Key Takeaways
- Canada and China are forging a new strategic partnership to leverage each other’s strengths in areas such as agriculture, energy, and finance.
- The partnership aims to bring "historic gains" for both countries and is seen as a way to improve relations after months of diplomatic efforts to resolve earlier tension.
- The rapprochement could reshape the political and economic context in which Sino-U.S. rivalry unfolds, although Canada is not expected to dramatically pivot away from Washington.
- Some economic and trade issues, such as tariffs on Chinese electric vehicles and Canadian farm and food products, remain to be resolved.
Introduction to the New Partnership
Canadian Prime Minister Mark Carney met with Chinese leader Xi Jinping at the Great Hall of the People in Beijing, China, to discuss a new strategic partnership between the two countries. This meeting marked the first time a Canadian prime minister has visited China since 2017, and it comes after months of diplomatic efforts to resolve earlier tension. The new partnership aims to leverage each other’s strengths in areas such as agriculture, agri-food, energy, and finance, with the goal of bringing "historic gains" for both countries.
Background and Motivations
The meeting between Carney and Xi is significant, as it comes at a time when Canada is looking to strengthen ties with the world’s second-biggest economy after the United States. The U.S. has imposed tariffs on some Canadian goods, and President Donald Trump has suggested that Canada could become the country’s 51st state. China, similarly hit by Trump’s tariffs, is also keen to cooperate with a Group of Seven nation in a traditional sphere of U.S. influence. By forging a new partnership, Canada and China aim to improve their relations and create new opportunities for trade and investment.
Areas of Focus
The new partnership will focus on areas such as agriculture, energy, and finance, where both countries can bring their strengths to the table. Carney highlighted these areas as key to making "immediate and sustained progress" in the partnership. Xi also expressed his enthusiasm for the partnership, stating that he looks forward to continuing to work with Carney to improve China-Canada relations. The partnership is expected to bring benefits to both countries, including increased trade and investment, and the creation of new jobs and opportunities.
Implications for Sino-U.S. Rivalry
The rapprochement between Canada and China could reshape the political and economic context in which Sino-U.S. rivalry unfolds. However, analysts say that Canada is not expected to dramatically pivot away from Washington, as it is a core U.S. ally and deeply embedded in American security and intelligence frameworks. Instead, Canada may take a more pragmatic and autonomous economic policy toward China, which could be seen as evidence that U.S.-led decoupling is not inevitable or universally accepted among America’s closest partners.
Near-Term Hurdles
Despite the prospects for partnership, some economic and trade issues remain to be resolved. In 2024, the Canadian government imposed tariffs on Chinese electric vehicles, following similar U.S. penalties. China retaliated with tariffs on Canadian farm and food products, such as canola oil and meal, which led to a slump in China’s imports of Canadian goods. Tariff talks continue, and Canada’s industry minister has stated that resolving these issues is a priority. The resolution of these issues will be crucial to the success of the new partnership and the realization of its potential benefits.
Conclusion and Future Prospects
The new strategic partnership between Canada and China has the potential to bring significant benefits to both countries, including increased trade and investment, and the creation of new jobs and opportunities. While there are near-term hurdles to be resolved, the partnership is seen as a positive step towards improving relations and creating a more stable and predictable trade environment. As the partnership moves forward, it will be important for both countries to work together to address the outstanding issues and to ensure that the partnership is mutually beneficial and sustainable in the long term.
