Canada, China poised for ‘Historic’ benefits under news partnership. Carney say
BEIJING: Canada and China are working toward a new strategic partnership that could deliver “historic” benefits by building on each other’s strengths, Canadian Prime Minister Mark Carney said during talks with Chinese President Xi Jinping on Friday.
Carney, the first Canadian prime minister to visit China since 2017, is seeking to reset relations with Canada’s second-largest trading partner after the United States. His visit follows months of diplomatic efforts aimed at easing earlier tensions between the two countries.
“At a time of global division, it is important to launch this new strategic partnership,” Carney told Xi, highlighting areas such as agriculture, agro-food, energy, and finance as sectors with the potential for “historic gains.”
“These are areas where we can make immediate and lasting progress,” he added.
Push to Strengthen Ties after U.S. Tariffs
Canada’s outreach to Beijing comes as it looks to diversify economic ties following U.S. President Donald Trump’s decision to impose tariffs on certain Canadian goods, along with remarks suggesting Canada could become the United States’ 51st state.
China, which has also been affected by U.S. tariffs since Trump returned to office last year, is eager to deepen cooperation with a Group of Seven country within a region traditionally influenced by Washington.
“I look forward to continuing our cooperation with a strong sense of responsibility to history, our peoples, and the world, and to further improve China-Canada relations,” Xi told Carney.
Analysts say closer ties between Ottawa and Beijing could influence the broader dynamics of Sino-U.S. rivalry, although Canada is unlikely to significantly distance itself from Washington.
“Canada remains a core U.S. ally and is deeply integrated into American security and intelligence frameworks,” said Sun Chenghao, a fellow at Tsinghua University’s Centre for International Security and Strategy. “A strategic realignment away from the United States is therefore highly unlikely.”
However, he noted that a more pragmatic and independent Canadian economic approach toward China could allow Beijing to argue that U.S.-led economic decoupling is neither inevitable nor universally supported, even among America’s closest allies.
Near-Term Challenges Remain
Despite renewed momentum, several trade disputes continue to weigh on the relationship.
In 2024, the government of former Prime Minister Justin Trudeau imposed tariffs on Chinese electric vehicles, mirroring similar measures taken by the United States. Ottawa argued that Chinese manufacturers benefited from state subsidies that created unfair competitive advantages and threatened Canada’s auto industry.
China responded in March with tariffs on more than $2.6 billion worth of Canadian agricultural and food products, including canola oil and meal, and later extended duties to canola seed in August. As a result, China’s imports of Canadian goods fell by 10.4% in 2025.
Talks aimed at resolving the tariff disputes are ongoing, Canada’s industry minister said in Beijing on Thursday.
Source: Reuters
