After eight years of icy silence, the diplomatic permafrost between Ottawa and Beijing is melting. Canadian Prime Minister Mark Carney and Chinese President Xi Jinping have held their first formal meeting since 2017, declaring a "pragmatic and constructive" restart to relations on the sidelines of the APEC Summit in South Korea.

The meeting marks a significant pivot for Canada. Under the previous Trudeau administration, relations hit rock bottom following the arrest of Huawei executive Meng Wanzhou and the retaliatory detention of the "Two Michaels." Carney’s approach, described as "eyes wide open," prioritizes economic survival over ideological confrontation.

The "Carney Doctrine"

The Prime Minister’s Office released a statement emphasizing trade. "Distance is not a strategy," Carney reportedly told Xi. With the US becoming increasingly protectionist, Canada is desperate to diversify its export markets for agri-food and energy.

• The Trade Menu: The leaders instructed officials to resolve disputes over canola and seafood "immediately." In exchange, Canada appears willing to soften its stance on Chinese EV imports, a move that puts it at odds with Washington.
• The Domestic Backlash: Critics at home accuse Carney of "kowtowing" to a regime accused of foreign interference. Security agencies have warned that China remains the top threat to Canadian democratic institutions.

A Geopolitical Tightrope

Carney is walking a fine line. By re-engaging China, he risks angering the US administration. But with the Canadian economy stagnating, he seems to have calculated that the risk of isolation is greater than the risk of engagement. The dragon is back at the table.