Canada and China Establish New Strategic Partnership and Energy Pact

BEIJING, China — Prime Minister Mark Carney ended a historic state visit to Beijing today, signaling a definitive end to the diplomatic frost that has persisted for nearly a decade. It’s the first time a Canadian leader has touched down in China for official talks in more than eight years. The visit resulted in a new strategic partnership focused on what Carney called a "new world order" designed to navigate the pressures of U.S. trade policy.

During the meetings, both nations signed a series of energy agreements that could facilitate increased Chinese investment in Canadian resources. This energy pact is expected to increase the flow of Canadian oil and liquefied natural gas to Chinese markets. The most immediate impact of the talks involves a massive reduction in tariffs.

Canada will now permit the entry of 49,000 Chinese electric vehicles at a 6.1 percent tariff rate, which is a significant drop from the prior 100 percent. China reciprocated the move by slashing its own 100 percent tariff on Canadian canola down to 15 percent. President Xi Jinping described the dialogue as achieving positive results for both economies.

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