BEIJING, CHINA – In his first visit to China since taking office, the first by a Canadian Prime Minister in eight years, Prime Minister Mark Carney used a week of high-level meetings in Beijing to signal a reset in Canada’s relationship with its second-largest trading partner, as Ottawa looks to diversify trade and shore up its economy and gain some degree of stability amid growing global uncertainty.

Since Prime Minister Justin Trudeau’s visit in 2017, the relationship between the two countries has been defined largely by diplomatic strain and trade disruptions. This time, the tone was pragmatic. Over several days, Carney met with Chinese President Xi Jinping, Premier Li Qiang and Zhao Leji, chair of the Standing Committee of the National People’s Congress. The meetings culminated in a joint statement outlining what both sides described as a new strategic partnership.

“At its best, the Canada-China relationship has created massive opportunities for both our peoples,” Carney said following his meeting with Xi. “By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations.”

At the centre of the renewed engagement is an effort to expand cooperation in energy, clean technology and climate-related industries. Canada and China, both major energy producers, agreed to pursue closer collaboration aimed at reducing emissions while increasing investment in batteries, solar and wind power, and energy storage. During the visit, Carney also met with Chinese business leaders to encourage investment in Canadian clean-tech and energy projects.

One of the most closely watched elements of the talks is a new arrangement governing Chinese electric vehicles entering the Canadian market. Under the agreement, Canada will allow up to 49,000 Chinese-made EVs to be imported annually at a most-favoured-nation tariff rate of 6.1 per cent. The volume reflects pre-trade dispute levels from 2023–24 and represents less than three per cent of Canada’s annual new vehicle market.

Federal officials say the goal is not only to broaden consumer choice but to encourage joint-venture manufacturing in Canada. Ottawa expects that within three years the agreement will lead to new Chinese investment in domestic auto production, supporting jobs and strengthening Canada’s EV supply chain. Within five years, more than half of the imported vehicles are expected to be priced under $35,000, a move aimed at addressing affordability concerns for Canadian consumers.

Agriculture and agri-food exports also featured prominently in the talks. China remains Canada’s second-largest export market, and the two sides reached a preliminary agreement to reduce tariffs and ease trade barriers that have weighed heavily on Canadian producers in recent years.

By March 1, 2026, China is expected to lower tariffs on Canadian canola seed to roughly 15 per cent, down from combined rates that had reached about 85 per cent. China represents a $4-billion market for Canadian canola, making the change particularly significant for Prairie farmers. Ottawa also expects that canola meal, lobsters, crabs and peas will be exempt from certain anti-discrimination tariffs through at least the end of 2026.

Taken together, federal officials estimate the measures could unlock close to $3 billion in new export orders, tapping into China’s vast consumer market of 1.4 billion people.

Looking ahead, Canada has set a target of increasing exports to China by 50 per cent by 2030, focusing on clean energy and technology, agri-food, wood products and advanced manufacturing. Both countries also committed to deeper cooperation on multilateral issues, including climate competitiveness and global financial stability. Canada confirmed it will support China’s presidency of the Asia-Pacific Economic Cooperation forum in 2026, while Beijing reiterated its backing of Canada’s bid to host the APEC summit in 2029.

Public safety and security were also part of the discussions. Canadian and Chinese officials agreed to expand cooperation between law enforcement agencies to address narcotics trafficking, cybercrime, synthetic drugs and money laundering.

The visit extended beyond economics and security into cultural and people-to-people ties. Ottawa welcomed new initiatives aimed at boosting tourism and cultural exchanges, including partnerships involving museums, digital creators and visual artists. Carney also endorsed a new agreement between Destination Canada and China Media Group to encourage travel to Canada ahead of the 2026 FIFA World Cup, which Canada will co-host. China, for its part, committed to introducing visa-free access for Canadians travelling there.

China is currently Canada’s second-largest single-country trading partner, with $118.9 billion in two-way merchandise trade recorded in 2024. Canadian exports totalled $30 billion, while imports reached $88.9 billion. China is also Canada’s second-largest customer for agriculture, forestry and seafood products, accounting for approximately $13.4 billion in sales last year.

While challenges remain in a complex bilateral relationship, Carney’s visit appears designed to reopen channels that had narrowed over the past decade. The prime minister is expected to return to China next year for the 2026 APEC Leaders’ Summit, as both countries test whether renewed engagement can translate into lasting economic and diplomatic gains.