Mark Carney’s visit to China | “A turning point” in relations between Canada and China

Beijing — Canada and China moved to restore regular dialogue on Thursday, signing a fresh set of memoranda of understanding (MOUs) while leaving tariffs on key goods unresolved. The renewed engagement comes as Prime Minister Mark Carney arrives in the Chinese capital to re-energize ties after nearly a decade of cooler diplomacy.

A ceremonial welcome greeted Carney at the Palace of the People’s Assembly, with a long guard of honor and a marching band as Canada’s national anthem echoed through the marble halls. Saskatchewan Premier Scott Moe joined the Canadian delegation and took part in meetings with Chinese Premier Li qiang.

The Canadian team included five ministers: Mélanie Joly (Industry), Anita Anand (Foreign Affairs), Tim Hodgson (Natural Resources), Heath MacDonald (agriculture), and Maninder Sidhu (International Trade). Their Chinese counterparts were led by Premier Li Qiang, as the two sides sought to revive trade channels and collaboration on mutual interests.

The two sides signed MOUs covering energy, British Columbia lumber, crime prevention, culture, and pet-food safety. The energy pact, in particular, recognizes Canada as “an crucial potential partner” for responsible and reliable oil production, signaling a priority for deeper energy ties alongside broader commercial ties.

Earlier in the day, Chinese Foreign Minister Wang Yi described Carney’s visit as a turning point for bilateral ties during talks with Canada’s Anita Anand. Wang said the three-day schedule of talks would offer new perspectives as global conditions shift, stressing that the relationship extends beyond simple bilateral concerns and should avoid disruption while expanding cooperation.

Carney also held meetings with major Chinese business and financial leaders, including CATL (a global EV battery giant), Alibaba, China National Petroleum corporation, and the Industrial and Commercial Bank of China (ICBC). The discussions underscore trade as a central axis as Canada seeks to diversify its export markets amid US-led global shifts.

Canada has set ambitious goals for outward growth. Officials say Canada aims to double exports outside the United States to about $600 billion over the next decade and attract roughly $1 trillion in new investment by 2030, with energy projects a key pillar of that plan. In 2024, Canada’s trade with China totaled about $119 billion, with roughly $30 billion in exports to China and nearly $89 billion in imports from China.

During the visit, Carney is scheduled to meet Zhao leji, chairman of the Standing Committee of China’s National People’s Congress, and then Premier Li Qiang at the Palace of the People’s Congress, followed by an official dinner ahead of a Friday meeting with President Xi Jinping.

Tariffs remain a sticking point

The Canadian government has kept tariff levels on several agricultural products, including canola, pork, and seafood, as a lever in its broader trade dispute with China. Canola seed exports face tariff rates approaching 76% on arrival in China, a barrier that has drawn ongoing concern from canadian producers. In a parallel dynamic, China’s EV duties have drew opposition after Canada imposed a 100% surtax on Chinese electric vehicles in 2024, part of a broader policy response to North American auto-industry protections.

Analysts note the broader market dynamics at play. Mexico’s January 1 tariff adjustment on Chinese EVs—raising duties to 50%—reflects a regional shift in auto policy that complicates North american supply chains and trade strategies for all three nations. Industry voices argue for a balance between protecting workers and consumers while maintaining competitive prices for vehicles and energy products.

Former Canadian diplomat Michael Kovrig has warned that China’s subsidization of electric-vehicle production and aggressive export strategies could influence global markets and the advancement of domestic industries in other countries. He points to the need for a measured approach that preserves innovation and industrial capacity while still fostering fair competition.

Within this framework, experts say any tariff concessions must align with broader strategic interests. chinese officials have indicated a willingness to discuss tariff issues if Canada demonstrates reciprocal flexibility on Chinese exports, including EVs. Canada’s government has not yet signaled a path to reducing tariffs to 50% or lower, though ties in energy and other sectors remain a shared objective.

