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Australia

Canada, in break from Trump’s trade agenda, rebuilds ties with China

Carney praised his strategic partnership with Xi, citing the importance of their ties in the face of the “new world order.” This was a veiled reference to the global instability caused by President Trump’s foreign policy swings and destructive trade agenda.

“I am extremely pleased to be moving forward with our new strategic partnership,” Carney told Xi on Friday. A day earlier, he told Chinese Premier Li Qiang that their strengthened relations “prepared us well for the new world order.”

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Asked at the press conference whether he still sees China as Canada’s biggest security threat, Carney said the security environment continues to change. He added that the multilateral system was eroded and it was not yet clear what would replace it.

The proposal comes in the wake of Trump’s trade war last year, which imposed tariffs on goods from American allies and rivals. At the same time, the Republican leader rescued Vladimir Putin from isolation, stunned the world by deposing the Venezuelan leader, and threatened to invade Greenland, a semi-autonomous region of NATO member Denmark.

Carney’s trip comes as tough negotiations with Trump on a North American free trade agreement approach. Prior to these talks, US officials pressured Mexico and Canada to impose barriers to Chinese products.

Carney, who has frequently stated that Canada-US relations are experiencing a historic “rupture”, called for a new relationship with Beijing “adapted to new global realities” in his meeting with Xi.

Xi expressed optimism, noting the “positive results” in repairing ties.

“The healthy and stable development of China-Canada relations serves the common interests of our two countries and also contributes to world peace, stability and prosperity,” he said.

Beijing did not confirm details of the deals announced by Carney. The joint statement issued by both governments states that both sides will expand trade, strengthen investments and deepen cooperation in various fields, including energy, finance, public security and people-to-people exchanges.

According to the statement, Canada reaffirmed its commitment to the long-standing One China Policy. Under this approach, Canada recognizes the People’s Republic of China as the sole legitimate government without endorsing or objecting to the Chinese position on Taiwan, the self-governing democracy that Beijing claims.

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Since taking office last year, Carney has sought to reset relations with China and deepen Canada’s trade with the Asian superpower. He is among leaders including Britain’s Keir Starmer and Germany’s Friedrich Merz who traveled to Beijing earlier this year to rebuild ties after the US and China stabilized relations with a trade truce.

Speaking to reporters on Thursday, Canadian Industry Minister Melanie Joly, who called China “an increasingly destructive global power” as foreign minister in 2022, said the goal now is to stabilize the relationship between the two countries.

“You know what? The talks here have been more predictable and stable than they have sometimes been with other countries, including our neighbor,” he said.

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