GYEONGJU, South Korea — Prime Minister Mark Carney said his meeting with Chinese President Xi Jinping on Friday marked a “turning point” in the long-strained relationship between Canada and China, even though no breakthrough was reached on trade disputes that have burdened the two nations for years.
The two leaders spoke privately for nearly 40 minutes on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. While the discussions produced no immediate changes to the heavy tariffs on Canadian exports, Carney said he left the meeting “very pleased” with the tone and outcome.
“We now have a turning point in the relationship — one that creates opportunities for Canadian families, for Canadian businesses, and for Canadian workers,” Carney told reporters. “It also creates a path to address current issues.”
Carney said Xi formally invited him to visit China, which he accepted, hinting the trip may coincide with the 2026 APEC summit that Beijing will host. The meeting was the first between leaders of the two nations since 2017, when Justin Trudeau visited Beijing.
Trade Disputes Linger Despite Warmer Tone
Canadian industries, including canola producers, seafood exporters, and pork farmers, continue to face steep Chinese tariffs imposed in retaliation for Canada’s 100 per cent levies on Chinese electric vehicles, batteries, and other goods last year.
China’s ambassador in Ottawa has signalled Beijing is open to dropping its trade barriers if Canada lifts the EV tariffs — an offer Carney’s government has not yet accepted.
An official readout from the Prime Minister’s Office said both leaders directed officials “to move quickly to resolve outstanding trade issues and irritants,” with particular focus on canola, seafood, and electric vehicles.
Carney’s approach reflects a notable shift from the Trudeau government’s 2019 Indo-Pacific strategy, which labelled China a “disruptive global power.” Now, under Carney’s leadership, China is being reclassified as a “strategic partner” — part of Canada’s broader push to diversify trade beyond the U.S.
Repairing a Strained Relationship
Canada-China relations hit rock bottom in 2018, following Canada’s arrest of Huawei executive Meng Wanzhou at Washington’s request. In retaliation, China detained Canadians Michael Kovrig and Michael Spavor — in what Ottawa condemned as arbitrary imprisonment.
Tensions further escalated in 2022, when Xi publicly scolded Trudeau at the G20 summit for allegedly leaking diplomatic discussions. More recently, Canada’s foreign interference inquiry described China as the “most active perpetrator” targeting Canadian democratic institutions — a claim Beijing has vehemently denied.
In early 2025, China’s execution of four Canadian dual citizens over drug charges reignited tensions, though Ottawa’s response was measured.
From Confrontation to Pragmatism
Carney’s tone toward Beijing has softened noticeably in recent months. After calling China “the biggest security threat” in April, he later emphasized its “sincerity and engagement” on climate change and energy collaboration, describing it as “a country run by engineers.”
Still, Carney stressed that projects with national security implications, including Arctic research, remain off-limits for Chinese involvement.
Both Carney and Xi publicly endorsed a commitment to uphold the rules-based international order, though analysts note their definitions of that principle differ sharply.
Looking Ahead
While the meeting produced no tangible trade deal, observers say the tone of constructive engagement marked a significant thaw after years of diplomatic frost.
As Foreign Affairs Minister Anita Anand told MPs this week:
“Diplomacy is not walking away from tough issues. It’s about having the conversation — firmly, directly — about Canadian interests and Canadian values.”
Carney’s next test will be whether Friday’s handshake in Gyeongju can pave the way for a sustainable reset with the world’s second-largest economy — one that balances economic opportunity with national security vigilance.