Canada, caught between U.S. President Trump’s tariffs, has strengthened its ties with China. Ottawa, a long-time U.S. ally, recently signed a deal to liberalize trade in agriculture and electric vehicles with China.
“Tariffs and trade war have no winners,” He said, highlighting the benefits of “free trade and economic globalization,” and noted the global trade system faces significant challenges.
He urged nations not to abandon globalization and trade liberalization, which have aided “many countries, including China” in achieving rapid development. While acknowledging globalization’s imperfections, he warned against nations retreating into “self-imposed isolation.”
Addressing criticisms of China’s economic model, which generated a $1.2 trillion trade surplus in 2025, He emphasized that China aims to be the “world’s market,” not just an exporter. He pointed out, however, that “when China wants to buy, other countries don’t want to sell,” referencing U.S. restrictions on microchip sales to China.
He said Beijing prioritizes boosting domestic demand, despite household consumption as a share of GDP being under 40 percent last year, compared to a global average of over 60 percent, according to World Bank data.
Economists suggest raising household income could help absorb China’s manufacturing surplus, reduce exports, and increase demand for foreign goods such as European luxury products.
“We encourage global businesses to seize the opportunities of our growing domestic demand, offer better products and services, and explore China’s consumer market further,” He stated. “China will open its door wider to the world.”
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