Carney in China: Ottawa and Beijing Sign MOUs on Energy, Lumber

Carney in China: Ottawa and Beijing Sign MOUs on Energy, Lumber

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Canada and China have signed several agreements to cooperate in areas such as oil, gas, and lumber, as Prime Minister Mark Carney and several of his cabinet ministers meet with Chinese officials in Beijing.

Energy Minister Tim Hodgson told reporters in Beijing on Jan. 15 that Ottawa signed eight agreements with China that day. Hodgson said he signed a memorandum of understanding (MOU) with China’s National Energy Administration, as well as an MOU around the use of more Canadian wood in Chinese construction.

“This is not a one-and-done. We will be back here more, looking for more ways to get Canadian products into this country so more Canadians have good-paying jobs,” Hodgson said.

No deals have been announced on electric vehicles or agriculture tariffs imposed by China on Canada. Carney is set to meet with Chinese leader Xi Jinping on Jan. 16, and is expected to speak with reporters afterwards.

Carney met with Chinese Premier Li Qiang and Zhao Leji, chairman of the standing committee of the National People’s Congress, on Jan. 15. Carney also met with several businesses, including Alibaba, China National Petroleum, EV battery company Contemporary Amperex Technology, Primavera Capital Group, and China’s state-owned commercial bank, ICBC.

Following Carney’s meeting with Li, the Prime Minister’s Office (PMO) said the two leaders discussed “changes in the global economy, including challenges impacting international trade and global supply chains, and the opportunities for Canada and China to cooperate.”

Carney and Li signed a series of MOUs in the areas of “energy, combatting crime, modern wood construction, culture, and food safety and plant and animal health,” as part of “a new strategic partnership,” the PMO said.

Carney also indicated potential further cooperation in the energy and agriculture sectors, the PMO said, adding that the two sides welcomed the renewal of engagement across areas such as “economic and financial issues, energy, security, and culture and people-to-people ties.”

Chinese state-run media Xinhua reported on Jan. 15 that Li said China is “willing to strengthen cooperation with Canada in areas such as clean energy, digital technology, modern agriculture, aerospace, advanced manufacturing and finance, to foster more new drivers of economic growth.”

The report said Carney and Li witnessed the signing of “multiple cooperation documents covering trade, customs, energy, construction, culture, and public security.”

“We desire a new strategic partnership with Canada,” Li said, according to Hodgson.

When asked by reporters in Beijing whether China is the right kind of partner for Canadian industries, given foreign interference, espionage, and human rights concerns, Industry Minister Mélanie Joly said, “We’re eyes wide open. We know this, but there’s been investments by Canadian companies for years.”

Conservatives have criticized the Liberal government’s approach to China and Carney’s trip to Beijing.

“China is ruled by a communist dictatorship currently perpetrating genocide,” Conservative MP Matt Strauss said on X on Jan. 14. “There is nothing realpolitik about forming a ‘partnership’ with them.”
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Minister of Industry Melanie Joly and Minister of Energy and Natural Resources Tim Hodgson talk to reporters in Beijing, China on Jan. 15, 2026. The Canadian Press/Sean Kilpatrick
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LNG, Oil

Joly told reporters “there’s still negotiating happening” on Chinese electric vehicle tariffs. She said the prime minister will be able provide greater clarity on this subject after meeting with Xi on Jan. 16. She noted her team has been working on a “new auto strategy” to ensure auto production in Canada is favoured.

Hodgson also told reporters that China will be an investor in LNG Canada Phase 2, as state-owned PetroChina is a partner in the joint venture of LNG Canada Phase 1. LNG Canada in B.C. became Canada’s first operational export terminal for liquified natural gas last summer.

Ottawa referred Phase 2 of the project to the Major Projects Office for steering in September. LNG Canada had not made a final investment decision about launching Phase 2 at the time.

When asked by reporters whether Canada is open to more investment from China in the oil sands, noting the Canadian government shut the oil sands off to further investment from China in 2012, Hodgson said China is “a major investor in the oil sands, both as an operator and as a passive investor.” He said that as long as China is a “responsible producer, we’re open to more investment from China.”

“Let me be clear—we are here because we share a goal. We share a goal on getting to net-zero,” Hodgson said. “We believe we have lots of common interests with respect to how we use clean energy to get there, and we have common interests on how to get there on a conventional basis.”

Conservative MP Dean Allison criticized Hodgson’s comments, saying “net zero” for Canada means “net advantage” for China.

“Ah yes — shared goals. Canada gets carbon taxes, higher energy bills, and industrial decline. China gets two new coal plants every week,” Allison said in a Jan. 15 post on X. “Net zero for us. Net advantage for them. Genius strategy. Truly world-class naïveté.”
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The Canadian Press contributed to this report.
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