Canada's Prime Minister Mark Carney accepted an invitation to visit China extended by President Xi Jinping, signaling 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 have been locked in a trade dispute since 2024.
But as trade tensions between Canada and the US continue to rise, Carney has stated his intention to strengthen ties with other major economies.
He has signaled his desire to double Canada's non-US exports in the next decade, particularly in response to President Trump's punitive tariffs on Canadian goods.
After meeting with Xi, Carney expressed optimism about a turning point in relations, highlighting that distance is not a solution to the posed problems.
Xi echoed this sentiment, stating that China wishes to collaborate with Canada to restore relations on a healthy and stable track.
The two leaders have directed their officials to act swiftly on outstanding trade issues.
A 'two-front trade war' with China and the US
Canada's trade dispute began escalating in October 2024 when it instituted a 100% tariff on Chinese electric vehicles, which was reciprocated by China imposing tariffs on Canadian agricultural products.
Farmers, particularly in western Canada, have faced significant repercussions due to these tariffs, sparking calls from provincial premiers to reconsider the stance on Chinese EV tariffs.
As tensions mount, Canada's economy appears to be at a crossroads, necessitating new partnerships and a reevaluation of longstanding trade relationships.
