EDITOR'S ANALYSISEconomy|PoliticsCanada’s Mark Carney seeks reset on pivotal trip to ChinaCanadian leader’s visit comes after nearly a decade of strained ties between Ottawa and Beijing.

Canadian Prime Minister Mark Carney has arrived in China, marking the first visit by a Canadian leader to the country since 2017. Carney is scheduled to meet with Chinese President Xi Jinping and Premier Li Qiang.

Relations between Canada and China deteriorated significantly after the arrest of a Chinese telecommunications executive at the Vancouver International Airport in December 2018. This action, requested by the United States, led to the detention of two Canadian citizens by China. Subsequent trade tensions saw Canada impose tariffs on Chinese electric vehicles, which prompted reciprocal tariffs from China on Canadian agricultural products, including canola.

Despite ongoing challenges, Carney's visit aims to recalibrate and improve bilateral relations. The Prime Minister is focused on diversifying Canada’s economy and reducing its heavy reliance on the United States, which accounts for nearly 80% of Canadian exports.

Carney's visit to China is part of a broader strategy to enhance Canada's global trade relationships. The Prime Minister has been actively seeking new markets and investment opportunities, having already engaged with the European Union and Gulf countries. His goal is to double Canada's non-US trade within the next decade.

In October, Carney met with Xi Jinping during the Asia-Pacific Economic Cooperation Summit in South Korea. The current visit to China is expected to focus on specific economic agreements, particularly in the energy and agricultural sectors.

The visit coincides with a review of the United States-Mexico-Canada Agreement (USMCA), which allows Canadian and Mexican goods to enter the US tariff-free. Approximately 86% of US imports from Canada and Mexico are compliant under this agreement. However, the agreement's future remains uncertain, with potential for mandatory annual reviews until 2036 if no new terms are agreed upon.

Should the USMCA not be extended or modified, Canada may face increased trade policy uncertainty and could need to explore bilateral agreements to maintain market access.

For China, Carney's visit represents an opportunity to secure new export markets and address trade restrictions, such as the electric vehicle tariffs. Beijing seeks to position this visit as a correction of past policies and hopes to influence Canada on sensitive geopolitical issues.

Recently, two Canadian MPs concluded a visit to Taiwan, a region claimed by China, ahead of schedule, underscoring the complexities of Canada's foreign policy decisions in relation to China.

Based on reporting by Al Jazeera.