Canadian Prime Minister Mark Carney to Visit China to Boost Trade

Canadian Prime Minister Mark Carney will travel to China next week to meet President Xi Jinping. This marks the first visit by a Canadian leader in over eight years. The trip is part of Ottawa’s plan to diversify trade and reduce dependence on the United States amid ongoing economic tensions. Carney will attend the World Economic Forum in Davos after the China visit.

Carney’s Visit Reflects Shift in Canada’s Trade Focus

Carney will be in China from January 13 to 17, following an invitation from Xi Jinping during an Asia-Pacific summit in October. The visit comes as Canada works to rebuild and strengthen ties with its second-largest trading partner.

“We’re forging new partnerships around the world to transform our economy from one that relied on a single trade partner to one that is stronger and more resilient to global shocks,” Carney said Wednesday.

The trip aligns with Canada’s goal of doubling exports outside the U.S. over the next decade. It also comes ahead of this year’s review of the United States–Mexico–Canada Agreement, which governs most of Canada’s cross-border trade. Currently, more than 75% of Canadian exports go to the United States.

Past Strains in Canada–China Relations

Relations between Canada and China worsened in late 2018 after Canadian authorities arrested Huawei executive Meng Wanzhou at the U.S. request. In retaliation, China detained two Canadian citizens, triggering a multi-year diplomatic dispute.

Tensions resurfaced in 2024 when Canada imposed a 100% tariff on electric vehicles, batteries, and other Chinese goods, following similar U.S. measures. China responded with tariffs that have affected Canadian canola, seafood, and pork exports, increasing pressure on Ottawa to diversify trade.

Opportunities for Trade Negotiations

China has signaled it may remove some import taxes on Canadian products if Canada lifts the electric vehicle tariffs. Analysts say Carney’s visit could offer a chance to negotiate measures that help Canadian exporters while easing bilateral trade tensions.

After his trip to China, Carney will attend the World Economic Forum in Davos from January 19 to 21. There, he will join discussions on global economic trends and international trade challenges.