Mark Carney, Canada’s Prime Minister, is on a pivotal four-day visit to China, marking the first by a Canadian leader since 2017. The trip aims to reset strained relations and build a new strategic partnership amid shifting global dynamics.

Key Developments During the Visit:

• Meeting with Xi Jinping: On Friday, January 16, 2026, Carney met with Chinese President Xi Jinping in Beijing, hailing a “new strategic partnership” adapted to “new global realities.”

• Trade Deal on EVs and Canola: Carney announced a preliminary trade agreement allowing 49,000 Chinese electric vehicles into Canada at a preferential 6.1% tariff rate, in exchange for China reducing its tariffs on Canadian canola. Canada expects Beijing to lower canola seed duties to 15% by March 2026.

• Energy Cooperation: A memorandum of understanding was signed to boost co-operation on clean and conventional energy, including increased Canadian oil and gas exports and Chinese green energy technology imports.

• Renewed Agreements: Six new agreements and two declarations were signed with Chinese Premier Li Qiang, covering energy, food safety, modern wood construction, culture, and crime-fighting—many reviving expired non-binding pacts.

Context and Challenges:

• The visit follows years of diplomatic tension, including the 2018 Meng Wanzhou arrest and retaliatory detentions of two Canadians.

• Canada seeks to diversify trade beyond the U.S., especially amid ongoing U.S. protectionist tariffs.

• The U.S. remains a key concern, with Canada carefully balancing its foreign policy to avoid provoking Washington while pursuing economic opportunities.

Carney reaffirmed Canada’s One China policy and emphasized that while security threats remain, cooperation through alliances and partnerships is essential.