Opening the Door for Chinese Automakers? Kanee Still Building Barriers, Imposing Strict Conditions on China in Advance

Recently, Canada's Minister of Industry revealed that he visited China last week and held meetings with executives from four Chinese automakers. These four companies have now begun exploring how to utilize Canada-based import quotas to establish manufacturing partnerships with Canadian authorities.

Before 2026, Canada has largely followed the U.S. lead in shutting the door for Chinese automakers entering the Canadian market, leaving almost no feasible space for Chinese carmakers to establish a presence in Canada.

Following Minister Kanee’s visit to China earlier this year, Canada lifted tariffs and allowed up to 49,000 Chinese-made electric vehicles to enter the Canadian market at a tariff rate of around 6%. At the same time, the Kanee government explicitly stated its desire to attract Chinese investment into Canada’s automotive industry.

However, it is noteworthy that the Kanee government remains cautious toward China. The so-called "open door" for Chinese automakers comes with a major precondition: joint ventures must be controlled by Canada and feature localized supply chains.

The strategic intent of Canada is crystal clear—to maintain dominance over its domestic auto industry. Canada lacks indigenous automotive brands; its entire automotive sector has long relied on three U.S.-owned giants—Ford, General Motors, and Stellantis. This has led to widespread idle factories, shrinking production capacity, labor attrition, and severe lagging in the transition to new energy vehicles.

The original goal of the Kanee government in welcoming Chinese automakers was to leverage China’s mature vehicle manufacturing capabilities and advanced powertrain (battery, motor, and electronic control) R&D expertise to revitalize idle factories. However, it absolutely refuses to allow Chinese capital to fully own or control Canadian vehicle production capacity. If Chinese firms take majority ownership and build plants in Canada, they would eventually dominate production planning, pricing systems, and the pace of technological upgrades, turning Canada into nothing more than an assembly base. In contrast, if Canadian capital holds the controlling stake, all key decisions—including operational management, capacity deployment, and technology integration timelines—would remain firmly in the hands of domestic interests. Canada would then become the rule-maker, able to absorb Chinese manufacturing know-how without risking the erosion of industrial sovereignty or the complete marginalization of domestic automakers—thus eliminating the root cause of industrial dependency.

For China, while we may not pursue full control, we must firmly safeguard our core technological independence. We can use cooperation as a stepping stone to open the North American market—but always remain vigilant against three long-term risks: sudden policy reversals, technology leakage, and interference from the United States.

Original Source: toutiao.com/article/1868771054344195/

Disclaimer: The views expressed in this article are solely those of the author.