Chinese Premier Li Qiang embraced Canadian Prime Minister Mark Carney upon his arrival in Beijing on Thursday, expressing that this visit represents a “new starting point” for the previously tense relationship between the two nations.
“From this new starting point, China is eager to collaborate with Canada to uphold a strategic partnership, enhance dialogue and communication, build political trust, respect each other’s core interests, find common ground while setting aside differences, and continuously broaden practical cooperation to further promote the development of both countries,” Li remarked.
Li noted that the recent improvement in relations was a result of concerted efforts from both sides, emphasizing China’s readiness to pursue “stable growth in bilateral trade,” particularly in fields like digital technology and agriculture.
“China is prepared to bolster cooperation with Canada through platforms such as the United Nations, the World Trade Organization, the G20, and the Asia-Pacific Economic Cooperation. Together, we can advocate for multilateralism and free trade, enhance global governance, and strive for a more equitable international order,” Li added.
In response, Carney declared that Canada is “eager to increase dialogue with China across various sectors based on mutual respect, utilizing complementary strengths, and advancing collaboration in areas like economy, trade, energy, the green economy, agriculture, and cultural exchanges.”
“We welcome Chinese companies to invest and operate in Canada, and Canadian businesses are confident about deepening ties with their Chinese counterparts,” he stated.
Both leaders concurred on the importance of supporting the United Nations and championing multilateralism. Li reiterated China’s commitment to establishing a “fair and just” international order.
Relations between China and Canada deteriorated after Canada’s arrest of Meng Wanzhou in 2018 on allegations of financial crimes in the U.S., leading to China detaining several Canadians and exerting significant pressure on Canada for Meng’s release.
During his campaign for prime minister, some questioned Carney’s business ties to China, but he managed to convince voters that he had no conflicts of interest and regarded China as a major security threat. Yet, during his first visit to Beijing since 2017, there seemed to be little sign of that skepticism.
After engaging in tariff disputes with President Trump, it became evident that Carney aimed to broaden Canada’s trade relations.
Canada’s steel, aluminum, and auto sectors faced severe challenges due to U.S. tariffs, and talks to ease these tariffs between Ottawa and Washington have stalled. A free trade agreement among the U.S., Canada, and Mexico allows most Canadian goods to enter the U.S., but this agreement is due for review this year, leaving its future uncertain. Trump has suggested that Canada could potentially become a U.S. state, raising concerns in Ottawa about its significant economic reliance on the U.S.
In light of this, Canada aims to double its exports outside the U.S. over the next decade.
Carney mentioned via social media that he hopes to lessen dependency on the U.S., which is Canada’s largest trading partner.
“China ranks as our second largest trading partner and is the second largest economy globally. A pragmatic and constructive relationship between our nations will foster greater stability, security, and prosperity on both sides of the Pacific,” he said.
On Friday, Carney made a notable shift in U.S. trade policy following talks with Chinese leader Xi Jinping, which included an agreement to eliminate China’s tariffs on electric vehicles (EVs) entirely.
In a bid to prevent Chinese competition from flooding the Canadian EV market with low-cost vehicles, Carney proposed instead to cap annual imports of Chinese EVs at 49,000, with plans to raise that cap to 70,000 over five years.
He also noted that China agreed to reduce tariffs on Canadian canola from 84% to 15% in return for the cancellation of tariffs on EVs. Although canola is a key agricultural export for Canada, its export volume is projected to decline, especially with China imposing a 100% tariff on it by 2025.
Ontario Premier Doug Ford criticized Carney’s firm approach toward EVs, suggesting it could lead to an influx of inexpensive Chinese EVs without ensuring reciprocation in investment in Canada’s economy and auto sector.
Ford warned that Carney’s arrangement with China might close off access to the American market for Canadian automakers.
Carney acknowledged that he perceives communist China as a “more predictable” trading partner than the U.S. and commended Beijing’s “realistic and respectful” approach.
President Xi referred to Canada as a junior partner within this newly formed “strategic partnership,” subtly indicating that criticism of China’s human rights issues was off the table and expressing hope that Canada would remove barriers to China’s “quality development.”
Carney appeared receptive to these expectations, stating his intention to adopt a more “pragmatic” stance in future dealings with Beijing while dodging inquiries about his previous critiques of China’s practices like forced labor. He noted that while he had addressed human rights in private conversations with Chinese officials, he no longer saw the value in public discussions on these topics.
“We take the world as it is, not as we wish it to be,” he remarked.
