Summary:
Canada and China are seeking to reset ties through a new strategic partnership
PM Mark Carney says cooperation could deliver “historic” economic gains
Focus areas include agriculture, energy, agri-food and finance
Canada is diversifying trade amid tensions with the United States
China is also looking to counter U.S. tariff pressure through new partnerships
Canada and China are seeking to reset and deepen their bilateral relationship, with Canadian Prime Minister Mark Carney describing the potential gains from renewed cooperation as “historic” during talks with Chinese President Xi Jinping.
Carney’s visit marks the first trip to China by a Canadian prime minister since 2017 and represents a significant diplomatic step after years of strained relations. Speaking to Xi, Carney said the two countries were laying the groundwork for a new strategic partnership at a time of global division, arguing that closer cooperation could deliver immediate and lasting benefits by building on each country’s strengths.
He highlighted sectors such as agriculture, agri-food, energy and finance as areas where collaboration could generate meaningful economic gains. Carney said these fields offered scope for rapid progress and sustained engagement, signalling a pragmatic approach focused on trade and investment rather than broader geopolitical disputes.
The outreach comes as Canada looks to diversify its trade relationships amid growing uncertainty in its ties with the United States. Washington remains Canada’s largest trading partner, but relations have been tested after U.S. President Donald Trump imposed tariffs on some Canadian goods and made comments questioning the long-standing alliance between the two countries. Amd threatened to invade and annex the country. Those moves have sharpened Ottawa’s interest in strengthening links with other major economies, including China, Canada’s second-largest trading partner.
For Beijing, the timing is also significant. China has faced renewed trade pressure from the United States since Trump’s return to the White House, with tariffs again weighing on exports and investor sentiment. Closer engagement with a Group of Seven economy such as Canada offers China an opportunity to deepen ties within a traditional sphere of U.S. influence and underscore its commitment to multilateral economic cooperation.
While Carney’s remarks emphasised economic opportunity, the path forward is unlikely to be frictionless. Past tensions over trade, technology and diplomatic disputes remain in the background. Still, both sides appear keen to stabilise relations and pursue areas of mutual benefit, particularly as global trade becomes increasingly fragmented.
The talks signal a tentative but notable shift in Canada–China relations, suggesting both governments see strategic value in closer cooperation as they navigate a more contested global economic landscape.
