In a significant diplomatic shift, Canadian Prime Minister Mark Carney has declared a "new strategic partnership" with China during a landmark state visit to Beijing, the first by a Canadian leader in eight years.
A Pivot East Amid Strained Western Ties
The visit, which included talks with President Xi Jinping on Friday in the Great Hall of the People, marks a concerted effort by Ottawa to turn the page on years of testy relations with Beijing. Carney stated that the two nations must build on their past to create a relationship "adapted to new global realities." He identified agriculture, energy, and finance as sectors ripe for immediate progress.
This diplomatic outreach is driven by an urgent economic imperative: reducing Canada's overwhelming reliance on the United States as a trading partner. The administration of US President Donald Trump has aggressively raised tariffs on key Canadian exports like steel, aluminium, vehicles, and lumber, inflicting mounting economic pain.
From Diplomatic Spat to Strategic Re-engagement
Relations between Canada and China had withered significantly since 2018, following Canada's arrest of Huawei executive Meng Wanzhou on a US warrant and Beijing's retaliatory detention of two Canadians on espionage charges. A series of tit-for-tat trade disputes and tariffs further soured the atmosphere, with China also facing accusations of electoral interference in Canada.
President Xi Jinping noted that relations reached a turning point during a meeting with Carney on the sidelines of the APEC summit in October 2025. "The healthy and stable development of China-Canada relations serves the common interests of our two countries," Xi said, expressing his gladness at recent discussions to restore cooperation.
Carney's visit, which also included a meeting with Premier Li Qiang, is the result of methodical calculation. The Canadian leader has previously stated that Canada should aim to double its non-US exports by 2035. However, the scale of the challenge is vast. In 2024, the US bought approximately 75% of Canadian goods, while China, Canada's second-largest market, purchased less than 4%.
The Long Road to Trade Diversification
While officials from both nations are in talks to lower tariffs and boost bilateral trade, a formal agreement remains elusive. The visit underscores a stark reality for traditional US allies: the need to cultivate alternative economic partnerships in an era of unpredictable American trade policy.
Carney's pivot to Beijing signals a pragmatic attempt to insulate the Canadian economy. Yet, as Ottawa stresses this new strategic direction, the fundamental asymmetry in trade relationships means that diversifying away from the US market will be a long-term and formidable undertaking.
