Xi Applauds the Reset as Canada and China Establish a New Strategic Alliance

Leaders of China and Canada announce a change in direction following a period of tense relations as they agree on trade concessions and access for electric vehicles.

Following their Beijing meeting, Chinese President Xi Jinping praised a “turnaround” in Canada-China relations and announced a new strategic partnership with Canadian Prime Minister Mark Carney.

Officials praised the meetings as historic and consequential, marking a significant thaw after nearly ten years of tense diplomatic relations.

Ahead of the meeting, Xi said that since he and Carney had talks on the fringes of an international summit in November of last year, ties between the two nations had greatly advanced.

China agreed to reduce duties on Canadian canola seed, a significant export that has been the focus of previous trade fights, as part of the new cooperation. In exchange, Canada would permit 49,000 electric cars built in China to be sold domestically; Ottawa views this as a major concession.

After years of hostility between the two nations, which worsened in 2018 after Canada detained a top Huawei official at the US’s request, Carney’s visit comes now. Beijing responded with retaliatory actions, and the conflict led to a protracted diplomatic standoff.

The agreements struck during the visit, according to officials from both sides, indicate a marked turn towards reestablishing economic cooperation and trust.

As both governments work to move past one of the lowest periods in their bilateral relationship, the new alliance is anticipated to open the door for further collaboration on trade, investment, and technology.