Tue. Mar 10th, 2026

China Extends Olive Branch to Canada Amid Rising Trade Tensions

BEIJING — Chinese Premier Li Qiang called for renewed efforts to stabilize and strengthen China-Canada relations during a phone call with Canadian Prime Minister Mark Carney on Friday, signaling a shift in tone as both nations grapple with rising trade tensions.

According to state-run Xinhua news agency, Li emphasized that there is “no fundamental conflict of interest” between the two countries and expressed China’s willingness to work with Canada to “put ties on a healthy and stable path.”

The outreach follows months of strained trade relations between Beijing and several Western nations, including Canada. Earlier this year, China imposed tariffs on over $2.6 billion worth of Canadian agricultural and food products, in retaliation for Ottawa’s October 2024 levies on Chinese electric vehicles, steel, and aluminum.

In addition, China is currently conducting an anti-dumping investigation into Canadian canola — once a top Canadian export to China — with a final ruling expected in September.

Premier Li said the two sides should engage in enhanced dialogue to resolve differences and address mutual concerns. “The two governments should listen to and respond to the people’s calls and do more to deepen friendly cooperation and enhance mutual understanding and trust,” he told Carney.

The phone call also comes on the heels of a major conversation between U.S. President Donald Trump and Chinese President Xi Jinping, which Trump described as “very positive” and a possible turning point in the broader U.S.-China trade war.

For Canada, China remains its second-largest trading partner, behind only the United States. According to Chinese customs data, Canadian exports to China totaled $47 billion in 2024.

Li also reiterated China’s support for multilateralism and free trade, suggesting that Beijing hopes to reduce geopolitical friction ahead of the G7 Summit being hosted in Canada in mid-June. At last year’s summit in Italy, G7 leaders collectively criticized China’s economic practices and pledged to protect their markets from unfair competition.

As the Chinese economy continues to feel the weight of global trade frictions, Beijing’s outreach to Ottawa may mark the start of a cautious diplomatic thaw — though much will depend on how both sides navigate upcoming trade decisions and the broader G7 discussions.

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