January 26th, 2026
- USCSSO @GWU
- 1 day ago
- 3 min read
Overview
This week, we discuss significant developments in China-Canada relations and analyze recent investigations into top Chinese generals.
Trade
Equal Footing: China and Canada Reach New Trade Agreement
By Newsletter Director Jason Holman
On Jan. 16 after a visit by Canadian PM Mark Carney to Beijing reached a new preliminary agreement to lower tariffs
Canadian PM Mark Carney meeting Xi Jinping in the Great Hall of the People, Beijing, on Jan. 16 . (via. The Guardian)
Strategic Agreement: On Jan. 16 2026 China and Canada concluded a preliminary trade agreement that would lower tariffs between the two countries. The agreement came after a state visit by Canadian PM Mark Carney to Beijing, the first visit by a Canadian PM since 2018. The agreement would have Canada lower its tariff on Chinese EVs to 6.1% with a quota of 49,000 EVs that would grow to 70,000 in 5 years. While China would cut duties on many Canadian agricultural goods. The largest being a reduction of tariffs on Canola Oil from 85% to 15% by March 1, which is vital as China accounts for 67.7% of Canada's Canola seed export.
Ottawa & Beijing: Since 2018 relations between the two governments have been strained . In 2018 the senior executive of Huawei was arrested in Vancouver on US fraud charges. Days later two Canadian citizens were arrested in China, which China claimed was unrelated but significantly harmed China-Canadian relations. Relations further became soured over the developing trade war, where Canada along with the EU and US raised tariffs on Chinese EVs to 100% in 2024. This resulted in China placing many of the reciprocal tariffs on Canadian agricultural goods, such as canola seeds and oil, that are now being reduced. Additionally, China suspended beef imports from Canada in 2021 over outbreaks of mad-cow disease in Canadian farms that the agreement plans to disperse.
Middle Powers: This shift in policy on China from Canada has come from uncertainty over the stability of Canada-US relations. This agreement also seeks to strengthen investment between the two countries. The Canadian Government has announced goals to increase exports to China by 50% by 2030. China has also allowed for visa-free travel for Canadian citizens to China. There is also potential that Chinese manufacturers in Canada could receive preferential market access in return for joint ventures and use of Canadian software. On Jan. 25 US President Donald Trump threatened punitive tariffs on Canada in response to the agreement.
Domestic
War on Corruption: Senior Military Commissioners Under Investigation
By Newsletter Director Jason Holman
On Jan. 24 China’s Defense Ministry announced that two top generals were under investigation, including the highest military commander under Xi Jinping.
General Zhang Youxia, senior of 2 vice-chairs of the Central Military Commission, now under investigation. (via. The Guardian)
Zhang & Liu: On Jan. 24 2026 the Chinese Defence Ministry announced that two members of China’s Central Military Commission (CMC) were under investigation, Zhang Youxia and Liu Zhenli. The CMC is the central committee that is in charge of China’s armed forces and is composed of 6 members and headed by Xi Jinping. The charges against Zhang and Liu were further revealed on Jan. 25 with statements from several sources such as PLA Daily charging the two with “serious betrayals of trust”, “damaging the Chairman Responsibility System”, and “serious violations of law and discipline”. Zhang was the highest military member below Xi and Liu was in charge of the Joint Staff Department. Both had been absent from a high-level party event in Dec. 2025 before this announcement.
Anti-Corruption Campaign: This move continues the anti-corruption drive that has been central to Xi’s time in office. Since 2012 Xi has removed 17 generals from the PLA. This investigation into Zhang and Liu is a continuation of moves in Oct. 2025 with the expulsion of He Weidong. The CMC which has 6 members, excluding Xi, now only has 1 member, Zhang Shengrin who replaced He in October as head of the CMC’s Commission for Discipline Inspection. It is unclear if Xi plans to fill the other 5 empty positions of the CMC before 2027 when the new Communist Party Central Committee will be selected which is in charge of selecting CMC members.
2027: The move to place Zhang and Liu under investigation has come as a shock to many outside reporters of the CCP. Zhang was seen as a longtime friend of Xi’s and one of Xi’s closest military allies. Zhang’s and Liu’s additional roles as China’s top commanders for practical operational tasks is important given the increased military operations in the Taiwan Strait. Some expect that the move, while creating uncertainty in the short term, will allow the Chinese military to become more effective and disciplined in the long term. There has also been speculation that the investigation came over fears of factionalism within the CCP.
Comments