Relations deteriorated sharply after Canada arrested a Huawei executive in 2018, and the situation has remained unstable ever since.
Chinese and Canadian leaders met in South Korea during the Asia-Pacific Economic Summit, taking a step toward mending a long-standing rift between the two countries.
Chinese President Xi Jinping and Canadian Prime Minister Mark Carney met on Friday and called for improving relations in a pragmatic and constructive way, both sides said.
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“The leaders agreed that this meeting marked a turning point in bilateral relations,” a Canadian statement said.
President Xi said that thanks to the joint efforts of both sides, relations are showing signs of recovery.
“We stand ready to use this meeting as an opportunity to work with Canada to promote bilateral relations to return to a healthy, stable and sustainable track as soon as possible,” Xi said in an official report carried by Chinese state media.
Canada’s statement said Carney, who took over as prime minister in March, had accepted Xi’s invitation to visit China, but did not specify a date.
Carney later told reporters he was “very pleased” with the result.
“We are now at a turning point in our relationship, one that will create opportunities for Canadian families, Canadian businesses and Canadian workers, as well as a path to addressing current challenges,” he said.
“This meeting signals a change in attitude and openness to the relationship at the highest level, but this is not a return to a strategic partnership,” said Bina Najibulla, vice president of the Asia Pacific Foundation of Canada. “Canada needs to tread carefully because there has been no indication that the Chinese Communist Party’s behavior has changed since the Prime Minister named China as a threat to external security.”
He said Carney should continue dialogue with Chinese leaders but remain mindful of China’s threats to Canada’s security interests, including efforts to play a greater role in Arctic issues.
unstable relationship
Relations plummeted in late 2018 after Canadian authorities arrested an executive from Chinese tech giant Huawei as part of an extradition deal with the United States. China subsequently arrested two Canadians and charged them with espionage.
Even after the release in 2021 of Canadians Michael Kovrig and Michael Spavor, as well as Chinese executive Meng Wanzhou, daughter of Huawei’s founder, relations did not improve much.
Relations have recently been shaken by Canada’s decision to impose 100% tariffs on Chinese electric vehicles (EVs) and 25% tariffs on steel and aluminum starting in 2024. China has retaliated with its own high tariffs on canola, seafood and pork, and has offered to eliminate some import taxes if Canada lifts its EV tariffs.
Canada was the last to make this move in conjunction with the United States.
The two leaders directed officials to move quickly to resolve trade issues and irritants, and discussed solutions for specific products such as electric vehicles, canola and seafood, according to a Canadian statement.
Mr. Xi called for expanded “practical” cooperation in areas such as economy, trade and energy. Canada and China have been affected by tariffs imposed by US President Donald Trump.
The move comes as Mr. Carney seeks to diversify Canada’s trade from the United States and as Mr. Trump says he plans to raise tariffs on Canadian imports by another 10%. The Canada-U.S. free trade agreement is under review.
The rules-based world of liberalized trade and investment is over, Prime Minister John Carney said at a business event earlier Friday, adding that Canada aims to double its exports outside the United States over the next 10 years.
But Najibullah said China should not be seen as a solution to Canada and the United States’ problems.
“We shouldn’t diversify away from the United States and go deeper into China,” she said. “Canada’s over-reliance on both the United States and China has shown to be a vulnerability we cannot tolerate.”
