China, Canada reset ties as Xi Jinping and Mark Carney hold first Beijing talks in eight years – What we know so far

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Xi Jinping meets Canadian PM Mark Carney in Beijing to launch a new strategic partnership, as Ottawa seeks to diversify trade beyond the US.

Canadian Prime Minister Mark Carney shakes hands with President of China Xi Jinping at the Great Hall of the People in Beijing, China on Friday
Canadian Prime Minister Mark Carney shakes hands with President of China Xi Jinping at the Great Hall of the People in Beijing, China on Friday(via REUTERS)

Chinese President Xi Jinping and Canadian Prime Minister Mark Carney held talks in Beijing on Friday, signalling a renewed effort to reset bilateral relations amid shifting global alliances and escalating trade tensions with the United States.

The meeting at Beijing’s Great Hall of the People marked the first visit by a Canadian prime minister to China since 2017 and the first time the two countries’ leaders have met in the Chinese capital in eight years.

Resetting ties after years of strain

Carney, who arrived in Beijing earlier on Friday, described the discussions as the beginning of a “new strategic partnership” between Canada and China. The visit follows months of diplomatic engagement aimed at repairing relations after years of political and economic friction.

“Together, we can build the best of what this relationship has been in the past to create a new one,” Carney told Xi.

He identified agriculture, energy and finance as priority areas for cooperation, adding: “Agriculture, energy, finance, that's where we can make the most immediate progress.”

Beijing sees ‘turning point’ in relations

Xi welcomed Carney and his delegation, characterising the visit as a moment of transition in bilateral ties. Referring to their previous encounter on the sidelines of an Asia-Pacific summit last October, Xi said that meeting had paved the way for renewed engagement.

“It can be said that our meeting last year opened a new chapter in turning China-Canada relations toward improvement,” Xi said.

“The healthy and stable development of China-Canada relations serves the common interests of our two countries,” he added, noting that he was “glad” to see recent efforts to restore cooperation.

Trade diversification amid US pressure

Carney’s visit comes against the backdrop of heightened trade tensions with Washington following the re-election of US President Donald Trump, who has imposed new tariffs on Canadian goods and publicly questioned Canada’s sovereignty.

Seeking to reduce reliance on its largest export market, Carney has prioritised diversifying Canada’s economic partnerships, with China — its second-largest trading partner — a central focus.

Canada and China have been engaged in talks to ease mutual tariffs, though no agreement has yet been announced. Carney also met Chinese Premier Li Qiang on Thursday and is scheduled to hold discussions with Chinese business leaders to promote trade and investment.

‘Historic gains’ in a divided world

Reiterating the stakes of the visit, Carney framed the proposed partnership in broader geopolitical terms, arguing that closer cooperation was essential amid global fragmentation.

“It is important to start this new strategic partnership at a time of division,” he told Xi, calling for a focus on sectors capable of delivering “historic gains” for both countries.

“That is where I believe we can make immediate and sustained progress,” he added.

China, which has also been hit by US tariffs since Trump’s return to the White House, has signalled interest in deepening ties with a Group of Seven economy in what has traditionally been a sphere of American influence.

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