After years of strained relations, Chinese President Xi Jinping and Canadian Prime Minister Mark Carney held their first formal talks since 2017 in South Korea on Friday, October 31, 2025, Chinese state media confirmed. This meeting signifies a potentially pivotal moment following a prolonged diplomatic freeze between the two nations.
The backdrop to these discussions is a challenging one. Canada’s relationship with China has been particularly fraught among Western nations, yet both countries have found themselves grappling with trade tariffs initiated by former U.S. President Donald Trump, despite a recent agreement between President Xi and the U.S. leader to ease some of these disputes.
A previous incident saw China stating it acted ‘in accordance with the law’ following the execution of four Canadians.
The deep diplomatic chill initially set in motion in 2018. It began with the arrest of a prominent Chinese telecom executive in Vancouver, based on a U.S. warrant. China swiftly retaliated by detaining two Canadian citizens on espionage charges, escalating the tensions significantly.
Adding to the economic friction, Prime Minister Carney had previously announced a new 25% tariff on steel imports containing Chinese-made steel in July.
In response, Beijing quickly hit back the following month, imposing a steep 75.8% temporary customs duty on canola imports from Canada.
This tariff had a considerable impact, as Canada stands as one of the world’s leading producers of canola, an essential oilseed used in various applications, including cooking oil, animal feed, and biodiesel.
Both Canada and China have consistently found themselves targeted by former President Trump’s assertive global trade policies.
A glimmer of easing trade tensions emerged recently when Mr. Trump announced he would halve fentanyl-related tariffs on China to 10%. President Xi reciprocated, agreeing to ensure continued rare earth supplies and boost imports of U.S. soybeans.
However, Mr. Trump also emphasized that the average U.S. tariff on Chinese goods still remained at a substantial 47%.
Further complicating the trade landscape, the U.S. President had also declared an additional 10% tariff increase on Canadian goods and abruptly terminated all trade negotiations with Canada.
Addressing the APEC gathering, Prime Minister Carney reflected on the evolving global trade environment, stating, "[The] old world of steady expansion of rules-based liberalised trade and investment, a world on which so much of our nations’ prosperity — very much Canada’s included — [is based], that world is gone."
Another related development saw China initiating an anti-dumping investigation into Canadian canola imports, a move perceived as a response to EV tariffs.
Relations with Japan
President Xi was also slated for a significant first meeting with Japan’s first female Prime Minister, Sanae Takaichi, during his visit.
Prime Minister Takaichi, known for her regular visits to the controversial Yasukuni shrine, which honors Japan’s war dead, and her generally firm stance on China, has recently adopted a more measured tone in her public statements.
Despite this, her inaugural policy address last Friday underscored her serious concerns regarding the military activities of China, North Korea, and Russia.
She also announced Japan’s intention to increase its defense spending to 2% of its GDP this fiscal year, two years ahead of schedule.
China swiftly responded, articulating "serious doubts among (Japan’s) Asian neighbours and the international community about whether Japan is truly committed to an exclusively defensive posture and the path of peaceful development."
Earlier, during Mr. Trump’s stop in Japan en route to Busan, Ms. Takaichi had stood with the U.S. leader aboard an American aircraft carrier, asserting that Japan faces "unprecedented" security threats.
Her political platform also includes strong support for Taiwan and advocacy for enhanced security cooperation with the self-governed island.
President Xi Jinping previously confronted Canadian PM Justin Trudeau at the G-20 over “leaked” talks.
Japanese media speculated that Prime Minister Takaichi would convey significant concerns to President Xi regarding China’s actions, particularly concerning the disputed Senkaku Islands, which China refers to as the Diaoyu Islands.
Reports also indicated she would push for the prompt release of Japanese citizens detained in China and seek assurances for the safety of Japanese expatriates residing there.
For Japanese industries, a primary concern is securing a stable supply of rare earths from China, especially given their strategic importance in President Xi’s ongoing trade negotiations with former President Trump.
Yee Kuang Heng, a professor at the University of Tokyo’s Graduate School of Public Policy, commented to AFP that the upcoming meeting might be a "frosty get-to-know-you," noting President Xi’s apparent caution toward Takaichi’s reputation as a "China hawk," which was evident in his lack of a congratulatory message.
However, Professor Heng also added that "overall though, stability is a shared priority and both sides will probably stick to the broad mantra established over the past few years of working towards a ‘mutually beneficial relationship based on common strategic interests’."