The Carney administration recently reduced tariffs on certain Chinese metal products, as well as some U.S. steel and aluminum, relieving some of the pressure on Canada’s domestic industry. By fostering a positive relationship with both Trump and Xi, Carney hopes to pave the way for a strong trade deal at the APEC summit.
By pivoting toward China under the guise of “diversification,” Carney risks weakening Canada’s alliance with the U.S. and its democratic partners. Deepening economic ties with Beijing exposes Canada to coercion, reduces leverage with Washington, and heightens risks for firms facing China’s state-driven economy.
By intentionally strengthening economic ties with China, Canada can access one of the world’s fastest-growing large-scale markets and thereby reduce over-dependence on the United States. Embracing pragmatic trade engagement with China opens up major opportunities for Canadian exporters.
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