Key facts
- Lotus electric vehicles from Geely will be shipped to Canada starting in July.
- This is the first sale of Chinese-owned and manufactured vehicles under a new trade agreement.
- The agreement permits up to 49,000 Chinese EVs annually to enter Canada with reduced tariffs.
- Other Chinese EV brands, including Chery and BYD, are also preparing to enter the Canadian market.
- Canada aims to significantly increase its exports to China and attract investment in its EV supply chain.
China's Ambassador to Canada, Wang Di, announced that Geely Holding Group's Lotus brand will begin shipping electric vehicles to Canada in July. This initiative is part of an agreement between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping, which allows up to 49,000 Chinese-manufactured EVs to enter Canada annually at a reduced tariff rate. Wang stated that a ceremony will be held in Montreal for the delivery of the first vehicles.
Ambassador Wang indicated that other Chinese brands, such as Chery and BYD, are also in the process of completing necessary procedures to enter the Canadian market. BYD Executive Vice President Stella Li previously suggested that sales for her company might commence next year. Tesla, a U.S.-based company, has already imported vehicles manufactured in China into Canada.
Canada is also seeking to attract joint ventures and investments into its domestic EV supply chain. Chinese EV makers have expressed interest in such ventures but will initially focus on establishing sales and assessing market demand. The decision to permit Chinese EV imports has drawn criticism from some U.S. officials and lawmakers.
During his January visit to China, Prime Minister Carney outlined a goal to increase Canada's exports to China by 50% by 2030. China's Minister of Foreign Affairs, Wang Yi, suggested that exports could potentially double. Ambassador Wang highlighted that Canada could supply significantly more crude oil to China and sees potential for increased liquefied natural gas (LNG) purchases. He also pointed out the substantial untapped market for Canadian agricultural products in China.
While China has reduced tariffs on some Canadian goods, duties on canola oil and pork remain, with tariff relief on other products set to expire at year-end. Ambassador Wang stressed the importance of mutual respect, equality, and reciprocity in resolving trade issues, warning that deviations from these principles could have negative consequences.