Carney tells Xi Canada and China can achieve ‘historic gains’

Canada and China moved toward a new strategic partnership on Friday as Prime Minister Mark Carney told President Xi Jinping in Beijing that closer cooperation could deliver “historic” economic gains for both countries.

Speaking during talks in the Chinese capital, Carney said the rapid improvement in relations had created opportunities for deeper collaboration, particularly in agriculture, agri-food, energy and finance.

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

Carney described himself as “heartened by the leadership of President Xi Jinping” and said the pace of renewed engagement had helped reset relations after years of strain.

Carney is on a four-day mission to rebuild ties with Canada's second-largest trading partner after the United States, following months of diplomatic efforts between the two countries to resolve earlier tension.

The visit marks the first by a Canadian prime minister to China since 2017.

Carney said the new phase in relations comes “at a time of division,” arguing that closer cooperation could produce mutual economic benefits despite broader global tensions.

Canada has been seeking to diversify trade relationships after U.S. President Donald Trump imposed tariffs on some Canadian goods, while China has also faced renewed U.S. trade pressure since Trump’s return to office.

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, 16 January, 2026.
Reuters

China, similarly hit by Trump's tariffs since he returned to the White House last year, is also keen to cooperate with a Group of Seven nation in a traditional sphere of U.S. influence.

Both sides signalled that further discussions would continue as part of efforts to stabilise and expand the bilateral relationship.

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