Canada's Prime Minister Mark Carney accepted an invitation to visit China extended by President Xi Jinping, signalling a turning point in the countries' relationship.

The invite came after the two leaders met for 40 minutes on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit on Friday. It was the first meeting between a Canadian prime minister and the Chinese president since 2017.

The countries have had a strained relationship since a diplomatic row in 2018 and been locked in a trade dispute since 2024.

But as trade tensions between Canada and the US continue to rise, Carney has said the country will turn to strengthening its ties with other major economies.

He has signalled his desire to double Canada's non-US exports in the next decade, in response to President Donald Trump placing punishing tariffs on Canadian goods and critical sectors.

That includes closer trade ties with the economic giants of Asia, Carney said last week.

Speaking briefly to reporters after his meeting with Xi on Friday, Carney said he believes Canada and China have hit a turning point in relations that will yield positive developments for the Canadian economy.

Distance is not the way to solve problems, not the way to serve our people, the prime minister remarked.

In his own remarks, Xi expressed that China is willing to work with Canada to push China-Canada relations back onto a healthy, stable, and sustainable correct track that benefits both nations.

The two leaders directed their officials to act swiftly in resolving outstanding trade disputes.

A 'two-front trade war' with China and the US

The trade dispute has intensified since Canada imposed a 100% tariff on Chinese electric vehicles (EVs) in October 2024, reflecting similar actions from the US.

In retaliation, China has imposed tariffs on various Canadian agricultural products, significantly impacting farmers reliant on the Chinese market.

A brighter future in Canada-China relations would also serve as a strategic maneuver in light of continuous trade challenges presented by both major trading partners.