China and Canada Seek to Mend Ties as Xi and Carney Meet at APEC Summit

Leaders Convene at APEC Summit in South Korea

Chinese President Xi Jinping and Canadian Prime Minister Mark Carney met on Friday, October 31, 2025, during the 32nd Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Gyeongju, South Korea. This significant bilateral discussion, lasting approximately 39 minutes, marked the first formal talks between the leaders of the two nations since 2017, signaling a mutual intent to mend fractured relations and explore avenues for renewed cooperation.

A 'Turning Point' for Bilateral Relations

Both leaders characterized the meeting as a crucial step towards improving the strained relationship between China and Canada. President Xi Jinping noted that, thanks to joint efforts, China-Canada relations had shown a 'trend of recovery and positive development,' expressing China's willingness to work with Canada to bring relations 'back onto the right track' for sound, steady, and sustainable development. Prime Minister Carney echoed this sentiment, describing the encounter as a 'turning point' that creates opportunities for Canadian families, businesses, and workers, while also establishing a path to address existing issues. Carney accepted President Xi's invitation for a state visit to China at a mutually convenient time, further underscoring the commitment to re-engagement.

Addressing Years of Diplomatic Strain

The bilateral relationship between China and Canada has faced significant challenges in recent years. Tensions escalated following the 2018 arrest of Huawei executive Meng Wanzhou in Vancouver at the request of the United States, which led to China's subsequent detention of two Canadians, Michael Kovrig and Michael Spavor. More recently, allegations of Chinese interference in Canadian elections and attempts to intimidate lawmakers in 2023 further strained diplomatic ties. Trade disputes have also been a point of contention, including Canadian tariffs on Chinese electric vehicles and China's retaliatory duties on Canadian agricultural products like canola, pork, and seafood.

Pathways for Future Cooperation

During their discussions, President Xi and Prime Minister Carney directed their officials to 'move quickly to resolve outstanding trade issues and irritants.' Specific sensitivities discussed included agriculture and agri-food products (such as canola), seafood, and electric vehicles. Beyond resolving existing disputes, the leaders also explored a framework to deepen cooperation across a range of areas. These include

• clean and conventional energy
• agriculture
• manufacturing
• climate change
• international finance

The meeting highlighted a shift in Canada's approach, with Ottawa now identifying China as a 'strategic partner in a turbulent world,' moving away from its previous characterization of China as a 'disruptive global power.' Prime Minister Carney also indicated Canada's broader strategy to diversify its trade, aiming to double non-U.S. exports over the next decade, acknowledging that the 'old world of steady expansion of rules-based, liberalized trade and investment... is gone.'