Xi lauds ‘turnaround’ with key US neighbor

Canada has sought a rapprochement with Beijing amid tensions between Ottawa and Washington

Chinese President Xi Jinping has welcomed what he called a “turnaround” in relations with Canada, following a meeting with Canadian Prime Minister Mark Carney in Beijing.

While campaigning for office in April 2025, Carney claimed that China represented the number one security threat to Canada on the global stage. However, US President Donald Trump’s stance on nearby countries has prompted a re-think in Ottawa.

Trump, who has repeatedly suggested that Canada could become the 51st US state, has accused the Canadian government of taking advantage of America and slapped hefty tariffs on the neighboring country.

After the first direct talks between a Chinese and a Canadian leader in eight years, Carney said “Together we can build on the best of what this relationship has been in the past to create a new one adapted to new global realities.” Agriculture, energy and finance should form “the foundation of our new strategic partnership,” he suggested.

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Xi echoed the sentiment, saying Beijing and Ottawa had held “in-depth discussions on resuming cooperation” and achieved positive outcomes.

During Carney’s visit, the sides signed an initial deal that will slash tariffs on electric vehicles and canola seeds, while vowing to make further steps to relax trade barriers.

Canada has agreed to allow China to deliver up to 49,000 electric vehicles to the country at a tariff of 6.1%. The previous duty on Chinese-made EVs, imposed by then-Prime Minister Justin Trudeau in 2023, was 100%.

Relations between the two nations soured in 2018 after Ottawa arrested a chief financial officer of Chinese tech giant Huawei on a US warrant. Beijing responded by detaining two Canadian citizens on espionage charges. This was followed by the reciprocal imposition of tariffs and accusations by Canada of election meddling, which China called “ridiculous.”

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Carney said in October that Ottawa should double its non-US exports by 2035 in order to reduce its dependence on Washington, which remains its main trading partner.