Prime Minister Mark Carney speaks during a meeting with the Chairman of the Standing Committee of the National People's Congress of China Zhao Leji (not pictured), at the Great Hall of the People, in Beijing on Thursday.Carlos Osorio/Reuters
Prime Minister Mark Carney’s government said Thursday it would welcome more Chinese investment in Canadian energy, including the oil sands, during a visit to Beijing that the Asian giant’s Premier called a “new starting point” for bilateral relations.
Mr. Carney, in search of more investment and markets for Canada to offset damage done by U.S. protectionist tariffs as he continues his first trip to China as Prime Minister this week, released a blueprint for warmer and closer relations with Beijing.
In a joint announcement with the Chinese government, Canada said it will welcome Chinese investments in Canada in areas including energy, agriculture and consumer products as part of a joint “economic and trade co-operation road map.”
Ottawa and Beijing also signed a memorandum of understanding on “strengthening energy co-operation,” a deal that follows rising petroleum exports to China from Canada. China’s PetroChina received delivery of liquefied natural gas from Canada’s first LNG export facility in 2025 and Chinese buyers have ramped up purchases of Canadian oil over the last year.
Canadian flags flew over Tiananmen Square on Thursday as the Prime Minister was received by Chinese Premier Li Qiang at Beijing’s Great Hall of the People. China’s Foreign Minister, Wang Yi, declared that Mr. Carney’s visit to China marked a “turning point” in relations after years of strained ties. Premier Li called the visit a new beginning for Canada-China ties.
Unlike other first visits by prime ministers, Mr. Carney skipped cultural events such as visiting the Great Wall of China and instead focused on meetings with businesses and political leaders.
Mr. Carney is still seeking a breakthrough in a punishing trade war with China triggered by 2024 Canadian tariffs on Chinese electric vehicles that prompted retaliation on Canadian agricultural products from canola to seafood. China’s ambassador has made it clear Beijing would remove levies if Canada scraps the EV tariff.
Prime Minister Mark Carney and China's Premier Li Qiang react as Minister of Agriculture Heath MacDonald shakes hands with Chinese minister Sun Meijun at a signing ceremony in Beijing Thursday.Carlos Osorio/Reuters
The MOU inked Thursday, which is non-binding, cited energy security and the transition to low-carbon energy systems as goals but said petroleum has a part to play in the meantime.
Signed by Energy and Natural Resources Minister Tim Hodgson for Canada, the MOU said both countries “recognize that conventional energy continues to play an important role in the energy transition” and agree to “strengthen exchanges in areas such as oil and gas resources development, including crude oil, liquefied natural gas and liquefied petroleum gas trade.”
The agreement said both countries acknowledge Canada as an “important potential partner in responsibly produced and reliable global oil, LNG, and LPG supply and will explore opportunities for mutually beneficial co-operation based on market principles.” LPG refers to liquefied petroleum gas.
The pact, which builds on previous agreements, also promotes Canadian uranium sales to China, saying the two countries aim to “strengthen co-operation in natural uranium trade.”
As Mr. Carney introduced the Canadian delegation to Premier Li Thursday, the Prime Minister pointed to Saskatchewan Premier Scott Moe and said his province has lots of uranium.
Mr. Hodgson, speaking to reporters in Beijing, said Canada welcomes Chinese investment in energy, including conventional energy such as the oil sands.
“Today, China is a major investor in the oil sands, both as an operator and as a passive investor. They desire to have more of our energy. As long as they’re a responsible producer, we’re open to more investments,” the minister said.
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Canada closed off the oil sands to investment by state-owned foreign companies, including those in China, in 2012 under former prime minister Stephen Harper, but the Trudeau government subsequently said it would welcome Chinese investment in the oil sands, without adding caveats about ownership.
On Thursday, Mr. Hodgson didn’t put any caveats or restrictions on where China might invest in the energy sector.
“They are an investor in our first LNG project. They are going to be an investor in our second LNG project, and they are a major user of our conventional oil and gas,” he said.
He said Canada and China, however, are both committed to achieving “net zero,” in carbon emissions.
“We believe we have lots of common interests with respect to how we use clean energy to get there, and we have common interests around how to get there on a conventional basis, and we’re going to exploit that for the benefit of Canadian workers and for Canadians.”
Energy Minister Tim Hodgson said China is looking for reliable trading partners who don't use energy for coercion, and Canada has energy the world, including China wants.
The Canadian Press
Mr. Hodgson said Beijing wants dependable sources of energy.
“What we heard loud and clear is China is looking for reliable trading partners, trading partners that don’t use energy for coercion,” he said. The Minister did not elaborate on this statement.
He said China likes the smaller environmental footprint of Canada’s LNG.
“Canada has the lowest carbon intensity LNG in the world, and we are decarbonizing our barrels, and more aggressively looking to decarbonize our barrels than any other country in the world. That’s consistent with the values of many of our trading partners, including the Chinese.”
Mr. Carney wraps up his China visit Friday, when he will meet with President Xi Jinping. He leaves the country Saturday morning.
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Mr. Carney and his ministers met with six companies Thursday including state-owned commercial bank Industrial and Commercial Bank of China, state-owned energy company China National Petroleum Corporation, e-commerce giant Alibaba Group and Contemporary Amperex Technology, which specializes in lithium-ion batteries for electric vehicles and energy storage systems.
The Prime Minister told his hosts he was pleased with the warming ties after years of ruptured relations.
“We’re heartened by the leadership of President Xi Jinping and the speed with which our relationship has progressed,” Mr. Carney told China’s top legislator, Zhao Leji, who is also among the top leadership in Beijing’s ruling Communist Party.
“It sets the stage for these important discussions on a wide range of issues where we can be strategic partners from energy to agriculture, to people-to-people ties, multilateralism, to issues on security.”
In all, Canada signed five MOUs on co-operation with China on Thursday – some of which were updates and renewals of previous memorandums on the same topics – plus one letter of intent on tourism. One promotes co-operation on construction with wood and another on food safety and plant and animal health. Another was a renewal of an agreement on combatting crime.
Foreign Affairs Minister Anita Anand says Prime Minister Mark Carney's trip to Beijing is about boosting trade and refreshing Canada's relationship with China.
The Canadian Press
Editor’s note: A previous version of this article incorrectly stated that petroleum exports were to Canada from China. Exports mentioned are to China from Canada.