Finance Minister François-Philippe Champagne is on a trade mission to China, an attempt to woo a crucial trading partner as Canada looks to shore up friends and strengthen the country’s economy.
The visit by Champagne builds on a meeting between Prime Minister Mark Carney and Chinese President Xi Jinping in the country in January, according to the finance minister’s office.
China has suddenly become critical for many countries, including Canada, as U.S. President Donald Trump’s trade policies have alienated his country’s traditional allies, forcing them to look for new partnerships and increase collaboration with the world’s second-largest economy — though the relationship is not without its challenges.
‘You have to engage’: Champagne
Champagne is meeting with high-level leaders in the financial sector and Chinese government counterparts on a two-day visit to Beijing to “build strategic partnerships and attract new investments as part of Canada’s broader diversification imperative,” a ministry news release said.
“Everyone has found a strategic way to engage with China,” said Champagne, several days before the visit, referring to his G7 counterparts. “China is the second-largest economy and our second-largest trading partner, so you have to engage.”
Canadian Finance Minister François-Philippe Champagne is visiting China this week where he’ll meet with government and business leaders in a bid to attract new investments and build partnerships, his office said in a news release.
The total merchandise trade between the two countries was valued at $124.8 billion in 2025, almost five per cent higher than the previous year. However, there is a substantial trade imbalance between the two countries.
Canada’s trade deficit
Last year, Canadian merchandise experts to China totalled $34.1 billion, while imports from there were $90.1 billion (though both rates were higher than in 2024).
Many Canadians who facilitate business in China see the new chapter in bilateral relations as a long-awaited opportunity to close the gap on the trade deficit as Canada works toward the goal Carney set of increasing exports to China by 50 per cent by 2030.
“It is a significant market that cannot be substituted or replaced. And especially for a country like Canada that trades a lot of commodities,” said David Perez-Des Rosiers, director of the Canada-China Business Council’s (CCBC) Beijing chapter, noting China has approximately 1.4 billion people.
Perez-Des Rosiers pointed to China’s latest five-year plan as a roadmap for Canada. The policies, which were officially adopted into government policy at the latest “two sessions” meetings, included emphasizing boosting slumping domestic consumption — something Canada could capitalize on, he says.
In order to do that, he says the CCBC has long been advocating for more visits between ministers in order to stabilize or “build a predictable business environment.”
In January, Carney secured a deal with Xi allowing 49,000 Chinese electric vehicles into Canada at a reduced tariff rate of 6.1 per cent — down from 100 per cent — in exchange for reduced or removed tariffs on agricultural products like canola meal until the end of 2026. However, there is still a 25 per cent retaliatory tariff on Canadian pork.
At that news conference in Beijing months ago, Carney encapsulated the relationship going forward.
“It’s a partnership that reflects the world as it is today with an engagement that’s realistic, respectful and interest-based,” he said.
That engagement, however pragmatic, does trickle down to each country’s citizens, says Xiang Songzuo, economist and professor at the Renmin University School of Finance in Beijing.
“A good relationship between two countries [is] not only important in terms of economy, trade, oil, gas … but also for people of two countries,” Xiang told CBC News.
Soft power thaw
To that end, there has been progress on people-to-people ties.
In November, China put Canada back on its approved destination status list, allowing group tours there again.
In turn, China extended visa-free travel for up to 30 days to Canadian tourists and business travellers.
However, there are still challenges to be overcome. Perez-Des Rosiers says he is hoping Champagne will talk about the existing pork tariffs.
And there are other, more nuanced conversations, on issues such as human rights, that will inevitably need to be addressed at some point.
“The two countries actually also disagree on a lot of issues,” said Zichen Wang, a research fellow and director for international relations at the Center for China and Globalization based in Beijing.
“It’s very different political systems, also in values. The two sides will also have to manage their differences in those areas.”
If anything is an indication of that, the recent forced labour controversy that has dogged Carney is as clear an example as any. Earlier this week, he defended Canada’s efforts on keeping products made with forced labour out of the supply chain after Michael Ma, one of his newest MPs, continued to face backlash for appearing to cast doubt on the practice in China.
On Monday, Carney said Canada “has the most rigorous set of engagements on the issue” and said he believes the issue of forced labour will be part of conversations Champagne has while in China.
“Issues of supply chain integrity, including forced labour and child labour and ensuring that those standards are in place will be part of those discussions, I’m certain,” he said.
Champagne himself did not directly say whether he would bring it up during his meetings.
“We condemn forced labour in all its forms anywhere in the world,” he said.
