In a significant diplomatic breakthrough, Prime Minister Mark Carney held a bilateral meeting with Chinese President Xi Jinping on Friday during the Asia-Pacific Economic Cooperation (APEC) summit. The meeting marks the first formal encounter between Canadian and Chinese leaders since 2017, providing an opportunity to reset a relationship marred by tension, trade barriers, and political mistrust.

A Turning Point in Diplomatic Ties

Ahead of the closed-door meeting, Xi Jinping emphasized the historical cooperation between Canada and China, extending a formal invitation to PM Carney for a state visit. “China is willing to work together with Canada to push China-Canada relations back onto a healthy, stable and sustainable correct track at an early date,” Xi said in Mandarin, later translated.

Carney acknowledged the growing distance between the two nations during recent years, saying, “Distance is not the way to solve problems, not the way to serve our people,” as reporters were ushered out.

Following the 39-minute meeting, Carney described the dialogue as “long overdue,” declaring it a turning point for the bilateral relationship. “We now have a turning point in the relationship, a turning point that creates opportunities for Canadian families, for Canadian businesses.”

Trade Tensions Top the Agenda

A statement from the Prime Minister’s Office revealed that both sides agreed to fast-track efforts to resolve ongoing trade disputes. The discussions covered mutual trade sensitivities regarding agriculture, agri-food products, seafood, and electric vehicles (EVs).

Canada’s major exports to China, including canola, pork, and minerals, have long faced fluctuating trade barriers — often seen as political tools during moments of diplomatic strain. Notably, Chinese retaliatory tariffs on Canadian canola and farm products were highlighted as key obstacles.

Recent Canadian tariffs on Chinese electric vehicles also contributed to growing friction, sparking concerns about a “two-front trade war” affecting domestic producers. Carney’s meeting took place amid this backdrop and offered hope of easing the tensions.

Relations Fraught Since the Meng Wanzhou Affair

The leaders’ last meeting in 2017 came before a diplomatic freefall triggered by the 2018 arrest of Huawei executive Meng Wanzhou in Vancouver. China retaliated by detaining two Canadians — Michael Kovrig and Michael Spavor — in what Ottawa and international observers branded “hostage diplomacy.” Their release in 2021 did little to soften public and political skepticism toward Beijing.

Compounding challenges, Canada has accused China of interfering in domestic elections and intimidating diaspora communities. These issues represent ongoing “sensitivities” referenced by the PMO.

Broader Geopolitical Shifts Shape New Dialogue

Jeff Nankivell, president of the Asia Pacific Foundation of Canada, said the timing reflects shifting global dynamics. “After the affair of Meng Wanzhou, the two Michaels, I don't think there's a prime minister out there who would have been in a position to have some kind of a reset of the relationship immediately," he noted, attributing the current talks to both time and circumstance.

Canada’s deteriorating trade dialogue with the U.S. may also be influencing the renewed opening toward China. The meeting between Xi and U.S. President Donald Trump just a day earlier eased U.S.-China trade tensions, potentially offering Canada a strategic window to improve its own relations.

Goldy Hyder, president and CEO of the Business Council of Canada, emphasized that Canada must be pragmatic. “If America’s sending that signal, then it's clearly an opportunity for Canada to say, well, we agree,” Hyder said. “We’re going to look out for ourselves as well.”

What Comes Next?

While the readout contained few specifics, both leaders appear committed to restoring stability and growth to a strained relationship. An anticipated state visit by PM Carney may cement the diplomatic thaw.

For now, Friday’s meeting signals a willingness to repair fractured ties and overcome long-standing challenges, from trade blockades to political distrust. Whether goodwill translates into real economic and diplomatic progress will be closely watched at home and abroad.

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