"Unless this trade is tightly constrained, it’s likely to undermine Canada’s industrial base."

"If we take a wrong turn, an entire industrial ecosystem could be hollowed out or captured, leading to a dependency that erodes economic security, sovereignty, and democratic values."

Deeper economic entanglement with China is not a long-term route to achieving any of those goals. It's a dead end." 

"The fundamental problem is that the Chinese Communist Party has an agenda that is hostile to Western democracies because it seeks to weaken our governance and our societies."

"Tilting toward China is a risky bet that is likely to carry more negative costs for Canada than the positive benefits that it could potentially bring."

Michael Kovrig, geopolitical adviser, former diplomat 

 

"It's a massive risk."

"Canada's auto industry depends on our integration with North America and the U.S. specifically. That's been the foundation of the sector, going all the way back to the auto pact."

"An estimated hourly wage at a Chinese [plant] is between U.S. $2 and $4 an hour. Compare that to a unionized vehicle production plant in Canada, where your average wage is about $45 an hour, and that also includes pensions and benefits and a whole range of other advantages." 

Brian Kingston, president, CEO Canadian Vehicle Manufacturers' Association 

 

"We should welcome Chinese car manufacturers but set the rules similarly to what GM Canada had to do when it went to Shanghai in 2009."

"We should say, you are welcome to come to Canada, but you will have, after three years, to have about 30 percent of Canadian content, and after ten years, it has to be 100 percent content."

Guy Saint-Jacques former Canadian ambassador to China 

Models pose near the BYD Seal 06 Dmi, unveiled during the Auto China 2024 show in Beijing, on April 25, 2024. China's largest EV maker has been expanding rapidly into overseas markets and could reach Canadian shores shortly following Ottawa's recent deal with Beijing. (Ng Han Guan/The Associated Press)

Second-guessing Prime Minister Mark Carney's triumphant visit to Beijing in January when he came back home to Canada with a prize; Beijing's agreement to lower tariffs on Canadian canola and pork. That didn't come out of the goodness of China's trading-heart, but it mightily pleased the Canadian agrifood industry after a trade spat that close to destroyed their always-dependable Chinese market. Canola, seafood and pork are important comestibles for the Chinese, but they are products considered in trade talk to be fungible; they can be acquired elsewhere. In return, the negotiators in Beijing smiled broadly when Mr. Carney agreed to drop the 100% tariff Ottawa levied on Chinese electric vehicles and to allow the entry under a favourable tariff rate, an initial 49,000 of the vehicles for the Canadian market.

 

The Canadian auto industry was anything but pleased. Chinese electric vehicles are priced very reasonably in comparison to their counterparts produced in North America. The Canadian auto industry has gone through an agonizing few years thanks to the Trump administration's decision to punish its neighbour for taking the U.S. for a trade ride for far too long, according to their logic. The heavily intertwined industry where parts go back and forth between Canada and the U.S. in production of vehicles had suited both countries very well in the past, where the new tariffs have left Canada's auto industry on its knees.

 

Carney loosens Chinese EV tariffs

Mark Carney smooth-talked the situation as an opportunity for Canadians to consider the purchase of a less expensive option where the market of such vehicles struggle with soaring prices. In five years, he said with confidence, over 50 percent of vehicles in North America will be available at an import price of less than $35,000. More affordable options at a potential cost to tens of thousands of auto industry jobs in Canada. "It's clear that this will be a delicate and sometimes difficult relationship to manage with risks and opportunities that must be carefully weighed, as we heard from the earlier witnesses today", noted director of policy and strategy at Clean Energy Canada, acknowledging the risks associated with Chinese companies accessing the Canadian auto market.

 

Michael Kovrig, whose experience with China was rather less than idyllic, when he was taken into custody while in China, accused of a conspiracy against China, and was imprisoned in less than stellar conditions, with 'soft' torture for almost three years for espionage, as was Michael Spavor, during a different, diplomatic drama when China was polishing up its hostage-diplomacy credentials, warns against any Canadian involvement with Chinese trade.  

 

He addressed the issue of harmful environmental practices and abuses of human rights well known to exist in the supply chains of Chinese production, inclusive of Chinese EV companies. Allegations of using forced labour in the construction of vehicles by BYD, include its plants located in Brazil and Hungary. The U.S.-based non-profit China Labor Watch recently reported evidence of brutal labour conditions for Chinese migrant workers at its facility in Hungary. BYD was also listed by Brazil on its registry of employers subjecting workers to slave labour conditions.

 

Former senior bureaucrat Margaret McCuaig-Johnston last month during testimony before a House of Commons committee cited a Human Rights Watch report that aluminum used in dozens of auto parts in Chinese EVs is likely to be produced by Uyghur forced labour. China-based Zhejiang Leapmotor Technology Co. discussed the potential with Stellantis of building Chinese EVs at their idled Brampton, Ontario plant. The plan involving "knock down" kits assembled in Canada, parts produced and shipped from China. A plan that would wholly diminish Canadian auto parts' and workers' importance in total auto production.

 

While the prime minister claimed Canadian legislation is designed to force companies to report on their supply chains, recognize forced labour elements and keep them out of the Canadian supply chain, critics point out that the Canada Border Services Agency since 2021 halted a mere two shipments containing forced labour, both from China. "The legislation is world class; the enforcement of the legislation is possibly less than world class", former Liberal MP John McKay stated. 

 

A BYD vehicle is assembled on the production line of the company's factory in Camacari, Brazil, on Oct. 9, 2025. (Joa Souza/Reuters)

"I think there are a number of concerns when it comes to this expansion of Chinese companies and their presence in the Canadian market."

"And human rights is one element of it, but economic security and national security concerns must also be considered."

Vina Nadjibulla, vice-president of research and strategy, Asia Pacific Foundation of Canada