Ambassador Warns Canada About Using China as ‘Bargaining Chip’

China’s ambassador warned the Canadian government against using it as a “bargaining chip” in trade negotiations with the U.S. but said it’s ready to pursue a bilateral free trade agreement if Canada removes barriers to Chinese investment.

Wang Di, who became Beijing’s representative in Ottawa last year, said China firmly respects Canada’s sovereignty and territorial integrity. U.S. President Donald Trump has repeatedly said the northern nation should be the 51st state.

“China is always willing to work together with the Canadian side by following the principle of mutual respect, seeking common ground while reserving differences,” Wang said through an interpreter on March 25. “But China also opposes any country using China as a bargaining chip when it deals with other countries.”

Canada began exploratory discussions on a free trade agreement with China — its second-largest trading partner — in 2017, but they didn’t progress. Diplomatic relations between the two countries went cold in 2018 when Canadian authorities arrested Huawei Technologies Co. executive Meng Wanzhou on a U.S. extradition warrant at Vancouver’s main airport. China imprisoned two Canadians in apparent retaliation, and though the dispute was resolved in 2021, relations remain strained.

China has criticized a clause in the U.S.-Mexico-Canada-Agreement signed during Trump’s first term that requires members to notify each other if they enter into trade talks with a “nonmarket” economy. Recently, Canada has adopted a more hawkish view on investment and trade with China — announcing in August that it would essentially match the Biden administration’s higher tariffs on Chinese electric vehicles, aluminum and steel.

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Canada’s tariffs prompted China to enact retaliatory measures against Canadian canola, pork and seafood this month, causing major economic impacts in western Canada.

Canada has also curbed Chinese investment in critical minerals projects, banned Huawei from fifth-generation wireless networks and ordered ByteDance, the parent of TikTok, to close its Canadian subsidiary.

Canada’s trade actions against China haven’t inured it from U.S. trade aggression. The Trump administration is imposing 25% tariffs on a broad range of Canadian goods and threatening more in the coming days.

Wang said China and Canada have a good foundation for talks on a trade deal from the 2017 discussions. “But of course, to reach such an agreement, both sides need to work in the same direction toward the same goal,” he said, speaking inside the ornate Chinese embassy in Ottawa.

At the same time, Canada is increasing its capacity to sell energy to China. The Trans Mountain pipeline expansion allows greater oil exports to Asia, and the LNG Canada project in British Columbia is set to open soon, enabling liquefied natural gas shipments to China.

China is interested in buying more oil and gas from Canada as long as it can offer good quality at a good price, Wang said. Canadian energy CEOs have visited the embassy to tell him they hope there will be more energy cooperation between the two countries, he said.

“But my answer to them is that you should not be working on me. You should be working on the Canadian government.”

‘Groundless Accusations’

Talks on a free trade deal between Canada and China are unlikely as relations remain frosty. Foreign Minister Melanie Joly said last week that China had executed four dual Canadian-Chinese citizens over drug crimes.

Wang said China’s actions were not driven by the individuals’ nationality. “As long as you have committed a crime in China, you will be treated in an equal way by the Chinese law,” he said.

He also dismissed claims by Canadian security officials this week that China, as well as other countries including India and Russia, may try to interfere in the federal election underway in Canada. These are “completely unjustified, groundless accusations,” Wang said.

Wang’s mission in Canada has been to find “win-wins” for both countries, and he’s seen progress — Joly and other officials from Global Affairs Canada have spoken with their Chinese counterparts multiple times, he pointed out.

“When I was having conversations with Canadian friends from all walks of life, all sectors here in Canada, I heard a strong voice that China and Canada should strengthen cooperation,” he said. “But unfortunately, at the same time, oftentimes we see some disrespect and smearing and attacking of China’s core interests.”