GYEONGJU — Prime Minister Mark Carney met with Chinese President Xi Jinping on Friday, marking a significant moment in Canada-China relations. Following their nearly 40-minute discussion at the Asia Pacific Economic Cooperation summit, Carney expressed optimism about the future. He stated, "We now have a turning point in the relationship, a turning point that creates opportunities for Canadian families, for Canadian businesses and Canadian workers, and also creates a path to address current issues."

During the meeting, Carney accepted an invitation from Xi to visit China, although he did not specify a date. He is anticipated to travel to China for the APEC summit next year. This meeting was the first official encounter between the leaders since 2017.

Carney praised the recent constructive engagement between the two nations, emphasizing that "Distance is not the way to solve problems, not the way to serve our people with people-centred growth, as you have advocated for," he told Xi. However, he did not provide details on whether the meeting resulted in any changes to the ongoing trade disputes.

Canadian agricultural sectors, including canola producers, seafood exporters, and pork farmers, continue to face high tariffs from China. These tariffs are a response to Canada’s imposition of 100 percent tariffs on Chinese electric vehicles and other goods last year. Recently, China’s ambassador in Ottawa indicated that Beijing would consider lifting its tariffs if Canada rescinds the EV tariffs.

An official statement from the Prime Minister’s Office noted that both leaders instructed their officials to expedite the resolution of outstanding trade issues. They discussed sensitive topics, including canola, seafood, and electric vehicles.

Carney's approach reflects a notable shift from the previous Trudeau administration, which labeled China as a "disruptive global power" in its Indo-Pacific strategy three years ago. Currently, Canada is positioning China as a strategic partner amid global uncertainties, aiming to boost exports to nations beyond the United States.

The relationship between Canada and China deteriorated significantly in 2018 after Canada arrested Chinese telecom executive Meng Wanzhou at the request of the United States. In retaliation, China detained two Canadian citizens, Michael Kovrig and Michael Spavor, which Canada described as arbitrary detentions. Tensions escalated further in 2022 when Xi confronted former Prime Minister Justin Trudeau at the G20 summit, accusing his government of leaking information.

Concerns over foreign interference have also been a focal point in the bilateral relationship. A federal inquiry in January identified China as the leading perpetrator of foreign interference in Canada’s democratic institutions. The report highlighted that Beijing poses a sophisticated cyber threat, including disinformation campaigns on social media. China has dismissed these allegations, claiming they lack evidence and perpetuate negative stereotypes.

In April, Carney labeled China as "the biggest security threat" to Canada. However, he has since moderated his stance, suggesting in September that Canada could engage more deeply with China on energy and manufacturing. He acknowledged that Beijing is "very sincere and engaged" on climate change, attributing this to its governance by engineers.

While Carney has indicated that sensitive national security projects should remain off-limits to China, his government is also pursuing an Arctic foreign policy that is cautious of Chinese research activities in the region, which may have military implications.

China's foreign ministry has expressed a desire to strengthen ties with Canada based on mutual respect, stating that there is "a broad space for cooperation." Both Xi and Carney have expressed a commitment to uphold a rules-based international order, although their interpretations of this concept differ significantly.

In a broader context, Canada has been involved in naval exercises in the Taiwan Strait, reinforcing its stance that the area remains international territory, a move that has drawn criticism from Beijing. Foreign Affairs Minister Anita Anand has reiterated that while Canada will continue to engage with Taiwan, it remains committed to its One China policy. "Diplomacy is not walking away from tough issues. Diplomacy is being able to have the conversation about Canadian interests and Canadian values," she stated during a recent committee meeting.