Canada’s Prime Minister Mark Carney met with Chinese President Xi Jinping on Friday, marking the first time leaders from both countries have sat down for official talks in eight years. The meeting happened during the Asia Pacific Economic Cooperation summit taking place in South Korea. Carney told reporters on Saturday that people shouldn’t expect quick fixes to come out of one conversation. He said the goal was simply to start talking again at the top level after such a long break. “What the meeting accomplished, which was the objective of the meeting, was to establish that relationship at the highest level for the first time in eight years, and to unlock a few things,” Carney said before heading back home. The prime minister accepted an invitation from Xi to travel to China sometime in the new year. However, he wouldn’t say when problems like tariffs and travel limits between the two countries might get sorted out. “People sometimes simplify it down, to give this for that,” Carney said . “That’s not the way it works.” One major issue between Canada and China involves taxes placed on each other’s products. Last year, when Justin Trudeau was still prime minister, Canada put heavy tariffs on electric vehicles, steel and aluminum coming from China. In response, China placed levies on Canadian food products, hitting canola especially hard as reported by Cryptopolitan. This crop represents a major export for Canadian farmers selling to Asia. Carney said he wants to open doors for more Canadian companies to do business in China over time. He mentioned clothing retailers like Lululemon Athletica Inc. and Canada Goose Holdings Inc. as examples of businesses that could benefit. He noted that some sectors involving cyber-security technology would likely still face investment restrictions due to security concerns. Walking a careful line on electric vehicles When reporters asked if Canada would reconsider the 100% tariff it placed on Chinese electric vehicles, Carney didn’t give a clear answer. He said his government would “proceed carefully” because of challenges facing the auto industry, likely referring to tariffs that US President Donald Trump has put on Canadian cars coming into America. Still, Carney sees room for Canada and China to work together on clean energy projects. He pointed out that Chinese companies lead the world in offshore wind power and battery storage technology. “Some of the most competitive companies in the world are Chinese, in both offshore wind and in battery storage,” Carney said. “It’s a natural potential area for cooperation even before you get to EVs.” Trouble with America complicates matters Meanwhile, Canada faces trade troubles closer to home. Last week, President Trump said he was ending trade discussions with Canada. This came after Ontario released an advertisement using audio from former President Ronald Reagan criticizing tariffs. After speaking with Mark Carney, Ontario Premier Doug Ford paused the advertising campaign on Monday to allow trade talks with the United States to resume. The ad continued to air during the World Series games over the weekend before the pause took effect. “Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses,” Ford said. “We’ve achieved our goal, having reached U.S. audiences at the highest levels.” Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
