Xi and Carney, meeting in South Korea, try to rebuild China-Canada relations

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GYEONGJU, South Korea (AP) — The leaders of China and Canada took a step toward mending the long-fractured ties between their countries on Friday.

Chinese President Xi Jinping and Canadian Prime Minister Mark Carney, meeting in South Korea during an Asia-Pacific summit, called for improving ties in a pragmatic and constructive manner, according to both sides.

“The leaders agreed that their meeting marked a turning point in the bilateral relationship,” a Canadian statement said.

Xi was quoted as saying that relations are showing signs of recovery, thanks to the joint efforts of both sides.

“We are willing to work together with Canada to take this meeting as an opportunity to promote the return of bilateral relations to a healthy, stable and sustainable track as soon as possible,” Xi said, according to an official report distributed by China's state media.

Carney, who became prime minister in March, accepted an invitation from Xi to visit China, the Canadian statement said, without specifying any date.

Carney also later told reporters he was “very pleased” with the outcome.

“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," he said.

Relations took a nosedive in late 2018 after Canadian authorities arrested a senior executive of Chinese tech giant Huawei as a part of its extradition agreement with the United States. China then arrested two Canadian citizens and charged then with espionage.

Ties didn't improve much even after the 2021 release of the two Canadians, Michael Kovrig and Michael Spavor, and the Chinese executive, Meng Wenzhou, who is the daughter of Huawei's founder.

More recently, relations have been shaken by Canada's decision to levy a 100% tariff on electric vehicles from China in 2024 and a 25% tariff on steel and aluminum. China has offered to remove its import taxes on some Canadian products if Canada drops the EV tariff.

Canada made the move last in tandem with the U.S.

The Canadian statement said that both leaders directed their officials to move quickly to resolve trade issues and irritants and discussed solutions for specific products such as EVs, canola and seafood.

Xi called for expanding “pragmatic” cooperation in areas such as the economy, trade and energy. Both Canada and China have been hit by tariffs imposed by U.S. President Donald Trump.

Canadian canola producers, seafood exporters and pork farmers are dealing with steep Chinese tariffs in retaliation for the 100% tariff Canada imposed on Chinese electric vehicles, batteries and other goods last year.

China’s ambassador in Ottawa recently said Beijing would drop its levies if Ottawa cancels the EV tariffs.

The attempt at rapprochement comes as Carney looks to double Canada's non-U.S. exports in the next decade and as Trump says he plans raise tariffs on imports of Canadian goods by an extra 10%. Canada's free trade agreement with the U.S. is up for review.

“The Trump administration is very likely to resent this rapprochement between Canada and China but the White House’s protectionist policies are at least partly to blame for it, something U.S. officials should know," said Daniel Béland, a political-science professor at McGill University in Montreal.

“Removing EV tariffs on China and allowing for the sale of Chinese EV vehicles would probably infuriate the Trump White House but moving in that direction would also send a strong message about the rapprochement between Canada and China while making more affordable EV cars accessible to Canadian consumers.”

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Gillies contributed to this report from Toronto.