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With Trade Deal, Canada Bets on China

10 1
21.01.2026

Welcome to Foreign Policy’s China Brief.

The highlights this week: China strikes a trade deal with Canada, China’s birthrate reaches record lows, and progress continues on a Chinese mega-embassy in the United Kingdom.

Welcome to Foreign Policy’s China Brief.

The highlights this week: China strikes a trade deal with Canada, China’s birthrate reaches record lows, and progress continues on a Chinese mega-embassy in the United Kingdom.

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Last Friday, Canada and China struck a preliminary trade deal that would open the Canadian market to Chinese electric vehicles and lower Chinese retaliatory tariffs on key Canadian agricultural exports. Ottawa has framed the move as an attempt to reposition Canada in a “divided and uncertain world” and to guard against the volatility of the United States under President Donald Trump.

It’s a remarkable development given how Canada-China relations deteriorated after 2018, when Canada arrested Huawei executive Meng Wanzhou (at the Trump administration’s request) and China retaliated by detaining two Canadian citizens, sparking a three-year diplomatic crisis.

The deal will undoubtedly revive accusations of malign Chinese influence and Canadian perfidy........

© Foreign Policy