Canada's Prime Minister Mark Carney accepted an invitation to visit China extended by President Xi Jinping, signalling a turning point in the countries' relationship.
The invite came after the two leaders met for 40 minutes on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit on Friday. It was the first meeting between a Canadian prime minister and the Chinese president since 2017.
The countries have had a strained relationship since a diplomatic row in 2018 and been locked in a trade dispute since 2024.
But as trade tensions between Canada and the US continue to rise, Carney has said the country will turn to strengthening its ties with other major economies.
He has signalled his desire to double Canada's non-US exports in the next decade, in response to President Donald Trump placing punishing tariffs on Canadian goods and some of its critical sectors.
That includes closer trade ties with the economic giants of Asia, Carney said last week.
Speaking briefly to reporters after his meeting with Xi on Friday, Carney said he believes Canada and China have hit a turning point in relations that will yield positive developments for the Canadian economy.
Distance is not the way to solve problems, not the way to serve our people, the prime minister said.
In his own remarks, Xi said China is willing to work with Canada to push China-Canada relations back onto a healthy, stable, and sustainable correct track that benefits both countries.
The two leaders directed their officials to move quickly to resolve outstanding trade issues and irritants, according to a readout released by Carney's office after the meeting.
A 'two-front trade war' with China and the US
A trade dispute has been escalating since Canada placed a 100% tariff on Chinese electric vehicles (EVs) in October 2024, mirroring similar action by the US. Later that same month, Canada placed a 25% tariff on Chinese steel and aluminium.
China retaliated in March by imposing tariffs on several Canadian agricultural products, including a 76% levy on Canadian canola seed imports and a 100% levy on canola oil, meal and peas.
These measures have hurt farmers in the western part of Canada, as China is by far the largest importer of the country's canola seeds.
Some western provincial premiers have since called on the federal government to drop tariffs on Chinese EVs. Manitoba Premier Wab Kinew stated that Canada has now found itself in a two-front trade war with its two largest trading partners — the US and China.
Separately, the US has imposed a 35% tariff on all Canadian goods not covered by an existing free trade agreement, along with a 50% levy on steel and aluminium and a 25% levy on automobiles.
Last week, US-Canada relations hit a new low after Trump suspended all trade talks over an anti-tariff advertisement run by Ontario Premier Doug Ford that featured an address on free trade by former US President Ronald Reagan.
Trump has threatened to raise tariffs on Canada another 10%, though it is unclear if and when that would come into effect.
Prior to the tariffs, Canada-China relations were already reeling from a diplomatic row that resulted in Beijing detaining two Canadian citizens, Michael Spavor and Michael Kovring.
Both were accused by China of espionage after Canada detained Huawei's Meng Wanzhou at the US’s request.
Ultimately, all three individuals were released in 2021 when the US Department of Justice dropped its extradition request against Meng.
China was also implicated in potential interference in Canada’s elections, though investigations found the impact to be minimal.
Carney's APEC meeting with Xi follows Xi’s recent meeting with Trump, indicating a broader context of global trade relations.
