10% Decline in Canada-China Trade as PM Carney Visits Beijing

In 2025, Canadian imports to China experienced a notable decrease of 10.4%, dropping to $41.7 billion, representing the first decline since 2020. This downturn coincides with Prime Minister Mark Carney's visit to Beijing, marking the first by a Canadian leader since 2017. Analysts interpret this fall as indicative of China's ongoing economic dominance over Canada, compounded by existing trade tensions.

The purpose of Carney's visit is to mend the trade and diplomatic fractures that developed in 2024 when Canada levied 100% tariffs on Chinese electric vehicles, following the lead of the United States. Through social media, Carney highlighted that China stands as Canada's second-largest trading partner, asserting the importance of a pragmatic and constructive relationship for mutual stability and prosperity.

Previously, Carney met with Chinese President Xi Jinping in South Korea last October. Although no significant breakthroughs were reached, both parties expressed a commitment to enhancing bilateral ties, focusing on issues such as Canadian canola exports, which remain constrained by Chinese tariffs. Foreign Minister Anita Anand described the discussions on canola as constructive, with plans for ongoing dialogue. She emphasized the need for broader collaborations while solidifying trade relations, referring to their partnership as complex yet hopeful.

Canada’s renewed focus on engaging China arises partly from the necessity to diversify its export markets in light of rising trade tensions with the United States, amid tariffs and remarks from former President Trump. Ahead of Carney’s trip, Chinese media reminded Canada to uphold strategic independence and avoid excessive alignment with U.S. policies, which had previously led to complications in bilateral relations.

During Justin Trudeau's administration, Canada expressed concerns regarding human rights in China and accused Beijing of meddling in domestic issues—a stance that China denied. Minister Anand asserted that Canada would persist in addressing challenging topics such as human rights while also prioritizing economic growth and engaging in constructive dialogue regarding trade.

The decline in Canadian exports reflects a broader pattern, as U.S. imports from China also saw a decrease of 14.6% in 2025. Carney’s visit is a pivotal move toward restoring economic and diplomatic relations, aiming to balance trade considerations with human rights discussions and strategic cooperation between the two nations.