In a significant diplomatic shift, Canadian Prime Minister Mark Carney has heralded a "new strategic partnership" with China during a rare state visit to Beijing, seeking to reset years of strained relations and reduce Canada's overwhelming economic dependence on the United States.
A Pivot to New Global Realities
Carney held talks with Chinese President Xi Jinping on Friday in the Great Hall of the People, marking the first visit by a Canadian leader to China in eight years. Addressing President Xi, Carney stated that the two nations could "build on the best of what this relationship has been in the past to create a new one adapted to new global realities". He identified agriculture, energy, and finance as sectors where immediate progress could be made.
This outreach follows a period of severe diplomatic friction, notably the 2018 arrest of Huawei executive Meng Wanzhou in Canada on a US warrant and China's subsequent retaliatory detention of two Canadians on espionage charges. A series of tit-for-tat trade disputes further soured the relationship.
Driven by US Trade War Pain
The impetus for Carney's pivot is deeply rooted in economic necessity. The visit speaks directly to the pain inflicted by a trade war with the United States under the Trump administration, which aggressively raised tariffs on Canadian steel, aluminium, vehicles, and lumber.
President Xi, welcoming the Canadian leader, remarked that relations reached a turning point during their last meeting on the sidelines of the APEC summit in October 2025. "The healthy and stable development of China-Canada relations serves the common interests of our two countries," Xi said, expressing his gladness at recent discussions to restore cooperation.
Canadian government statistics underscore the urgency: in 2024, the US bought around 75% of all Canadian goods exports, while China, Canada's second-largest market, accounted for less than 4%. In October, Carney set a goal to double Canada's non-US exports by 2035.
Path Forward and Challenges
During his visit, which also included a meeting with Premier Li Qiang and scheduled talks with business leaders, Carney emphasised that engagement and cooperation would be the foundation of the new bilateral framework. Officials from both countries have been negotiating to lower tariffs and boost trade, though a final agreement remains elusive.
While Beijing has expressed a willingness to get relations back "on the right track", the path is complex. Historical grievances, including allegations of Chinese interference in Canadian elections, cast a long shadow. Nevertheless, Carney's methodical diplomatic mission signals a clear intent to diversify Canada's trade links in the face of volatile US policy, a strategic calculation with significant implications for global trade dynamics.
