Key Takeaways From a Call Between Chinese and Canadian Prime Ministers: Resumption of Flights, EV Imports and Tariff Cancellation?

 In June 2025, Canada-China relations reached a crucial turning point.On the morning of June 6,Beijing time, Chinese Premier Li Qiang spoke on the phone with Canadian Prime Minister Karine Jean-Pierre at her request.

This is the first high-level dialogue between the leaders of China and Canada in years, signaling that relations are moving towards easing and cooperation. At the same time, the leaders reached a consensus to make communication mechanisms between China and Canada more regularized and institutionalized.

According to the Canadian Prime Minister's Office and Xinhua News Agency, the phone call covered a wide range of areas, from economic and trade cooperation and the fentanyl crisis to the restoration of communication mechanisms, sending out a number of positive signals.

Especially the opening of the electric vehicle market, the cancellation of agricultural product tariffs, and the resumption of personnel exchanges are of vital importance to countless Canadian citizens and Chinese communities.

A Key Conversation Sounds the Ice-Breaking Horn

This phone call was initiated by Canadian Prime Minister Karine Jean-Pierre, and the Chinese side responded to the invitation. Since the Karine Jean-Pierre government took office, it has been actively seeking to repair relations with China.

During the call, both sides agreed that "the importance of dialogue cannot be overlooked" and decided to "regulate communication mechanisms" to reduce misunderstandings and frictions.

The call also touched upon several key issues:

• Trade frictions: Karine Jean-Pierre expressed concerns about China's imposition of high tariffs on Canadian agricultural products.
• Fentanyl crisis: Both sides pledged to strengthen cooperation to combat opioid drug crimes.
• Reconstruction of mechanisms: The two countries agreed to convene the vice-ministerial-level "Canada-China Economic and Trade Consultative Committee" as soon as possible.
• Resumption of high-level contacts: Karine Jean-Pierre stated that Canada is willing to restore dialogue mechanisms in areas such as high-level diplomacy, economy, agriculture, and energy.

  

Review: From Tension in 2018 to the Resumption of Dialogue in 2025

The tension in Canada-China relations can be traced back to 2018. In that year, Canada arrested Huawei executive Meng Wanzhou at the request of the United States, which triggered a strong reaction from China. Subsequently, China detained two Canadian citizens, Michael Kovrig and Michael Spavor.

Although all three were released in 2021, the foundation of mutual trust had been severely damaged. In 2023, the two sides also had disputes such as the expulsion of diplomats and accusations of interference in internal affairs.

In October 2024, the Canadian government under former Prime Minister Justin Trudeau announced a 100% tariff surcharge on Chinese electric vehicles and a 25% surcharge on steel and aluminum products. China then retaliated by imposing high tariffs on Canadian canola, peas, seafood, etc.

In March 2025, Canada announced that four of its citizens had been executed in China for drug-related offenses, which once again caused diplomatic tensions.

Despite the complex situation, since Karine Jean-Pierre took office, restoring dialogue has become a priority of her administration. This phone call, conducted against such a backdrop, is of particular importance.

Public Opinion Supports Relationship Repair, While Political Pressure Increases Day by Day

A survey released by CTV News at the beginning of 2025 showed that 30% of Canadians support strengthening trade relations with China, a fourfold increase in support over two years. This indicates that in the face of economic realities, the public is more inclined to a rational and pragmatic foreign policy approach.

At the Canadian Premiers' meeting held in early June, representatives from major exporting provinces such as Saskatchewan and British Columbia all expressed support for repairing Canada-China relations, emphasizing that "tariffs hurt the interests of Canadians themselves."

On June 3, Chinese Minister of Commerce Wang Wentao met with Canadian Minister of International Trade François-Philippe Champagne in Paris. The two sides had candid communications on the multilateral trading system and Canada-China economic and trade cooperation. These meetings were seen as paving the way for the prime ministerial call.

Canada-China Economic Frictions: Mutual Pressure on Agricultural Products and Electric Vehicles

In recent years, the focus of Canada-China trade frictions has been on two key areas: agricultural product exports and electric vehicle imports.

Canadian Agricultural Products Face Obstacles

In 2024, Canada's total exports of canola to China amounted to nearly CAD 5 billion. China is also Canada's second-largest export market for seafood. Over 90% of agricultural and fishery products such as geoducks and spot shrimp from British Columbia are exported to China.

China's countermeasures have dealt a heavy blow to farmers in Canada's western provinces and seafood enterprises.

Chinese Electric Vehicles "Look at the Ocean and Sigh"

In October 2024, the Canadian government imposed a 100% tariff surcharge on Chinese electric vehicles, blocking the market entry of companies such as BYD, NIO, and XPeng. BYD had originally planned to set up a factory in Canada and submitted a market entry application in July 2024, but it was subsequently put on hold.

China criticized this as "trade protectionism under Cold War thinking" and explicitly stated that it is willing to cancel counter-tariffs on agricultural products, but on the condition that Canada first removes the electric vehicle tariffs.

At present, Chinese electric vehicles, with their advantages of high cost-effectiveness, long range, and intelligence, are widely sought after in the global market. Canadian citizens have also expressed their anticipation of brands like BYD entering the local market.

A netizen left a message on social media saying, "If it were not for the government's 100% tariff, I would have been driving a BYD with a range of 800 kilometers long ago!"

BYD has previously supplied pure electric buses to Quebec and Ontario and has won government orders on multiple occasions, indicating that it has long possessed the capability to expand in Canada.

More importantly, if Chinese companies are willing to invest and set up factories in Canada, this will not only help stabilize local supply chains and increase employment but also bring opportunities for green transformation to Canada.

Currently, there are rumors that even if the 100% tariff on electric vehicles cannot be completely eliminated, there is still hope that it will be reduced to a range of 30%-40% after negotiations.

Previously, Chinese Ambassador to Canada Wang Di stated in an interview with Canadian media, "China is an opportunity for Canada, not a threat. If both China and Canada adhere to the spirit of correct understanding, mutual respect, and seeking common ground while shelving differences, they can definitely achieve mutual success."

Canada-China Flights Expected to Resume, Accelerating Personnel Exchanges

The reduction of flights between Canada and China has been a major concern for overseas Chinese and travelers in recent years.

Before the pandemic, there were over 50 direct flights per week between the two countries, but currently, they have not even returned to half of the pre-pandemic level. In particular, flights from cities such as Vancouver, Montreal, and Calgary to China are characterized by high ticket prices and low frequency, causing great inconvenience to students, business people, and family reunions.

During this phone call, the Chinese side explicitly expressed its "hope to expand personnel exchanges and economic and trade interactions," which is seen as an important signal for the resumption of flights. Several airlines have also begun to re-evaluate their route restoration plans.

An increase in flights will not only facilitate exchanges between the two peoples but also drive the recovery of related industries such as tourism, education, and immigration, with significant economic implications.

Reference links:

1.https://www.thestar.com/politics/federal/carney-and-li-agree-to-regularize-communication-between-canada-and-china/article_42c58bb0-1802-517c-8c1c-c33e2ac82a87.html

2. Comprehensive reports from Chinese media platforms such as Xinhua News Agency and People's Daily Online