KUALA LUMPUR - Prime Minister Mark Carney announced plans to meet with Chinese President Xi Jinping this week at the Asia Pacific Economic Cooperation (APEC) forum in South Korea. This meeting will be the first between the leaders of Canada and China in several years, signaling a potential thaw in their historically strained relations.

Carney's meeting with Xi comes amid ongoing trade tensions between the two nations. China has imposed significant tariffs on Canadian canola, seafood, and agricultural products in response to Canada's tariffs on Chinese electric vehicles and batteries. Canadian business leaders and officials have urged Carney to engage with Xi to help ease the trade dispute.

During a press conference in Kuala Lumpur, Carney emphasized the importance of the relationship with China, stating, "This is our second largest trading partner. This is the second largest economy in the world." He noted that Canada had not had senior-level contact with China for several years until he met with Premier Li Qiang last month at the United Nations General Assembly.

Carney's trip to Asia marks his first as prime minister, where he aims to expand trade opportunities and establish new partnerships. He acknowledged the challenges of navigating relations with China while also considering the expectations of the United States under President Donald Trump, who has taken a tough stance on China.

The Prime Minister did not rule out the possibility of relaxing investment restrictions on Chinese capital or pursuing a free trade agreement with China. He stated, "We are in the process of resetting expectations of where the relationship can go."

The last formal meeting between a Canadian prime minister and Xi took place in 2017, when former Prime Minister Justin Trudeau attempted to initiate free trade negotiations. Relations soured in late 2018 after Canada arrested Huawei executive Meng Wanzhou, leading to the detention of two Canadians in China, a situation described as "hostage diplomacy" by a Trudeau cabinet member.

Carney's upcoming discussions with Xi are seen as a crucial step in addressing the ongoing trade war and rebuilding ties with the Asian superpower. The Prime Minister's efforts come as Canada faces economic repercussions from China's retaliatory tariffs, which have significantly impacted Canadian farmers and exporters.

As the situation develops, Carney is expected to provide further insights into the future of Canada-China relations and potential trade agreements following his meeting with Xi.

More updates will follow as the APEC summit approaches.