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Carney Hails 'New Strategic Partnership' With China as Talks Focus on Trade Diversification

Carney Hails 'New Strategic Partnership' With China as Talks Focus on Trade Diversification
Canada's Prime Minister Mark Carney (C) arrives for meeting with Chinese President Xi Jinping at the Great Hall of the People in Beijing (Vincent Thian)(Vincent Thian/POOL/AFP)

Mark Carney described talks with President Xi Jinping as launching a "new strategic partnership," marking the first visit by a Canadian leader to China in eight years. Both sides emphasized restoring cooperation after years of diplomatic fallout from the 2018 arrests and retaliatory trade measures. Carney singled out agriculture, energy and finance for near-term cooperation while reiterating Canada's goal to diversify trade away from heavy U.S. dependence.

Canada's leader Mark Carney on Friday described a "new strategic partnership" with Beijing after meeting President Xi Jinping — the first visit by a Canadian leader to China in eight years.

Speaking in the Great Hall of the People, 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."
He added that "engagement and cooperation" would be "the foundation of our new strategic partnership," and highlighted agriculture, energy and finance as areas where immediate progress is possible.

Xi welcomed the outreach, saying their previous meeting on the sidelines of last year’s APEC summit had "opened a new chapter" and that the "healthy and stable development of China–Canada relations serves the common interests of our two countries." He said Beijing was "glad" to see recent discussions aimed at restoring cooperation.

Background

Ties between Ottawa and Beijing frayed in 2018 after Canada arrested the daughter of Huawei's founder on a U.S. warrant and China detained two Canadians on espionage charges in apparent retaliation. The fallout included reciprocal tariffs and allegations of election interference, straining diplomatic and trade links.

Carney’s visit is part of a broader Canadian effort to reduce heavy reliance on the United States after steep U.S. tariffs on steel, aluminium, vehicles and lumber prompted Ottawa to seek new markets. In October, Carney said Canada should aim to double its non-U.S. exports by 2035.

Despite that goal, the United States remained by far Canada’s largest market in 2024, purchasing roughly 75% of Canadian goods; China accounted for under 4% of Canadian exports that year. Officials from both countries continue negotiations to lower tariffs and expand bilateral trade, but no agreement has been finalized.

Note: The official title and role of Mark Carney in this report should be verified; he is widely known internationally as a former central bank governor.

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