Canada's Trade with China Dips 10% as PM Carney Arrives in Beijing

In 2025, Canadian exports to China saw a significant dip of 10.4%, totaling $41.7 billion, marking this as the first downturn since 2020. This decline aligns with Canadian Prime Minister Mark Carney's official visit to Beijing, the first such trip by a Canadian leader since 2017. Analysts interpret this trend as an indication of China's ongoing economic influence over Canada, as well as a reflection of heightened trade tensions.

The primary objective of Carney’s visit is to mend the trade and diplomatic gaps that surfaced in 2024, sparked by Canada's implementation of 100% tariffs on Chinese electric vehicles, mirroring U.S. moves. Carney highlighted on social platforms that China remains Canada’s second-largest trading partner, asserting that fostering a pragmatic and constructive relationship will yield stability and prosperity for both nations.

In October, Carney had previously met with Chinese President Xi Jinping in South Korea. While that meeting did not yield substantial breakthroughs, both leaders did agree to pursue advancements in bilateral relations, including the contentious issue of Canadian canola exports, which continue to face Chinese tariffs. Canadian Foreign Minister Anita Anand expressed that discussions regarding canola were fruitful and would advance, while highlighting the importance of broader collaborations to enhance economic ties.

Canada's renewed engagement with China is also a strategy to diversify its export markets amid escalating trade conflicts with the United States, exacerbated by tariffs and statements from former President Trump. In anticipation of Carney's arrival, Chinese media advised Canada to preserve its strategic independence and refrain from aligning too closely with U.S. policies, which have historically prompted tensions in bilateral relations.

During his tenure, former Prime Minister Justin Trudeau had voiced concerns regarding human rights violations in China and alleged Beijing’s interference in Canadian domestic matters, claims that were dismissed by the Chinese government. Minister Anand assured that Canada will continue to address tough topics such as human rights while concentrating on economic development and constructive trade talks.

The decline in Canadian exports is part of a larger trend, as Chinese imports from the United States also plummeted by 14.6% in 2025. Carney's trip underscores an essential effort to renew economic and diplomatic relations, navigating between trade needs and discussions on human rights and strategic cooperation.