Canada opens door to more Chinese investment in energy, including oil sands
Ottawa signed a trade road map with Beijing that welcomes Chinese investment in energy, agriculture and consumer goods, and a memorandum on energy co-operation that includes oil and LNG.
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By Torontoer Staff
Canada and China signed a series of agreements in Beijing that explicitly welcome Chinese investment in Canadian energy, including the oil sands. The federal government framed the deals as part of a wider economic and trade co-operation road map aimed at boosting exports and foreign investment.
Prime Minister Mark Carney met Chinese Premier Li Qiang and other senior officials as Ottawa and Beijing signed a memorandum of understanding on energy co-operation, alongside multiple memorandums renewing or expanding co-operation on agriculture, construction, tourism and public safety.
What the energy memorandum covers
The MOU signed in Beijing frames energy co-operation around energy security and the transition to lower-carbon systems, while acknowledging that conventional fuels remain part of the near-term mix. It explicitly mentions co-operation on oil and gas development, and trade in crude oil, liquefied natural gas and liquefied petroleum gas.
The agreement also signals interest in Canadian uranium sales and includes language describing Canada as an "important potential partner in responsibly produced and reliable global oil, LNG and LPG supply." The Canadian signatory was Energy and Natural Resources Minister Tim Hodgson.
Today, China is a major investor in the oil sands, both as an operator and as a passive investor. They desire to have more of our energy. As long as theyre a responsible producer, were open to more investments.
Tim Hodgson, Minister of Energy and Natural Resources
Context and commercial ties
Canada has already increased petroleum exports to China. Chinese companies received shipments of Canadian liquefied natural gas from the countrys first export facility in 2025, and Chinese buyers have been purchasing more Canadian oil over the past year. Ottawa says it is positioning Canada as a reliable, lower-carbon supplier in global markets.
The memorandum builds on earlier arrangements and on recent commercial deals. Mr. Carneys delegation met with six major companies in Beijing, including Industrial and Commercial Bank of China, China National Petroleum Corporation, Alibaba Group and Contemporary Amperex Technology, which makes lithium-ion batteries.
Political background and past restrictions
Canada restricted state-owned foreign investment in the oil sands in 2012 under a previous government. The current federal government has since signalled a different stance, saying it will welcome Chinese investment without the ownership caveats that applied previously.
Trade relations have been strained in recent years, including a 2024 Canadian tariff on Chinese electric vehicles that prompted retaliatory levies from China on agricultural exports such as canola and seafood. Beijing has linked any removal of its tariffs to Canada rescinding the EV duty.
What we heard loud and clear is China is looking for reliable trading partners, trading partners that dont use energy for coercion.
Tim Hodgson, Minister of Energy and Natural Resources
Agreements signed and sectors involved
- Memorandum of understanding on strengthening energy co-operation, covering oil, LNG, LPG and uranium trade
- MOU on agricultural co-operation, including plant and animal health and food safety
- MOU on wood construction and trade
- Renewal of a co-operation agreement on combatting crime
- Letter of intent on tourism and a trade road map covering energy, agriculture and consumer goods
Chinese leaders described the visit as a turning point in relations. Premier Li Qiang called it a "new starting point" for bilateral ties, and Chinas Foreign Minister Wang Yi said the meeting marked progress after years of strained relations.
It sets the stage for these important discussions on a wide range of issues where we can be strategic partners, from energy to agriculture, to people-to-people ties.
Prime Minister Mark Carney
What comes next
Mr. Carney was scheduled to meet President Xi Jinping before departing China. Ottawa will now need to balance attracting investment and securing export markets with domestic political and environmental concerns about foreign ownership and the role of fossil fuels in the energy transition.
Ministers say Canada will continue pursuing net-zero targets while expanding trade in conventional energy, and that future deals will be guided by market principles and an emphasis on responsible production.
The agreements signed in Beijing represent a reset in practical co-operation, but many of the trade and diplomatic issues between Ottawa and Beijing will require follow-up negotiations and implementation over months and years.
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