Canada signs trade deals with China, aims to reduce U.S. reliance

Canada signs trade deals with China, aims to reduce U.S. reliance
Canada's Prime Minister Mark Carney walks at Ritan Park, during the first visit by a Canadian prime minister to China since 2017, in Beijing, China, January 16, 2026.
Reuters

Canadian Prime Minister Mark Carney has signed a series of trade and cooperation agreements with China during his four-day visit to Beijing, the first by a Canadian premier in eight years.

The agreements include memoranda of understanding on economic and trade cooperation, energy, culture, food safety, animal and plant health, and measures to combat crime. Beijing will grant visa-free access to Canadian travellers, while Canada will allow the import of up to 49,000 Chinese electric vehicles, and China will reduce tariffs on Canadian canola seeds to around 15%.

Carney said the deals are part of Ottawa’s efforts to diversify trade and reduce reliance on the U.S., aiming to double non-U.S. exports over the next decade. He emphasised that cooperation with China will support stability, security, and prosperity, as well as improve the multilateral system.

Chinese President Xi Jinping described the relationship as entering a “turning point,” praising recent discussions between agencies in both countries. He said China would continue to work with Canada “with a sense of responsibility for the history, for the people and for the world” to advance bilateral ties on a healthy and sustainable track.

U.S. President Donald Trump said Canada was right to pursue trade deals with China, adding: “If you could get a deal with China, you should do that.” Carney’s visit comes amid previous U.S. tariffs on Canadian goods and growing trade tensions between Ottawa and Washington.

Canada and China established diplomatic relations in 1970, with bilateral trade reaching $67 billion by the end of 2024. The visit included meetings with Chinese Premier Li Qiang and marked the first visit by a Canadian premier since Justin Trudeau’s trip in 2017.

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