Minister Joly Hints Ottawa Seeking Free Trade With China

Udumbara Udumbara
Jan 16, 2026 - 10:48 Updated: Jan 16, 2026 - 04:11
0
Minister Joly Hints Ottawa Seeking Free Trade With China

.

Industry Minister Mélanie Joly says Canada should pursue free trade with other countries, including China, in the face of rising U.S. protectionism.

Joly made the comment in Beijing on Jan. 15 after a day of meetings in the Chinese capital, which included the signing of bilateral agreements and a meeting between Prime Minister Mark Carney and Chinese Premier Li Qiang.

“To counter the rise of protectionism, certainly the rise of U.S. protectionism, Canada must be able to work with different countries on free trade approaches,” Joly said. “Certainly with Europe, certainly with Asia, and also with China, because if we can’t work in a multilateral way with multiple countries, we’re going to be even more dependent towards the United States.”

Carney’s visit to China has been framed by the Canadian government as a way to “recalibrate” the relationship with Beijing after years of frosty ties.

The visit also comes as Ottawa is seeking to double non-U.S. exports and attract new investments as it faces tariffs imposed by U.S. President Donald Trump.

Canada had pursued free trade and closer ties with China under the government of Prime Minister Justin Trudeau. Efforts at a closer relationship stopped after Canada executed a U.S. extradition warrant on a Huawei executive in late 2018. China then detained two Canadians for more than 1,000 days in apparent retaliation.

Joly said businesses are now looking for more stability and reliability amid the “unpredictability” of the United States and this is why she and other ministers took part in trade discussions in China with industry stakeholders. This was meant to increase Chinese investments in Canada and increase Canadian exports to China, she said.

Joly linked the situation in the United States with the recent events occurring in Venezuela and Iran, highlighting a trend of global unpredictability.

“We’ve seen since the beginning of the year, there’s lots of disruptions around the world, maybe Venezuela, maybe Iran, maybe, obviously, a lot of unpredictability south of our border,” she said. “There are a lot of things that we cannot control, but there are lots of things we can control, and we'll focus on what we can control, and who we do business with is something we can control.”

Changing Tone

Canadian ministers have described the relationship with China in increasingly positive terms since Foreign Affairs Minister Anita Anand visited Beijing in mid-October 2025. She said after her trip that Canada and China were in a “strategic partnership.”
Previously, during the April 2025 election campaign, Carney had called China the “biggest security threat” facing Canada due to its extensive involvement in foreign interference.

After Carney met with Chinese Leader Xi Jinping in late October, he said the relationship was at a “turning point,” a term also used by Xi.

Joly and the Chinese regime on Jan. 15 declared a “new era” of partnership between Canada and China.

“We’re both happy to be part of this important delegation. Why? Because, of course, this is a new year, and we’re now in a new era of partnership with China,” Joly said speaking alongside Energy Minister Tim Hodgson.

Hodgson read quotes to reporters he captured during the day coming from Chinese high-level officials. He relayed what a chairman of a standing committee had said, presumably Zhao Leji, chairman of Standing Committee of the National People’s Congress of China: “It is a new era in the relationship between Canada and China. It is a full turnaround in our relationship.”

“We desire a new strategic partnership with Canada,” Hodgson said, reporting words from Premier Li Qiang, who met with Carney on Jan. 15.

Hodgson touted a memorandum of understanding he signed with a Chinese official for the use of more Canadian timber in Chinese construction.

“This is just the beginning. There’s more to come. 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.

The two ministers did not provide new information about the trade conflict between the two countries. China has targeted Canadian agricultural and seafood products in retaliation for Canada placing duties on Chinese steel, aluminum, and electric vehicles.

Joly said that negotiations are ongoing, and more would be announced on Jan. 16 when Carney speaks with reporters. The prime minister is scheduled to meet with Chinese leader Xi Jinping on Jan. 16 and attend a gala dinner hosted by the Canada China Business Council.

Conservative MPs have criticized Carney’s trip and messaging used to promote closer ties with China.

“China is ruled by a communist dictatorship currently perpetrating genocide,” wrote MP Matt Strauss on X , in reaction to Carney’s post announcing his arrival in China where Carney said Canada is ready to build a “new partnership” with China.

Tory MP Roman Baber commented that 5 percent of Canada’s exports go to China while 80 percent go to the United States.

“Instead of striking a deal [with] our best customer, Carney is throwing our economy by cozying up to Communists who abuse human rights & undermine our democracy,” he said on X.

Washington has yet to comment on Carney’s visit to China, but Trump called the United States-Mexico-Canada Agreement (USMCA) on free trade “irrelevant” on Jan. 13, the day Carney was leaving for Beijing.

The USMCA is set to be renegotiated later this year. Carney has called this trade agreement the “best deal” after being unable to achieve lower sectoral tariffs through negotiations. Carney said 85 percent of cross-border trade is tariff-free because of USMCA.

‘Disruptive’ Power

Joly and Hodgson’s press conference comes a day after Anand spoke to reporters in Beijing.
Anand was pressed on whether the Carney government still considers China an “increasingly disruptive global power,” a term used in Ottawa’s Indo-Pacific Strategy released in 2022.

Anand would not give a ‘yes’ or ’no' answer, but said, “This is a new government with a new prime minister, a new foreign policy, in a new geopolitical environment.”

Joly, who was foreign minister at the time when the Indo-Pacific Strategy was released, was also asked about whether Ottawa views China as “disruptive.”

“Currently there are many countries that are disruptive powers,” she said.

.

Read More