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Canada's Carney to raise EV manufacturing, Chinese investment in talks with Xi next week

person Sarah Mitchell

calendar_today November 12, 2026 at 5:38 PM

schedule 3 min read

Orange BYD Sealion 05 SUV with a black roof, shown from the front three-quarter angle at the 2026 Beijing auto show.

Summary

Canadian Prime Minister Mark Carney will discuss EV manufacturing and Chinese investment in Canada's auto sector with President Xi Jinping during his China visit, with a meeting set for November 17. Carney downplayed near-term prospects for Chinese car production in Canada, as Ottawa seeks joint-venture investment to support its struggling, tariff-pressured auto industry.

Carney plans to meet with China's leader on November 17 but downplayed expectations of Chinese cars entering production in Canada soon.

Canada is seeking Chinese investment to bolster domestic auto manufacturing.

Canadian Prime Minister Mark Carney said he will discuss electric vehicle (EV) manufacturing with Chinese president Xi Jinping during a visit to China next week, but downplayed expectations of Chinese cars entering production in Canada soon.

Speaking at the European Political Community summit in Dublin on Thursday, Carney said the scale of Chinese investment in Canada's auto industry depends on several factors and will be among the topics discussed, Bloomberg reported on November 12.

Carney plans to meet with Xi on November 17 after arriving in Shenzhen for the Asia-Pacific Economic Cooperation (APEC) leaders' summit. He previously said they would discuss ways to expand bilateral trade ties.

He also said discussions about Chinese EVs are relevant to Canada's ongoing talks with the US, without elaborating, according to Bloomberg.

Canada is seeking new investment for its struggling auto industry. The sector has long been geared toward exports to the US and now faces pressure from tariffs imposed by US president Donald Trump.

During Carney's visit to Beijing in January, the countries reached a trade agreement under which China lowered tariffs on some Canadian agricultural products in exchange for Canada establishing a low-tariff import quota for China-made EVs.

The agreement allows up to 49,000 China-made EVs to enter Canada over 12 months at a tariff rate of 6.1%. Vehicles exceeding the quota remain subject to an additional 100% surtax.

The agreement also set a goal of attracting substantial new Chinese joint-venture investment in Canadian auto manufacturing within 3 years. The arrangement drew criticism from US administration officials, including Trump himself.

Canadian Industry Minister Mélanie Joly hopes such joint ventures will support domestic parts manufacturing, jobs and technology development, but none have been announced so far, according to Bloomberg.

Stellantis NV previously held discussions with Joly's office about producing EVs using Chinese technology at an idled plant near Toronto, but the talks have stalled, the report said.

The Canadian government ruled out a model in which most parts would be manufactured in China and only assembled in Canada. Stellantis subsequently announced plans to sell the plant to Canadian armored vehicle manufacturer Roshel.

Chinese automakers continue to explore local manufacturing opportunities in Canada. Chery's (HKEX: 9973) executive vice president Zhang Guibing told Bloomberg in October that the company was evaluating options including using spare capacity at existing plants and building factories with partners.

BYD's (HKEX: 1211) executive vice president Stella Li also told Bloomberg in March that the company was studying the possibility of establishing manufacturing facilities in Canada. No decision had been made at the time, and BYD preferred to independently own and operate a plant.

Meanwhile, Geely Auto (HKEX: 0175) announced in October that its namesake brand was entering Canada, with its first models planned for 2027, underscoring Chinese automakers' parallel efforts to establish local sales operations.