Prime Minister Mark Carney and Chinese President Xi Jinping have agreed to address long-standing trade and diplomatic “irritants” between their countries after holding the first formal leader-to-leader meeting since 2017, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
The 39-minute bilateral, described by both sides as “pragmatic and constructive,” marks what Carney called a “turning point” in Canada-China relations.
“Distance is not the way to solve problems,” Carney told Xi at the start of the meeting. “This is long overdue — a turning point that creates opportunities for Canadian families and businesses.”
Xi, speaking through an interpreter, struck a conciliatory tone and invited Carney for a state visit to China, saying both countries should “push relations back onto a healthy, stable and sustainable track.”
Leaders Agree to Tackle Trade Disputes
A readout from the Prime Minister’s Office said the two leaders directed their officials to “resolve outstanding trade issues and irritants”, specifically referencing agriculture, seafood, and electric vehicles.
Canada’s exports of canola, pork, and minerals have repeatedly faced restrictions in China over the past decade — barriers Ottawa and industry groups have long criticized as politically motivated.
While Carney did not outline specific resolutions, officials say the goal is to rebuild trust and resume consistent economic dialogue after years of strained relations.
First Step Toward a Reset
Experts say the meeting was as much about timing as diplomacy.
“After the Meng Wanzhou affair and the two Michaels, no Canadian leader could have initiated a reset right away,” said Jeff Nankivell of the Asia Pacific Foundation of Canada. “But circumstances have shifted.”
With Canada’s relationship with the U.S. also under tension amid trade and tariff disputes, observers say Ottawa is looking to broaden its diplomatic and economic footing in the Asia-Pacific region.
Following the U.S.-China Thaw
Carney’s dialogue with Xi followed the Chinese president’s meeting with U.S. President Donald Trump, which signaled a temporary easing of the ongoing U.S.-China trade war.
“If America’s sending the signal that you can compete and cooperate at the same time, that’s an opportunity for Canada to do the same,” said Goldy Hyder, CEO of the Business Council of Canada.
A Fragile Relationship
The last high-level Canada-China meeting took place in 2017, when former prime minister Justin Trudeau failed to secure a free trade deal with Beijing.
Relations worsened in 2018 following the arrest of Huawei executive Meng Wanzhou in Vancouver and the subsequent detention of Canadians Michael Kovrig and Michael Spavor in China.
Allegations of foreign interference in Canadian elections and intimidation of diaspora communities further eroded trust.
Still, Carney’s meeting with Xi signals a tentative diplomatic thaw, with both leaders appearing open to “a new phase” grounded in economic pragmatism and cautious cooperation.
