Carney in Beijing: What Canada's China Reset Means for Trade, EVs and Canola - SOAS China Institute

//Carney in Beijing: What Canada’s China Reset Means for Trade, EVs and Canola

Carney in Beijing: What Canada’s China Reset Means for Trade, EVs and Canola

Mark Carney, Prime Minister of Canada, addressing the World Economic Forum Annual Meeting in January 2026. – Photo credit: World Economic Forum / Ciaran McCrickard / CC BY-NC-SA 4.0

By Alexander Ayertey Odonkor | 04 February 2026

Canadian Prime Minister Mark Carney’s January 2026 visit to Beijing signalled a pragmatic turn in Canada–China relations, driven as much by tariff politics at home as by shifting trade risks abroad. The early outcomes point to a managed détente: partial tariff relief, clearer channels, and a renewed contest over how far “economic reset” can go. 

 

A rare visit, a familiar problem: over-reliance on the US 

 

Prime Minister Mark Carney’s visit to Beijing from 14–17 January 2026 was Canada’s first prime-ministerial trip to China since 2017. In Ottawa, the immediate backdrop was growing uncertainty in Canada’s external trade environment—above all the volatility created by US tariff politics—strengthening the case for diversifying markets without pretending the China file has become simple.  

 

Prairie pressure: canola, pork and the domestic politics of “reset” 

 

Carney arrived in Beijing with a clear domestic constraint: the prairie provinces’ exposure to China’s market access decisions, particularly for canola. In late 2025, Manitoba Premier Wab Kinew and Saskatchewan Premier Scott Moe publicly urged the federal government to reconsider Canada’s 100% tariff on Chinese-made electric vehicles, arguing that the EV tariff had become entangled with Chinese duties on Canadian agriculture.  

 

Kinew, in particular, framed the situation as a “two-front” trade squeeze for Western Canada—caught between the defence of Ontario’s auto base and the prairie provinces’ reliance on agricultural exports.

 

What actually changed in Beijing: tariff relief with guardrails 

 

The headline outcome of the Beijing visit was a preliminary trade understanding linked to de-escalation on both sides. According to the Prime Minister’s Office, Canada expects China to lower combined tariffs on Canadian canola seed to around 15% by 1 March 2026, down from roughly the mid-80% range cited during the tariff dispute.  

 

In return, Canada will allow up to 49,000 Chinese EVs into the Canadian market at the most-favoured-nation tariff rate (6.1%), replacing the 100% tariff applied during the period of heightened trade frictions.  

 

Ottawa also signalled expectations that some agri-food products (including canola meal and peas, alongside selected seafood) would not be subject to the relevant “anti-discrimination” measures for at least part of 2026—though, as with any “agreement-in-principle”, the durability will depend on implementation and politics on both sides.  

 

The trade baseline: big volumes, persistent imbalance 

 

Canada’s economic relationship with China remains substantial, but structurally uneven. The Prime Minister’s Office puts two-way merchandise trade in 2024 at roughly C$119bn, with Canadian exports around C$30bn and imports around C$89bn.

 

That scale is precisely why both governments can present “stabilisation” as economically rational—even as strategic mistrust and values-based disagreements remain unresolved. 

 

Public opinion is softening—but not sentimental 

 

A further enabling condition for a reset is changing Canadian public sentiment. An Ipsos poll (released 9–10 January 2026) found 54% of Canadians supported closer trade ties and economic agreements with China—a notable shift from the mood at the height of the “two Michaels” crisis. The poll also suggests this is less a sudden surge of warmth towards Beijing than a recalibration driven by anxiety over Canada’s US trade exposure.

 

People-to-people links: the ballast most strategies forget 

 

If the Beijing reset is to outlast the next shock, people-to-people exchanges will matter as much as tariff schedules: education, tourism, cultural links, and diaspora connections help to stabilise a relationship that otherwise swings between commercial pragmatism and political rupture. Canada’s large Chinese-Canadian community is part of that long-term social infrastructure—and a reminder that “China policy” is never purely foreign policy.

Alexander Ayertey Odonkor is the Director of the Ghana Centre for China Studies. Alexander is a global economist with keen interest in the social, environmental and economic landscape of developed countries, emerging markets and developing economies particularly in Asia-Pacific, Africa, Europe and North America. He holds a master’s degree in Finance and a bachelor’s degree in Economics and Finance, together with a comprehensive postgraduate education, spanning entrepreneurship, environmental and social management, mining, risk management, electronic trading, and business management pursued at Harvard University, Massachusetts Institute of Technology, Curtin University, University of Adelaide, New York Institute of Finance and Delft University of Technology, respectively.

The views expressed on this blog are those of the author(s) and are not necessarily those of the SOAS China Institute.

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