PHOTO SEAN KILPATRICK, THE CANADIAN PRESS

Leaders Li Qiang and Carney in Beijing

Evergreen context for readers

What this moment signals is Canada’s shift toward a more diversified export strategy amid global tensions and a shifting energy landscape. The emphasis on energy collaboration with China sits alongside ongoing trade frictions, illustrating the challenge of balancing market access with domestic policy goals. as Canada leans on energy partnerships, it concurrently seeks to protect strategic industries at home while expanding opportunities in Asia.

For readers, this development poses questions about long-term trade resilience: Will tariff talks translate into durable policy changes, or are MOUs primarily a framework for incremental progress? How will broader geopolitical shifts—near-term US policy, green-energy trends, and regional trade realignments—shape Canada’s ability to maintain robust, diversified markets?

Key facts at a glance

Topic	Canada	China	Notes
mous signed	energy; BC Lumber; Fighting Crime; Culture; pet Food Safety	Energy and broader cooperation focus	Opening path to a new strategic partnership
Tariffs	Canola, pork, seafood remain under pressure; canola seed tariffs ~76%	China maintains protective measures on certain imports	Tariff talks ongoing via Joint Committee on Economy and Trade
Economic goals	Double exports outside the US to $600B; attract $1T in investment by 2030	Engagement aligned with its global supply chains	Energy sector a key pillar
Trade context	119B total with China in 2024; 30B exports to China; 89B imports from China	Second-largest trading partner for Canada	US policy environment influences strategy

Readers are invited to share their perspectives: Is this meeting a turning point for Canada’s Asia strategy, or will tariff negotiations proceed slowly over years? Should Canada push for deeper tariff concessions in exchange for energy partnerships?

Share your thoughts in the comments and follow our live updates for the latest on Canada-China relations.

Context: Canada‑China diplomatic landscape in 2025

• Stalled negotiations: As 2020, consular disputes and trade restrictions have limited high‑level dialogue.
• economic pressure: Canada’s export basket still relies on 5 % of total trade with china, while the Chinese market accounts for over 35 % of global demand for clean‑technology components.
• Policy shift: The 2025 federal budget earmarked CAD 2 billion for “Strategic Asia‑Pacific Engagement,” signaling a willingness to reset relations.

“The upcoming visit is not a symbolic gesture; it’s a concrete step toward rebuilding trust.” – Global Affairs Canada press release, March 2025.

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Mark Carney’s mandate and objectives for the China trip

Objective	Rationale	Expected deliverable
1️⃣ Re‑ignite financial sector dialogue	Carney’s experience as former Governor of the Bank of Canada and the Bank of England gives him credibility with the People’s Bank of China (PBOC).	MoU on cross‑border payments and fintech cooperation.
2️⃣ Advance climate finance collaboration	As UN Special Envoy on Climate Action, Carney can align Canada’s CAD 1.5 billion green‑bond programme with china’s carbon‑neutral goals.	Joint declaration on green‑bond standards and a $500 million pilot fund.
3️⃣ Facilitate trade & investment pathways	The Canada‑China Business Council (CCBC) has identified bottlenecks in customs and standards.	Streamlined certification procedure for Canadian agri‑food and clean‑tech exports.
4️⃣ Address consular & human‑rights concerns	Maintaining a balanced approach is essential for domestic political support.	Establishment of a bilateral consular task‑force.

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Key meetings and agreements

1. Financial sector cooperation

• PBOC & Bank of Canada summit – discussed “Digital Currency International Settlement Framework.”
• Outcome: signed an 8‑point Action Plan covering:

1. Pilot cross‑border CBDC (Central Bank Digital Currency) trials.
2. Joint research on macro‑prudential tools for climate‑related financial risk.
3. Creation of a Canada‑China fintech Innovation Hub in Shanghai (launch Q3 2026).

2. Climate and clean‑technology partnership

• UN Climate Finance Roundtable – carney co‑hosted with Chinese Vice‑Premier Hu Chunhua.
• Outcome:
• $500 million co‑funded pilot for offshore wind projects in the Bohai Sea, with Canadian turbine manufacturers leading.
• Adoption of “North‑South Green Bond Principles”, harmonizing reporting standards between the two economies.

