “a new chapter in turning China-Canada relations toward improvement.”
The thaw in relations comes after a period of diplomatic tensions between the two countries, stemming from the 2018 arrest of Huawei’s chief financial officer, Meng Wanzhou, on a US warrant. This prompted retaliatory actions and trade disputes, which have now been superseded by a renewed commitment to strengthening ties.
As Canada seeks to reduce its reliance on the US market, this strategic pivot towards China represents a significant shift in its international trade and diplomatic strategy. The success of this partnership will be closely watched, as the two countries navigate the complex web of global economic and geopolitical dynamics.
