Phase of confrontation between China and Canada ended by high-level dialogue

China and Canada have opened a new chapter for more stable and healthy development in bilateral economic and trade relations, following the visit of Canadian Prime Minister Mark Carney and the relaunch of high-level dialogue mechanisms, experts and officials said.

From Jan 14 to 17, Carney made his inaugural visit to China since assuming office — it also marked the first trip by a Canadian head of government to the country in eight years.

The visit yielded substantial agreements between the two nations, with cooperation frameworks advanced across key sectors including agriculture, energy and manufacturing.

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This visit can be described as a substantive restart, marking the transition of China-Canada relations from a prolonged phase of confrontation and estrangement into a new cycle of engagement and dialogue, said Liu Dan, a researcher at the Center for Canadian Studies at Guangdong University of Foreign Studies.

"Bilateral relations are expected to embark on practical cooperation built on a foundation of high economic complementarity," Liu said.

During the prime minister's visit, the two countries signed the China-Canada Economic and Trade Cooperation Roadmap, which represents a milestone within the framework of a new strategic partnership. It also stands as the first high-level cooperative document in the history of bilateral economic and trade relations.

Pedro Antunes, chief economist at The Conference Board of Canada, said that the development holds positive implications for both nations.

China stands to gain from accessing high-quality Canadian agricultural products. For Canada, this represents a substantial benefit, Antunes said, adding that many agricultural producers in Western Canada would welcome this.

Regarding the prospects, the Canada China Business Council said the relevant economic and trade cooperation arrangements will create new development opportunities for enterprises in both countries and deepen bilateral investment relations in key areas.

This cooperation roadmap will bring opportunities to attract Chinese automobile manufacturers to invest and collaborate in Canada, said Bijan Ahmadi, executive director and chief operating officer of the Canada China Business Council.

As such, it is generating employment opportunities rather than placing pressure on Canadian workers, Ahmadi said. He noted that the bilateral investment relationship between the two countries is equally important, especially in the priority development areas currently identified. The two governments hope that the business community will focus on these areas and commit to building and strengthening bilateral relations.

Data from the General Administration of Customs showed, from January to November 2025, the total import and export value of goods trade between China and Canada reached 588.62 billion yuan ($84.74 billion). Of this, China's imports from Canada amounted to 273.87 billion yuan, while its exports to Canada totaled 314.75 billion yuan.

Data from the International Monetary Fund's World Economic Outlook report show that China and Canada are the world's second and 10th largest economies, respectively.

In a series of economic and trade consultations, China and Canada have achieved cooperation on new energy vehicles, breaking through previous trade barriers. The new Canadian government announced that it will allow up to 49,000 Chinese electric vehicles to enter the Canadian market each year at the preferential most-favored-nation rate of 6.1 percent, opening up new prospects for industrial collaboration between the two countries.

"This essentially serves as a critical signal of Canada's efforts to restore economic and trade cooperation with China. Canada's policy shift also reflects its recognition of China's leading edge in the new energy vehicle sector," wrote Jin Zhen, an assistant researcher at the Chongyang Institute for Financial Studies at Renmin University of China, in a commentary.

"Canada recognizes that building a competitive domestic electric vehicle industry requires collaboration with innovative partners like China, drawing on its advanced experience, integrating into its supply chains, and stimulating local market demand by introducing high-quality and affordable Chinese electric vehicles," Jin added. "Today, by choosing to embrace cooperation and opening its market in an orderly manner, Canada will not only enable its citizens to better enjoy the green benefits brought by Chinese new energy vehicles but also help accelerate the country's progress toward a net-zero emissions future."

In the January round of China-Canada economic and trade consultations, the two sides also achieved practical cooperation in the agricultural sector. Under the newly reached preliminary agreement, Canada has adjusted relevant unilateral measures toward China, while China has correspondingly introduced adjustments to agricultural product tariffs and trade remedy measures.

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China has tentatively agreed to reduce the comprehensive import tariff on Canadian rapeseed to approximately 15 percent, and it is reported that anti-dumping and countervailing measures on Canadian rapeseed meal, lobster, crab, peas, and other products will be lifted.

Guided by high-level engagement and institutional mechanisms, this round of China-Canada economic and trade consultations has delivered concrete results. The two sides have inked cooperation documents spanning law enforcement, trade, agriculture, forestry, construction, culture, tourism and energy.

According to an official from the Ministry of Commerce, both sides will continue to be guided by the important consensus reached by their leaders, jointly implement the hard-won consultation outcomes, expedite the finalization of details, establish clear timelines, formulate action plans, accelerate their respective domestic procedures, and work toward early implementation and tangible results.

Meanwhile, the two sides will fully leverage the China-Canada Joint Economic and Trade Commission mechanism to expand cooperation, resolve issues, manage differences, and promote the healthy, stable and sustainable development of China-Canada economic and trade relations, the official said.