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February, 24

“Prime Minister Carney Seeks to Reset Canada-China Relations”

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Prime Minister Mark Carney is looking to establish new expectations in Canada’s relationship with China as he prepares to meet President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea this week. This meeting marks the first interaction between the leaders of both countries since the strained diplomatic ties that ensued from the 2018 arrest of Huawei executive Meng Wanzhou on a U.S. extradition request, leading to the detention of Canadians Michael Kovrig and Michael Spavor by Beijing.

Carney confirmed the upcoming meeting while addressing reporters after the ASEAN summit in Kuala Lumpur, Malaysia, emphasizing that it signifies the beginning of a broader dialogue. He mentioned his recent discussions with Chinese Premier Li Qiang at the UN General Assembly, highlighting that the talks will encompass various issues such as the commercial partnership and the global system’s progression.

Anticipating the meeting with President Xi, Carney expressed his enthusiasm for the opportunity. Amidst ongoing developments, U.S. President Donald Trump is also seeking a meeting with Xi following the announcement of a potential trade agreement framework between the two nations. Carney hinted at the possibility of revisiting investment restrictions imposed on Chinese capital by the former Liberal government and exploring avenues like a free trade agreement or the removal of tariffs on Chinese electric vehicles, which were initiated in 2024 concurrently with the United States.

Carney emphasized the importance of rebuilding relationships over time, especially when they have deteriorated, and emphasized the vast potential for enhancement in multiple areas. Recognizing China as Canada’s second-largest trading partner and a significant global economic force, Carney highlighted the importance of fostering stronger ties between the two nations. The last formal meeting between a Canadian prime minister and Xi took place in 2017, culminating in a failed trade negotiation under the Trudeau administration.

The relationship between Canada and China faced further challenges with subsequent events like Meng’s arrest and the retaliatory measures taken by both sides, including tariffs and sanctions. Carney acknowledged the current starting point of relations as relatively low but underscored the considerable scope for improvement moving forward.

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