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WATCH: Canada courts China as US trade pressure reshapes strategy

20/01/2026 11:52
Editor: Joey Chou

Canadian Prime Minister Mark Carney has wrapped up a four-day visit to China — the first by a Canadian leader since 2017. This trip is widely seen as a test of whether Ottawa is serious about reducing its reliance on the United States.

From January 14 to 17, Carney met with China’s top leadership, including President Xi Jinping (習近平), Premier Li Qiang (李強), and National People’s Congress chairman Zhao Leji (趙樂際). Talks focused on trade, diplomacy, and regional issues, as both sides look to stabilize a relationship strained for years.

Carney traveled with a broad cabinet delegation, covering foreign affairs, industry, agriculture, natural resources, and trade. Discussions centered on economic cooperation, especially energy and agriculture, against the backdrop of U.S. tariff policies that have put pressure on Canada–U.S. trade ties.

Analysts say Canada is accelerating trade diversification as Washington pushes more unilateral economic measures. China, as the world’s second-largest economy, has emerged as a key alternative market.

Economic cooperation was the core issue. Markets watched closely for progress on energy exports and agricultural access. About 90 percent of Canada’s oil currently goes to the U.S., leaving Ottawa exposed as American energy policies shift. Electric vehicle tariffs and China’s restrictions on Canadian canola were also on the agenda.

But the visit sparked controversy at home. Human rights groups urged Carney to raise political prisoner cases and broader rights concerns during the talks. Critics warned that economic engagement should not come at the expense of Canada’s values.

Political tensions also surfaced after two Liberal Party lawmakers cut short a trip to Taiwan ahead of Carney’s China visit, fueling accusations of excessive caution toward Beijing.

Despite signs of thawing ties, scholars caution that expectations remain limited. Canada’s deep security dependence on the United States continues to constrain how far political and security cooperation with China can realistically go.

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