The Canadian government is considering launching a joint Canadian-Chinese electric vehicle manufacturing plant in the country, with plans to supply global markets, Bloomberg reports.
According to Canadian Industry Minister Melanie Joly, major Canadian auto parts manufacturers, including Magna International, Linamar, and Martinrea, may participate in the project. These companies already have operations in China, which could simplify the creation of joint production in Canada.
This approach marks a change of course for Ottawa. Previously, the Canadian government criticized China for state subsidies to the auto industry and expressed concerns about the security of technology in Chinese electric cars. At the same time, Joly assured that cybersecurity and labor standards issues could be resolved.
According to her, the software of the cars can be adapted to Canadian safety requirements, and production can be organized in accordance with national labor standards, involving local supply chains.
The Canadian government acknowledges that car production in the country is more expensive than in China, but cites the example of Honda, which successfully produces affordable models in Ontario.
The initiative to attract Chinese automakers is part of a broader trade agreement between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping. In particular, China has agreed to gradually remove tariffs on Canadian agricultural products in exchange for limited duty-free access for Chinese electric vehicles to the Canadian market.
At the same time, the Canadian government is developing a new strategy to support the auto industry amid US tariffs. Ottawa is also negotiating with other countries, including South Korea. Canada wants to attract Hyundai and Kia to local production, as these brands are actively sold on the Canadian market but do not have their own factories in the country.