Prime Minister Mark Carney is preparing for a crucial meeting with Chinese President Xi Jinping on Friday during a summit in South Korea — the first formal encounter between leaders of the two nations in nearly a decade. Carney says the talks will go “well beyond trade,” signaling a potential thaw in one of Canada’s most strained diplomatic relationships.
The last high-level meeting dates back to 2017 when then–Prime Minister Justin Trudeau visited Beijing. Relations later collapsed after Canada’s arrest of Huawei executive Meng Wanzhou at the request of the U.S., which led to China’s retaliatory detention of Canadians Michael Kovrig and Michael Spavor. A tense 2022 G20 exchange between Xi and Trudeau underscored how far ties had deteriorated.
Now, Carney’s upcoming meeting comes at a moment of cautious diplomacy and shifting global alliances. Trade, security, and climate cooperation are all on the table.
At the top of the agenda is the escalating tariff war. Canada imposed a 100 per cent tariff on Chinese electric vehicles last year, following Washington’s lead, prompting Beijing to retaliate with new tariffs on Canadian canola, seafood, and pork. Some Canadian premiers want Carney to ease the levies, but Ontario insists they’re vital to protect domestic auto manufacturing and Canada’s green economy transition.
Environmental cooperation may serve as a bridge amid the friction. Carney recently said Canada could “engage deeply” with China on climate issues, calling the country “run by engineers” who take environmental innovation seriously. Both nations co-hosted a major UN biodiversity summit in Montreal in 2022, showing that cooperation remains possible despite political headwinds.
The meeting will also touch on growing security concerns. A federal inquiry this year identified China as “the most active perpetrator of foreign interference” in Canada’s democratic institutions, echoing earlier warnings from CSIS about Beijing’s cyber and disinformation activities. China has rejected these allegations as unfounded. Ottawa passed a law in 2024 paving the way for a foreign influence registry, though it has yet to be implemented.
Consular and human rights cases remain a flashpoint. China executed four Canadian dual citizens earlier this year, and Abbotsford native Robert Schellenberg remains on death row. Opposition MPs are urging Carney’s government to grant honorary citizenship to Hong Kong publisher Jimmy Lai, who has been jailed under China’s sweeping national security law.
Beijing is also expected to press Canada on its growing engagement with Taiwan and its participation in joint naval exercises through the Taiwan Strait — a move China views as provocative. Meanwhile, both countries are eyeing Arctic development, with Canada’s recent foreign policy paper cautioning that China’s Arctic research often carries “dual-use” military potential.
Despite these tensions, Foreign Affairs Minister Anita Anand has described China as a “strategic partner” — a striking shift from Canada’s 2022 Indo-Pacific strategy that labeled Beijing a “disruptive global power.” The new approach, she said, seeks dialogue rather than division, focusing on cooperation where possible.
Carney, for his part, says the conversation will explore “the evolution of the global system,” including reforming international institutions like the United Nations and tackling global debt and climate challenges.
Beijing has also extended an olive branch, stating its desire to “rebuild mutual trust” and “enhance understanding” with Canada through “mutual respect.” Carney is expected to visit China again next year for the APEC summit, marking what could be the start of a slow but significant diplomatic reset between Ottawa and Beijing.