Carney and Li Qiang Agree to Renew Canada-China Dialogue Amid Trade Tensions and Fentanyl Crisis

Ottawa/Beijing, June 7, 2025 – In a major development for Canada-China relations, Prime Minister Mark Carney and Chinese Premier Li Qiang have agreed to “regularize channels of communication” between the two nations. The agreement signals a thaw in diplomatic ties that have been strained since 2018 and aims to facilitate cooperation on critical issues, including trade and the opioid epidemic.

During a high-level phone conversation, both leaders stressed the need for consistent diplomatic engagement to resolve mutual concerns. Carney emphasized that restoring dialogue is essential to de-escalate economic frictions, particularly Chinese tariffs on Canadian agricultural exports such as canola, peas, and seafood imposed in response to Canadian duties on Chinese electric vehicles, steel, and aluminum.

Both sides also committed to tackling the fentanyl crisis through bilateral cooperation, acknowledging the global impact of the illegal opioid trade and the need for joint enforcement measures.

This diplomatic reset comes after a turbulent period marked by the 2018 arrest of Huawei CFO Meng Wanzhou in Vancouver, which led to China’s retaliatory detention of Canadians Michael Kovrig and Michael Spavor. The aftermath saw multiple clashes over trade, human rights, and alleged election interference.

Premier Li admitted that ties had suffered “unnecessary disturbances” and expressed a desire to rebuild relations based on multilateralism and stable economic cooperation.

The call is part of PM Carney’s broader strategy to reestablish Canada’s global influence. His recent outreach includes inviting Indian Prime Minister Narendra Modi to the G7 Summit in Alberta despite controversy over India’s alleged involvement in the killing of Sikh activist Hardeep Singh Nijjar and negotiating with U.S. President Donald Trump to ease tariffs imposed during the ongoing trade dispute.

With tensions cooling and diplomatic backchannels re-opening, Carney’s administration appears poised to guide Canada toward a renewed era of global engagement.