Chinese President Xi Jinping invited Canadian Prime Minister Mark Carney to visit China during their first formal meeting in eight years, held on the sidelines of the APEC summit in South Korea.
The discussion marked a thaw in relations that have been tense since 2018.
Xi said China was ready to “bring China-Canada relations back to the right track,” noting recent signs of improvement. Carney agreed on the need for “constructive and pragmatic dialogue” to resolve issues and strengthen cooperation.
Ties between the two nations deteriorated after Canada arrested a top Huawei executive on a U.S. warrant in 2018, prompting China to detain two Canadians on espionage charges.
Trade tensions deepened this year after Canada imposed a 25% tariff on steel products containing Chinese steel, leading Beijing to retaliate with a 75.8% customs duty on Canadian canola — one of the country’s key exports.
Both China and Canada have also been caught in U.S. President Donald Trump’s escalating global trade war.
Although Xi and Trump recently agreed to ease some tensions, average U.S. tariffs on Chinese imports remain high at 47%. Trump also increased tariffs on Canadian goods by 10% and halted trade talks, accusing Ottawa of running a “fake” anti-tariff campaign.
At APEC, Carney acknowledged shifting global trade realities, saying the “old world of steady expansion of rules-based liberalised trade” is gone. He highlighted Canada’s role as a potential “energy superpower” and major supplier of liquefied natural gas (LNG) to Asia.
Xi also met Japan’s new Prime Minister, Sanae Takaichi — Japan’s first woman leader and a noted China critic. Chinese media reported that Xi expressed readiness to build “constructive, stable bilateral ties.” Takaichi, however, reiterated her concerns over China’s military activities and reaffirmed Japan’s plan to boost defense spending to 2% of GDP ahead of schedule.
She also voiced support for Taiwan and was expected to raise concerns about China’s actions near the disputed Senkaku (Diaoyu) Islands and detained Japanese citizens. Despite the tension, experts said both sides value stability.