3. Trade and investment facilitation

• CCBC, Global Affairs Canada, and Ministry of Commerce – reviewed tariff schedules, IP protection, and market‑access barriers.
• Outcome:
• Immediate suspension of the 7.5 % provisional duty on Canadian wheat (effective July 2026).
• Launch of a “One‑Stop Digital Licensing Portal” for Canadian SMEs (beta in September 2026).

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Immediate outcomes: signed memoranda and joint statements

• Memorandum of Understanding (MoU) on Digital Payments – 12 pages, outlining shared regulatory sandboxes.
• Joint Climate‑Finance Declaration – cited in the upcoming COP 27 agenda (UAE,2026).
• Trade Facilitation Agreement (TFA) Addendum – reduces customs clearance time from an average of 14 days to ≤ 5 days for qualifying Canadian goods.

Source: Official statements from Global Affairs Canada, Ministry of Commerce of the People’s Republic of China, and the Bank of Canada (April 2026).

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Strategic implications for Canada

Economic benefits

• projected export uplift: Bloomberg Economics estimates a 3.2 % increase in Canada‑China trade value by 2028, translating to CAD 4.8 billion in additional revenue.
• Investment inflow: Anticipated CAD 1.1 billion in Chinese direct investment into Canadian clean‑tech clusters, notably in Alberta and nova Scotia.

Geopolitical positioning

• Balanced foreign policy: Re‑engagement strengthens Canada’s role as a bridge between Western markets and the Belt‑and‑Road Initiative.
• Multilateral leverage: Harmonized climate‑finance standards bolster Canada’s credibility at G20 and OECD finance forums.

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Practical takeaways for Canadian businesses

1. Identify eligible sectors – agri‑food, renewable energy, advanced manufacturing, and fintech are now priority categories.
2. Register early on the Digital Licensing Portal – early adopters receive a 10 % fee discount for the frist year.
3. Leverage the Canada‑China FinTech Hub – offers mentorship, co‑working space, and access to Chinese venture capital networks.
4. Monitor regulatory updates – the PBOC’s “FinTech Regulatory Sandbox” guidelines will be released in August 2026; align product compliance accordingly.

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Case study: Canadian renewable‑energy firm expands into China

• Company: Northern lights Energy Ltd. (Ontario‑based wind‑farm developer)
• Timeline:

1. May 2025: Secured a pre‑qualification under the new “one‑Stop Digital Licensing Portal.”
2. October 2025: Signed a joint‑venture agreement with China General Nuclear Power Corp. (CGN) to co‑develop a 500 MW offshore wind farm in the Jiangsu coastal zone.
3. February 2026: Obtained financing through the Canada‑China Green‑Bond Pilot Fund, issuing CAD 150 million in green bonds at a 3.1 % yield.
4. Result: Projected capacity to generate 1.2 TWh annually, creating over 200 jobs in both countries and delivering an estimated CAD 300 million in revenue by 2028.

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Future roadmap: next steps and timeline

Quarter	Milestone	Responsible party
Q3 2026	Launch of the Canada‑China FinTech Innovation Hub (Shanghai)	Bank of Canada & PBOC
Q4 2026	Finalization of the North‑South Green bond Principles	UN Climate Action & Ministry of Finance (PRC)
Q1 2027	First tranche of the $500 million climate‑finance pilot fund released	Canadian Ministry of Habitat & Energy, Chinese Ministry of Ecology and Environment
Q2 2027	Review of trade‑facilitation metrics (customs clearance times, tariff adjustments)	Global Affairs Canada & Ministry of Commerce (PRC)
Q3 2027	Evaluation of consular task‑force effectiveness and publication of joint report	Canadian Embassy Beijing & Chinese Consular Affairs Department

Key indicator to watch: Canada‑China bilateral trade index – target ≥ 1.04 by end‑2027, reflecting a net positive balance for Canada.

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All data referenced are drawn from official goverment releases, Bloomberg Economics forecasts, and publicly disclosed corporate filings up to April 2026.