China calls for better relations with Canada, seeking dialogue to resolve trade tensions and tariffs as both nations face economic and diplomatic challenges.
Beijing Reaches Out for Stronger Bilateral Relations
China has called for renewed efforts to improve its relationship with Canada, following a period of heightened trade tensions between the two nations. On Friday, June 6, Chinese Premier Li Qiang spoke with Canadian Prime Minister Mark Carney by phone, according to China’s state-run Xinhua news agency. Li emphasized that there are “no fundamental conflicts of interest” between China and Canada, and expressed Beijing’s readiness to work together to restore healthy and stable relations.
Recent Spike in Trade Tensions
The diplomatic outreach comes after a sharp increase in trade friction this year. In March, China imposed tariffs on more than $2.6 billion worth of Canadian agricultural and food products. This move was in direct response to Canada’s tariffs on Chinese electric vehicles, steel, and aluminum, which were introduced in October 2024. In addition, Beijing has launched an anti-dumping investigation into Canadian canola, a key export, with a decision expected in September.
Dialogue as a Path to Resolution
During their conversation, Premier Li told Prime Minister Carney that both countries should address each other’s concerns through “enhanced dialogue.” Li highlighted the importance of listening to their citizens and deepening cooperation to build trust. The Chinese government signaled its willingness to find practical solutions and put the bilateral relationship back on a positive track.
Economic and Strategic Implications
China is Canada’s second-largest trading partner, with Canadian exports to China totaling $47 billion in 2024, according to Chinese customs data. The trade dispute has already affected Canadian farmers and exporters, particularly those dealing in canola, which was previously among Canada’s top exports to China. The situation is being closely watched by Canadian industry groups and policymakers.
Broader International Context
The call between Li and Carney came just one day after a high-profile conversation between U.S. President Donald Trump and Chinese President Xi Jinping, which raised hopes for easing the broader U.S.-China trade war. The timing is also significant as world leaders prepare for the Group of Seven (G7) summit in Canada in mid-June, where China’s trade policies are expected to be a major topic.
Next Steps and Outlook
Both China and Canada have expressed interest in safeguarding multilateralism and free trade. Premier Li’s outreach suggests Beijing is seeking to de-escalate tensions and avoid further economic fallout. As the anti-dumping investigation continues and the G7 summit approaches, the coming weeks will be crucial for determining whether dialogue can yield a breakthrough in China-Canada relations.
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