Canada has announced an ambitious plan to increase exports to China by 50% before the end of the decade, signaling a major shift in Ottawa’s global trade strategy as tensions with the United States continue reshaping international economic alliances. The announcement came during the high-profile visit of Chinese Foreign Minister Wang Yi to Ottawa, his first official trip to Canada in nearly ten years, amid growing efforts by Prime Minister Mark Carney’s government to diversify trade partnerships beyond the United States.
Canadian Foreign Minister Anita Anand said Ottawa is committed to expanding economic cooperation with China while balancing concerns related to national security and strategic interests. Speaking ahead of her meeting with Wang, Anand emphasized that bilateral trade between Canada and China already reached approximately C$125 billion, or about US$90.7 billion, last year, making China one of Canada’s most important trading partners outside North America.
“We are committed to growing this relationship responsibly with a goal of increasing exports to China by 50% by 2030, while safeguarding Canada’s economic and national security interests and values,” Anand stated during remarks delivered in Ottawa.
Wang Yi’s visit marks a symbolic turning point in relations between the two countries after years of diplomatic hostility, political disputes, and retaliatory trade measures. The Chinese foreign minister is also expected to meet Prime Minister Mark Carney later Friday as both governments seek to deepen economic cooperation in response to shifting geopolitical realities triggered largely by US President Donald Trump and his aggressive tariff policies.
Trump’s renewed trade pressure on allies and rivals alike has forced many countries to reassess their strategic economic dependencies. Canada, whose economy remains heavily tied to the United States, has increasingly explored alternative export markets, particularly in Asia. Expanded oil and gas shipments to China have reportedly become one of Ottawa’s top priorities as Carney’s administration works to reduce Canada’s reliance on the American market.
The evolving relationship between Ottawa and Beijing gained momentum earlier this year when Carney visited Beijing in January to meet Chinese President Xi Jinping and Premier Li Qiang. During that trip, both countries reached a deal aimed at reducing trade barriers and restoring cooperation across multiple sectors.
Under the agreement, Canada agreed to permit up to 49,000 Chinese electric vehicles annually into the Canadian market at a tariff rate of 6.1%, effectively removing the 100% surtax previously imposed on Chinese EV imports. In return, Beijing agreed to ease tariffs and restrictions targeting Canadian agricultural exports, fisheries, and other key industries that had suffered during previous diplomatic disputes.
Carney described the agreement as the foundation for a new “strategic partnership” between Canada and China, arguing that both countries must adapt to a changing international landscape shaped by intensifying trade wars and shifting geopolitical alliances.
“This sets us up well for the new world order,” Carney reportedly told Chinese officials during the Beijing meetings earlier this year.
For China, improving ties with Canada also serves a broader strategic objective. Beijing has long sought to weaken US-led alliances and reduce international support for Washington’s efforts to counter Chinese influence globally. Canada’s recent frustration with Trump’s trade policies and diplomatic unpredictability has created an opportunity for Beijing to rebuild ties with one of America’s closest traditional allies.
Wang Yi said Friday that relations between China and Canada had already achieved a “turnaround” and were now entering a phase of renewed growth and cooperation beneficial to both countries.
Anand echoed those comments, saying leaders from both governments had established a “clear and ambitious vision” for future relations. According to her, cooperation would extend beyond trade into areas such as investment, energy, finance, public safety, and people-to-people exchanges.
“It includes elevated engagement and cooperation on trade and investment, energy, finance, public security and safety, and people-to-people ties,” Anand said. “At the same time, each of our countries must address critical issues and priorities to ensure the safety and security of our peoples.”
One of the most significant areas of future cooperation involves energy exports. Carney’s government has pledged support for a proposal from Alberta to construct a major new oil pipeline connecting western Canada to the Pacific coast. The project would allow at least one million barrels of oil per day to reach Asian markets, including China.
Currently, Canada possesses only one pipeline route capable of serving Asian customers, and the overwhelming majority of Canadian oil exports still flow south into the United States. Canadian officials increasingly see diversification into Asian markets as essential to long-term economic security, particularly amid uncertainty surrounding US trade policy.
The warming relations represent a dramatic reversal from the deep tensions that characterized the final years of former Prime Minister Justin Trudeau’s administration.
Relations between Ottawa and Beijing deteriorated sharply in 2018 after Canadian authorities arrested a senior executive from Huawei Technologies at the request of the United States. Shortly afterward, China detained two Canadian citizens in what many Western governments viewed as retaliatory “hostage diplomacy.”
Additional disputes involving allegations of Chinese interference in Canadian elections, retaliatory trade restrictions, and diplomatic confrontations further damaged bilateral ties over subsequent years.
The recent reset has therefore attracted criticism from some American policymakers and political figures who argue Canada risks undermining broader Western efforts to contain China’s growing economic and geopolitical influence.
Trump himself has reportedly criticized Carney’s decision to lower tariffs on Chinese electric vehicles, viewing the agreement as a major departure from Washington’s strategy toward Beijing. The deal provides Chinese EV manufacturers with greater access to the Canadian market at a time when intense domestic competition and slowing growth are pressuring China’s automotive industry.
However, Carney has defended the policy shift, arguing that Canada cannot afford to isolate itself from the world’s second-largest economy. Speaking recently at the Economic Club of New York, the Canadian prime minister said relations with China had deteriorated so severely under previous governments that economic normalization became necessary.
He argued that major Canadian industries, particularly agriculture and fisheries, had lost access to one of the world’s largest consumer markets, placing hundreds of thousands of Canadian jobs at risk.
“In this world, it’s the second-largest economy — you need to have a dialogue with China,” Carney said.
The renewed engagement also reflects broader changes in the global economic order. Trump’s trade wars, tariffs, and increasingly unilateral foreign policy have strained relations between Washington and several long-standing allies. Countries such as Canada are now attempting to balance their traditional alliances with economic pragmatism as global power structures continue evolving.
Despite improving diplomatic ties, challenges remain. Canadian officials continue expressing concerns regarding national security, cybersecurity, foreign interference, and human rights issues involving China. Anand acknowledged that both countries must continue addressing sensitive political and security matters alongside economic cooperation.
For Beijing, however, the optics of Wang Yi’s visit are already significant. The Chinese foreign minister last visited Canada in 2016, shortly before the late Chinese Premier Li Keqiang traveled to Ottawa. No senior Chinese leader has visited Canada since then.
Notably, Xi Jinping has never visited Canada since becoming China’s president in 2012, making Canada the only Group of Seven country Xi has not officially visited during his presidency.
That fact alone highlights the extent of the diplomatic freeze that existed between the two nations for much of the past decade. Now, amid shifting geopolitical pressures and global economic uncertainty, both governments appear increasingly willing to move beyond past disputes in pursuit of strategic economic interests.
Whether the renewed partnership will fundamentally reshape Canada’s position between Washington and Beijing remains unclear. But the push to expand exports to China by 50% before 2030 suggests Ottawa is preparing for a world where economic survival may increasingly depend on maintaining flexible relationships with multiple global powers rather than relying overwhelmingly on the United States alone.
