Name: Chinese car companies could set up Canadian manufacturing: Carney
Uploaded: 2026-01-19T05:08:39.641Z
Duration: 2 min 40 s
Description: Prime Minister Mark Carney says Chinese car companies have expressed interest in partnering with Canadian companies to make electric vehicles in Canada.

Prime Minister Mark Carney says Chinese car companies have expressed interest in partnering with Canadian companies to make electric vehicles in Canada.

Ottawa

Prime Minister Mark Carney has reached an agreement with China that involves lifting tariffs on a limited number of Chinese electric vehicles in exchange for tariff relief on Canadian agricultural products such as peas and canola. This move has raised concerns in Ontario's automotive sector about potential negative impacts on domestic manufacturing, while Saskatchewan farmers welcome the improved access to the Chinese market.

Carney indicated that Chinese car companies have shown interest in setting up manufacturing facilities in Canada, which could create jobs and establish a local supply chain. The Canadian government is expected to introduce a new auto policy that may include preferential treatment for foreign car makers who build vehicles in Canada, as well as potential tariffs on foreign-made vehicles without a Canadian manufacturing presence.

Chinese car companies could set up Canadian manufacturing: Carney

In Canada's auto capital there is anxiety over what Prime Minister Mark Carney's deal with China on electric vehicles could mean for Ontario's battered automotive sector. It just seems to be the start of the potential of an erosion of the auto industry in Canada. In exchange for tariff relief on Canadian farm products like peas and canola, Carney agreed to lift levies on a set number of Chinese EVs. Leading Chinese automakers like BYD are state-subsidized and those low-cost imports could blow a hole in domestic manufacturing, says Windsor's mayor. There has to be a guardrail that if we're going to allow the sale of 45,000 EV cars from China every year it has to come with some job guarantee at some point. Now a suggestion from Carney those jobs could be coming. He says Chinese car companies are signaling they could set up shop in Canada. I do know there's interest because we've had direct conversations directly from the Chinese companies. If it happens Canada could become the first country in North America to build an EV with Chinese knowledge. It's an opportunity for Ontario workers opportunity for Canada done in a controlled way. While there is concern in Ontario, in Saskatchewan canola farmers are celebrating. China is lifting tariffs that have suppressed canola prices. We're so used to having disappointment in this file that when you start seeing some progress I was ecstatic. Dominic Barton is Canada's former ambassador to China. He helped secure the release of Michael Kovrig and Michael Spavor detained by Beijing for nearly three years. He says it's worth talking to the Chinese especially if they're willing to put money into the auto sector. One it's going to create jobs for Canadians and have a supply chain in Canada that I think it's something we need to look at. China is by far the leader in EVs. Last week U.S. President Donald Trump said America doesn't need any Canadian made cars and while he said that before it's put renewed pressure on Carney to craft an auto policy to protect that critical sector. A senior government official tells CBC News one is coming in February and it's expected to include a made in Canada provision. And what would that look like JP? The official tells us the government will give preferential access to foreign car makers who manufacture vehicles in Canada. It's a protectionist policy that sounds similar to what Trump himself is pursuing stateside. While the details are still being sketched out it could include Canada slapping tariffs on foreign made vehicles if a car company has no manufacturing presence here at home. Ian? JP Tasker in Ottawa.

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