China’s Ambassador to Canada Wang Di has weighed in on the recent tariff deal between the two countries, amid criticism from North American politicians and domestic automakers.
Last week, following a state visit to Beijing, Prime Minister Mark Carney announced that Canada would allow the annual import of 49,000 electric vehicles at a reduced tariff of just 6.1% — in exchange for lower duties on Canadian agricultural products.
China imposed agricultural tariffs last year in retaliation for Canadian levies on imported EVs. The country imposed a 100% duty in 2024, similar to the US.
Speaking with The Canadian Press, Wang said the agreement will create more jobs in the automotive industry and help consumers buy more affordable vehicles.
His comments appeared to respond indirectly to critics who have argued that the deal could put Canada’s auto industry at risk.
Among those critics is Doug Ford, the Premier of Ontario, where much of the country’s automotive sector is based.
“All these projects will be beneficial to the development of the Canadian EV industry, and will be helpful for job growth in Canada, and will help Canadian consumers to be able to buy higher quality and more affordable cars,” Wang stated.
According to Wang, Ontario automakers need not be concerned, as Canada and China are aiming for investments that will strengthen the sector.
“The character of China-Canada practical co-operation is complementarity and mutual benefit,” the Ambassador said, adding that “China encourages and supports Chinese companies to make investments and start up companies here in Canada, on the basis of the market rules.”
He warned that “at the same time, we hope that the Canadian side will provide a fair, non-discriminatory and predictable business environment for the Chinese companies that come here.”
Manufacturing Chinese EVs
The Canadian government does not view the deal as an economic threat, seeing it instead as part of a broader strategy to eventually produce Chinese EVs in Canada.
Upon announcing the deal a week ago, Carney said “it is expected that within three years, this agreement will drive considerable new Chinese joint-venture investment in Canada with trusted partners to protect and create new auto manufacturing careers for Canadian workers, and ensure a robust build-out of Canada’s EV supply chain.”
Wang told The Canadian Press that Beijing wants to see if companies take advantage of those opportunities, which for him are a “win-win” situation.
“If Chinese companies will come to Canada to work with Canadian partners for investment, for opening factories or for joint ventures, all of these projects will be win-win,” the Ambassador said.
According to him, “unlike some other countries, China will not only take into consideration its own selfish interests.”
We don’t want ‘only we win and others lose,'” Wang stated, adding that “only win-win co-operation can last.”
Canada EV Scenario
Canada has a nationwide target for all new light‑duty vehicles sold to be zero‑emission by 2035, with interim targets set along the way — roughly 20% by 2026, 60% by 2030, and 100% by 2035.
However, late last year, the government announced a one‑year pause on the mandate while it reviews the policy framework.
One of the reasons for the review is the increase of US tariffs on Canadian imports, which affects mostly the auto sector.
Several US automakers rely on production in Canada, like Detroit automakers General Motors and Ford.
GM currently builds 30% of its vehicles sold in the US in Canada and Mexico, while Ford’s sources 21% from there.
Canadian-manufactured vehicles that don’t qualify for duty-free trade under USMCA had their tariff raised from 25% to 35%, on top of an already-existing 15%.
According to US Commerce Secretary Howard Lutnick, Canada’s 50% rate is “the second-best deal in the world,” just after Mexico.
The US Secretary commented on the deal, saying it represents a significant position ahead of the upcoming USMCA trade renegotiations.
“When USMCA gets renegotiated… do you think the President of the United States is going to say, you should keep having the second-best deal in the world?” Lutnick said, ironically adding, “I mean, you guys are such great friends.”
Other Reactions
Besides the attack on the auto industry, Ontario’s Premier Doug Ford had warned that the deal could jeopardize Canada’s trade relationship with the United States, its largest export market for vehicles.
This Monday, he also claimed that China would use the vehicles to spy on Canadians.
“When you get on your cellphone, it’s the Chinese that are going to be listening to your … telephone conversation,” he said.
“I find it ironic that the Prime Minister is using a burner phone and all his staff over in China, but we are making a deal — it’s Huawei 2.0 – to come back into Canada and we get nothing but potential job losses in our factories right across the board,” he said.
The concerns were reiterated by Margaret McCuaig-Johnston of the China Strategic Risks Institute, who said that there’s a threat of surveillance stemming from software in Chinese EVs that links to mobile networks and often the driver’s personal phone.
Last year, a similar apprehension was shown by the UK Government, as the Ministry of Defence instructed staff not to discuss secret information in Chinese-made vehicles amid “China spying fears.”
What’s to Come
On the other hand, during a panel at the Institute for Peace and Diplomacy, the head of the Canada-China Energy and Environment Forum Wenran Jiang pointed out that Canadian auto parts company Magna International is working with a Chinese automaker to build cars in Austria.
According to him, the partnership combines Chinese expertise with local workers.
The brand referred to is XPeng, which began producing electric vehicles in Europe last year as a way to bypass EU tariffs on imported Chinese EVs.
“If they can do that, we can do it certainly here in Ontario,” he said, arguing that this is how Canada could avoid regional splits over engagement with China.
China’s largest electric vehicle makers have yet to reveal their plans for Canada, after a newly opened path into the North American market.
Automakers already certified in North America are best positioned to capitalize on the agreement, which includes Geely Holdings’ controlled Volvo, Lotus and Polestar.
Even Tesla, based in North America, could benefit from the deal. While it usually imports from the US, the company has briefly imported from China’s Giga Shanghai in mid-2023, as reported by Reuters.
Tesla Canada also began sourcing Model Y SUVs from the company’s European factory last year to bypass tariffs.
