China offers Canada joint production of electric vehicles

China's ambassador to Canada, Wang Di, has stated Beijing's readiness to cooperate with Canadian auto workers to create new jobs and produce more affordable vehicles. This announcement came amid criticism of a recently signed agreement between the two countries.

"Only mutually beneficial cooperation can be lasting," the diplomat noted in a conversation with journalists on Wednesday.

Agreement Details

Last week, Prime Minister Mark Carney and Chinese President Xi Jinping signed an agreement allowing Chinese electric vehicles into the Canadian market at a tariff rate of 6.1 percent. The document sets an annual import quota of up to 49,000 vehicles, with half of them required to have an import value below $35,000 by 2030.

Wang emphasized through a translator that such projects would benefit the development of Canada's electric vehicle industry, stimulate job growth, and allow consumers to purchase higher-quality and more affordable cars.

Background of the Trade Conflict

In 2024, Canada, along with the United States, imposed a 100-percent tariff on Chinese electric vehicles, accusing Beijing of using unfair subsidies and dumping on the North American market. In response, China imposed tariffs on Canadian agricultural imports. The new agreement involves easing Chinese agricultural tariffs in exchange for allowing electric vehicles in.

Criticism from Provinces and Unions

Ontario Premier Doug Ford characterized the agreement as an "unbalanced deal" that risks flooding the market with cheap electric vehicles without guarantees of Chinese investment and with the threat of limiting Canadian automakers' access to the American market.

Unifor President Lana Payne called the agreement a "self-inflicted wound" and warned about China's rapid capture of market share, as has happened in other countries.

Chinese Position

Ambassador Wang tried to reassure Ontario auto workers by stating that practical cooperation between the countries is complementary and mutually beneficial in nature. He noted that China encourages its companies to invest in Canada based on market rules, hoping for a fair and predictable business environment.

"Unlike some other countries, China will take into account not only its selfish interests. We don't want 'only we win and others lose,'" the diplomat stated.

Manufacturing Prospects

Canadian visa centers in Russia have stopped ...

The number of people wanting to join the Cana...

Trump stripped Canada of its seat on the pres...

Canadians rallied around Prime Minister Carne...

Arctic cold has covered Canada with temperatu...

Trump lashed out at Carney after his speech i...

Canadian companies plan to raise salaries by ...

Gold breaks records and continues to rise des...

Prime Minister Carney concludes a nine-day wo...

Cenovus Energy is preparing to sell assets in...

Carney in Davos declared the breakdown of the...

German submarine manufacturer prepares multi-...

A senior government source reported that Ottawa does not view the deal as an economic threat, as it fits into a strategy of potentially manufacturing Chinese electric vehicles directly in Canada.

Wenran Jiang, head of the Canada-China Energy and Environment Forum, cited as an example the Canadian auto parts giant Magna International, which has an agreement with a Chinese automaker to produce cars in Austria. In his opinion, a similar model is quite applicable in Ontario.

Analysts' Concerns

Critics of China's industrial policy warn that government subsidies have created a surplus of cheap cars capable of artificially lowering prices and contributing to deindustrialization. Margaret McCuaig-Johnston from the China Strategic Risks Institute also expressed concern about the threat of surveillance through software in Chinese electric vehicles that connects to mobile networks and drivers' phones.