Canada’s Prime Minister Mark Carney met with Chinese President Xi Jinping on Friday, marking the first time leaders from both countries have sat down for official talks in eight years. The meeting took place during the Asia Pacific Economic Cooperation summit in South Korea.
Carney told reporters on Saturday that people shouldn’t expect quick fixes from this single conversation. Instead, the goal was simply to restart dialogue at the highest level after such a long hiatus.
“What the meeting accomplished, which was the objective of the meeting, was to establish that relationship at the highest level for the first time in eight years, and to unlock a few things,” Carney said before heading back home.
The prime minister accepted an invitation from Xi to travel to China sometime in the new year. However, he refrained from commenting on when issues such as tariffs and travel restrictions between the two countries might be resolved.
“People sometimes simplify it down, to give this for that,” Carney explained. “That’s not the way it works.”
### Trade Disputes Between Canada and China
One of the major points of contention involves taxes placed on each other’s products. Last year, when Justin Trudeau was still prime minister, Canada imposed heavy tariffs on electric vehicles, steel, and aluminum imported from China. In response, China hit back by levying tariffs on Canadian food products, with canola being especially affected.
Canola represents a significant export for Canadian farmers selling to Asia, making these tariffs particularly impactful.
Carney expressed his desire to gradually open more opportunities for Canadian businesses in China. He highlighted clothing retailers such as Lululemon Athletica Inc. and Canada Goose Holdings Inc. as examples of companies that could benefit from improved trade relations.
However, he noted that some sectors, especially those involving cybersecurity technology, would likely continue to face investment restrictions due to security concerns.
### Walking a Careful Line on Electric Vehicles
When asked whether Canada would reconsider the 100% tariff imposed on Chinese electric vehicles, Carney did not provide a direct answer. He stated that the government would “proceed carefully” given the challenges facing the auto industry, likely alluding to tariffs imposed by U.S. President Donald Trump on Canadian cars entering the United States.
Still, Carney sees potential for cooperation between Canada and China in clean energy projects. He pointed out that Chinese companies lead the world in offshore wind power and battery storage technology.
“Some of the most competitive companies in the world are Chinese, in both offshore wind and in battery storage,” Carney said. “It’s a natural potential area for cooperation even before you get to EVs.”
### Complications with the United States
Canada also faces trade difficulties closer to home. Last week, President Trump announced he was ending trade discussions with Canada. This announcement came shortly after Ontario released an advertisement featuring audio from former President Ronald Reagan criticizing tariffs.
After speaking with Mark Carney, Ontario Premier Doug Ford decided to pause the advertising campaign on Monday to allow trade talks with the United States to resume. However, the ad continued to air during the World Series games over the weekend before the pause took effect.
“Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses,” Ford said. “We’ve achieved our goal, having reached U.S. audiences at the highest levels.”
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