Canada PM hails new partnership with China in wake of ‘new global realities’ | Canada

by Rachel Morgan News Editor

Canadian Prime Minister Mark Carney concluded a visit to Beijing on Friday, marking the first trip to China by a Canadian leader in eight years. During talks with President Xi Jinping, Carney announced what he called a “new strategic partnership” between the two nations.

A Shift in Approach

Carney, addressing Xi in the Great Hall of the People, stated that the partnership would focus on “engagement and cooperation,” with initial progress expected in agriculture, energy, and finance. This move comes after years of strained relations stemming from the arrests of citizens from both countries and subsequent trade disputes.

Did You Know? Canada and China experienced a significant diplomatic chill beginning in 2018, triggered by Canada’s arrest of Meng Wanzhou, the daughter of Huawei’s founder, on a US warrant.

The prime minister’s visit is largely seen as an effort to diversify Canada’s economic relationships, particularly in light of tariffs imposed on Canadian products by the US under President Trump. In October, Carney publicly stated a goal for Canada to double its non-US exports by 2035.

Economic Realities

Despite this ambition, the US remains Canada’s dominant trading partner, currently purchasing approximately 75% of Canadian goods. China, while identified as Canada’s second-largest market, accounts for less than 4% of Canadian exports as of 2024.

Expert Insight: The pursuit of stronger ties with China, even while acknowledging the US’s continued economic importance, reflects a calculated risk by Prime Minister Carney. Diversifying trade relationships is a long-term strategy to mitigate the impact of potential future trade disputes and economic pressures from any single partner.

President Xi echoed Carney’s sentiment, stating that their previous meeting in October 2025 had “opened a new chapter” in China-Canada relations. Both leaders expressed a desire to restore cooperation and lower tariffs.

What’s Next?

Following meetings with Premier Li Qiang, Carney is scheduled to meet with Chinese business leaders to discuss potential trade opportunities. It is possible that further negotiations will focus on reducing existing tariffs and establishing clearer frameworks for bilateral trade. However, reaching a comprehensive agreement could be a lengthy process, dependent on ongoing discussions and evolving economic conditions. A continued warming of relations could lead to increased investment and collaboration in the identified key sectors of agriculture, energy, and finance. Conversely, any renewed geopolitical tensions or trade disputes could quickly stall progress.

Frequently Asked Questions

What prompted this visit by Prime Minister Carney?

The visit was prompted by a desire to reduce Canada’s reliance on the US as a primary trading partner, particularly in response to tariffs imposed by President Trump on Canadian goods.

What was the state of Canada-China relations prior to this visit?

Relations between Canada and China had been strained for years following the arrest of Meng Wanzhou in 2018 and China’s subsequent detention of two Canadians, leading to retaliatory tariffs and accusations of election interference.

What areas of cooperation were highlighted during the talks?

Agriculture, energy, and finance were identified as areas where immediate progress could be made in strengthening the “new strategic partnership” between Canada and China.

As Canada navigates a changing global landscape, how might balancing relationships with both the US and China shape its future economic and political strategies?

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