China seeks improved ties with Canada amid rising trade tensions
China called on Friday for steps to improve bilateral ties with Canada, saying there were no deep-seated conflicts of interest, following a spike in trade tensions with many of Beijing's Western trade partners this year.
China is willing to work with Canada to put ties on a healthy and stable path and find solutions to address each other's concerns through enhanced dialogue, Premier Li Qiang told Canadian Prime Minister Mark Carney in a phone call on Friday, according to the state-run Xinhua news agency.
"There is no fundamental conflict of interests between the two countries," Li said.
Li's talks with Carney followed a highly anticipated phone call between U.S. President Donald Trump and Chinese President Xi Jinping on Thursday, which Trump said led to "a very positive conclusion" and offered hope the trade war between the world's two largest economies might start to de-escalate.
As the effects of trade frictions start to make their way into the already soft Chinese economy, Beijing has stepped up engagement with other countries to alleviate friction despite earlier retaliation.
In March, Beijing announced tariffs on over $2.6 billion worth of Canadian agricultural and food products in retaliation for Ottawa's levies on Chinese electric vehicles and steel and aluminium products introduced in October.
Beijing has also launched an anti-dumping investigation into Canadian canola that is set to conclude in September.
Canola, also known as rapeseed, was one of Canada's top exports to China, the world's No. 1 agricultural importer, prior to Beijing's investigation.
"The two governments should listen to and respond to the people's calls and do more to deepen the friendly cooperation and enhance mutual understanding and trust," Li told Carney.
China is Canada's second-largest trading partner, trailing far behind the United States. Canada exported $47 billion worth of goods to the world's second-largest economy in 2024, according to Chinese customs data.
Beijing is also willing to work with Canada to safeguard multilateralism and free trade, Li added.
Beijing's olive branch to Ottawa also comes ahead of a Group of Seven leaders summit in Canada later this month.
At the G7 summit in Italy last year, G7 leaders were critical of China, saying they would take steps to shield their economies from China's "unfair" practices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Nikkei Asia
2 hours ago
- Nikkei Asia
US wants Asian allies to spend 5% of GDP on defense, Pentagon says
The USS George Washington is seen during a trilateral exercise between the U.S., Japan and South Korea in the East China Sea in November 2024. © Reuters KEN MORIYASU and RINTARO TOBITA WASHINGTON -- America's allies in Asia should follow Europe and spend 5% of gross domestic product on defense, a Pentagon spokesperson said Friday. This marks the first time in President Donald Trump's second term that the administration has laid out a regionwide target for the Asia-Pacific region.
Japan Times
4 hours ago
- Japan Times
U.S. may target Samsung, Hynix and TSMC operations in China
The U.S. Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive U.S. goods and technology at their plants in China, according to people familiar with the matter. The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries. A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed. "There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations." Shares of U.S. chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%. A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either. In October 2022, after the United States placed sweeping restrictions on U.S. chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods. In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade. A company with VEU status is able to receive designated goods from a U.S. company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive U.S.-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it. The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements. "Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.' Industry sources said that if it became more difficult for U.S. semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors. "It's a gift," one said.
Japan Times
5 hours ago
- Japan Times
Japan scraps ‘two-plus-two' meeting with U.S. over defense spending demand, report says
Japan has canceled a high-level meeting with the U.S. set for July following a demand that Tokyo spend even more on defense, according to a media report. Tokyo abruptly scrapped annual 'two-plus-two' security talks involving the allies' top diplomats and defense chiefs less than two weeks before the meeting after the U.S. asked Japan to hike its defense budget to 3.5% of gross domestic product, the Financial Times reported Friday, citing unidentified sources. Defense Minister Gen Nakatani and Foreign Minister Takeshi Iwaya had been scheduled to meet U.S. Secretary of State Marco Rubio and Defense Secretary Pete Hegseth in Washington on July 1 for the talks. Asked about the report at a news conference Friday, U.S. State Department spokesperson Tammy Bruce said the U.S. had 'no comment on that at this point.' The Pentagon did not immediately respond to requests for comment. The report said that the U.S. had initially asked Japan to spend 3% of GDP on defense, though Pentagon officials told The Japan Times earlier that it had set a 'global standard' for Tokyo and other U.S. allies to spend 5% of GDP on defense, in the first official confirmation that Washington is asking Tokyo to pump up its defense budget even further. The reason for the discrepancy was not immediately clear, though the Pentagon has been gripped by upheaval, including high-level dismissals and scandals in recent months under Hegseth. The Financial Times said the new, higher demand was made in recent weeks by Elbridge Colby, the Defense Department's No. 3 official, sparking anger in Tokyo. Colby said during his confirmation hearing in March that Japan 'should be spending at least 3% of GDP on defense as soon as possible,' citing the growing military threat from China and North Korea. Ostensibly pacifist Japan has in recent years undertaken a dramatic transformation of its security policy, including a five-year plan to ramp up defense spending to 2% of GDP by 2027. But pouring even more cash into defense coffers would come with significant political costs as the government focuses on domestic economic priorities and amid growing uncertainty over how to secure funds. Japan is currently getting far less bang for its buck as inflation and the yen's diminishing value erode its plans for the country's largest military buildup since World War II. The Financial Times report, citing a senior Japanese official, said the decision to cancel the meeting was also related to the July 20 Upper House election in which the ruling Liberal Democratic Party is expected to lose seats. In a statement given to The Japan Times on Friday, Chief Pentagon Spokesman Sean Parnell pointed to a majority of NATO nations that have signed on to U.S. requests to boost defense spending to the 5% level, saying that 'European allies are now setting the global standard for our alliances, especially in Asia, which is 5% of GDP spending on defense.' Asked whether Parnell's remarks apply specifically to Japan, a U.S. defense official said it 'is inclusive for all of our allies across the Asia-Pacific region, including Japan.' Nakatani said in April that defense spending was within striking distance of the 2% target, at 1.8% of GDP. A Defense Ministry panel of experts, meanwhile, is reportedly set to recommend that the government consider hiking defense spending beyond 2%, and Prime Minister Shigeru Ishiba has said that future budgets "may top 2%, if needed,' depending on the security environment. Ishiba and senior Japanese officials, however, have said that Japan will not be told how much to spend, reiterating that what is most important is the substance of strengthened defense capabilities — not arbitrary figures. The issue of defense spending among U.S. allies and partners will be at the top of the agenda at next week's NATO leaders' summit in The Hague, which Ishiba is also set to attend. Tensions over security issues and trade have grown since Trump took office, with the U.S. president railing against his county's alliance with Japan, calling the partnership — which turns 65 this year — unfair and 'one-sided,' while threatening Tokyo and other allies and partners with onerous tariffs on key sectors such as automobiles and steel.
