Mark Carney, Canada’s Prime Minister, has initiated a pivotal reset in Canada-China relations during his first official visit to Beijing since 2017, culminating in high-level talks with Chinese President Xi Jinping on January 16, 2026. The meeting marked the first leaders’ dialogue between the two nations in eight years, signaling a significant shift from years of diplomatic tension.

Carney announced the formation of a "new strategic partnership" between Canada and China, emphasizing cooperation in key areas such as energy, agriculture, agri-food, finance, clean technology, and people-to-people ties. The visit follows months of diplomatic efforts to resolve trade disputes, including retaliatory tariffs on Canadian canola and Chinese electric vehicles (EVs), and aims to diversify Canada’s trade away from its heavy reliance on the United States amid escalating U.S. tariffs under President Donald Trump.

During the trip, Canada and China signed several memorandums of understanding (MOUs), including landmark agreements on energy cooperation, sanitary oversight for pet food and animal health, and frameworks for regular ministerial dialogue on energy. These agreements are intended to open new markets for Canadian exports—particularly in energy, forestry, and agriculture—while fostering investment in services, advanced manufacturing, and clean energy.

Despite progress, no breakthrough on tariffs has been announced. Industry Minister Melanie Joly confirmed that negotiations on reducing Canada’s 100% EV tariffs and lifting Chinese tariffs on Canadian canola and other agricultural goods are ongoing. Analysts note the continued lack of a final deal reflects the complexity of the issues, though both sides agree on the importance of maintaining open communication channels.

The visit underscores Canada’s strategic pivot to reduce economic vulnerability to U.S. trade policy shifts, with the government aiming to double non-U.S. exports over the next decade. While Canada continues to view China as a "disruptive global power" in security and human rights terms, the Carney government is pursuing a pragmatic, realist approach focused on mutual economic benefit and global stability.