Beijing Meeting Signals Shift in China–Canada Trade Relations
China and Canada have announced a reduction in tariffs following a meeting between Chinese President Xi Jinping and Canadian Prime Minister Mark Carney in Beijing. The agreement marks a notable easing of trade tensions after several years of strained relations.
According to Carney, China will reduce tariffs on Canadian canola oil from 85 percent to 15 percent beginning March 1. In return, Canada will apply a 6.1 percent tariff on Chinese electric vehicles, aligning with its most-favored-nation rate.
Tariff Adjustments Address Key Trade Disputes
The revised trade terms follow a period of reciprocal tariffs between the two countries.
Key elements of the agreement include:
- Reduced Chinese tariffs on Canadian canola oil
- Lower tariffs on Canadian exports such as lobster, crab, and peas
- A cap allowing 49,000 Chinese electric vehicles into Canada at the reduced tariff rate
Canadian officials said the vehicle cap reflects concerns from domestic automakers about competition from lower-cost imports.
Trade Diversification a Priority for Ottawa
Carney’s visit was his first to China since taking office and the first by a Canadian leader in nearly a decade. The trip comes as Canada seeks to diversify trade relationships amid uncertainty surrounding U.S. tariff policy.
Speaking to reporters, Carney said Canada’s engagement with China had become more predictable in recent months. He described discussions with Chinese officials as direct and respectful while emphasizing that differences remain.
Investment and Cooperation Discussed
During the visit, Carney met with senior executives from major Chinese companies, including firms in the energy and electric vehicle battery sectors. Canada and China also signed several agreements focused on energy and trade cooperation.
China remains Canada’s second-largest trading partner, though trade volume remains significantly lower than with the United States.
Acknowledging Differences Between the Two Countries
Carney stated that Canada does not align with China on all issues. He said discussions included Canada’s positions on human rights, election integrity, and the need for clearly defined boundaries in bilateral cooperation.
He also noted that China and Canada operate under different political systems, which limits the scope of their partnership.
Context of a Strained Relationship
Relations between the two countries deteriorated after the 2018 arrest of a senior Chinese technology executive in Canada, followed by China’s detention of two Canadian citizens. All individuals were released in 2021.
The current agreement is viewed by observers as a pragmatic reset rather than a full restoration of relations.
Broader International Implications
Analysts note that China has recently hosted several Western leaders as Beijing seeks to present itself as a stable and pragmatic trade partner amid global economic uncertainty.
Canadian officials said future engagement with China would remain targeted and focused on specific areas of cooperation.
Related Coverage
- Idaho News – https://idahonews.co/idaho-news-3/
- National News – https://idahonews.co/national-news/
- Global News – https://idahonews.co/global-news/
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