Prime Minister Mark Carney will meet with Chinese President Xi Jinping in South Korea today, marking the first serious talks between the leaders of the countries in seven years.
Driving the news: Canada is looking for a total reset of bilateral relations, which have been icy for a while. The meat of the talks will be about Canada’s 100% tariff on Chinese-made EVs, and the punitive tariffs on Canadian canola and seafood products China levied in response. China’s ambassador has said it would lift them if Canada nixes the EV tariff.
- Such a deal is likely still far off, but experts believe China could signal its willingness to play ball by putting Canada back on its list of approved destinations for group tours.
Zoom out: While Canada has struggled to ease tensions with the U.S. and China, the two superpowers have made nice, agreeing to a one-year trade truce that will see the countries pause export restrictions on chips and critical minerals, and a mutual reduction in tariffs.
- The U.S. treasury secretary also said China had signed off on the deal to transfer TikTok to an American ownership group, which will go forward in the coming months.
Why it matters: Canada is no longer a top priority for the U.S. in trade talks. Ottawa can’t afford to let this happen with China, its second-largest trade partner, as it looks to expand its economic horizons beyond our southern neighbour. This means walking the razor-thin line of appeasing Beijing without totally capitulating.—QH