The great reset with China

In mid-January, a trade agreement was signed between China and Canada. It was decided to lower tariffs on Chinese electric vehicles and Canadian food products. This took place during Canadian Prime Minister Mark Carney’s visit to Beijing, where he met with the leader of the PRC, Xi Jinping. It was the first visit of this kind since 2017. Former Canadian Prime Minister Justin Trudeau imposed a 100% tariff on Chinese electric cars in 2024. Carney assures that the new measures will benefit Canadians.

A similar event took place on January 29, when the Prime Minister of Great Britain, Keir Starmer, met with Xi Jinping in Beijing. The British side also expressed a desire for deeper cooperation and warming of relations (the previous visit of this kind took place in 2018). No new trade agreement was signed, but negotiations were conducted on tariff issues. China called for the creation of a ”non-discriminatory environment” for Chinese companies. The British side demanded a reduction of tariffs on Scotch whisky and cooperation in combating illegal migration.

These moves on the part of Western countries can safely be linked to the unpredictability of Donald Trump’s politics. In the case of Canada, an example of such activity can be the US president’s statements about annexing Canada as the 51st state. The United Kingdom, meanwhile, must reckon with 10% tariffs on all goods it exports to the States. Both countries also opposed Donald Trump’s claims regarding the annexation of Greenland by the USA.

It is a legitimate question whether we are dealing solely with individual state decisions or with an emerging new trend among the United States« previously close allies. Interestingly, Donald Trump’s reactions to the news of Canada and the United Kingdom deepening ties with China were varied. „That’s what he should be doing. It’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that” - Trump said to reporters about Canada’s actions. When asked about Starmer’s visit, he said that it was „very dangerous” for the UK to do business with China.

It remains to be seen if any other countries decide to re-establish closer connections to China. Donald Trump imposed a 10% tariff on Denmark, Norway, Sweden, Finland, France, the United Kingdom, the Netherlands and Germany. It was a response to the symbolic deployment of European soldiers to Greenland, to show these countries« opposition to such policies. It cannot be ruled out that some of these countries (e.g., Germany and France) may also turn to China with proposals for cooperation.