Canada’s International Trade Minister Maninder Sidhu met with several of China’s biggest EV manufacturers during an official visit to the country this week.
This was the first trip to the region by a Canadian minister since 2018, and comes after Canada and China reached a new trade framework earlier this year, allowing Chinese-made electric vehicle (EVs) back into the country.
While in Guangzhou, Sidhu held talks with BYD, XPeng, and Guangzhou Automobile Group, focusing on how these companies could enter the Canadian market under the country’s newly established EV import framework.
The discussions also touched on regulatory requirements, supply chain expectations, and the potential for longer-term investment in Canada’s growing EV ecosystem, the government said in a press release.
China makes some of those most advanced electric vehicles in the world, and ensuring Canadians have access to affordable EVs means working with global partners.
— Maninder Sidhu (@MSidhuLiberal) April 16, 2026
That’s why I met with some of the largest EV manufacturers like BYD, XPeng and Aion in Guangzhou to discuss… pic.twitter.com/29YnHtOu2h
The meetings come just months after Canada introduced a major policy shift that reopens the door to Chinese-built EVs. Under the updated framework, up to 49,000 vehicles per year can be imported at a reduced tariff rate of 6.1%, replacing the steep tariffs that had effectively blocked access to the market since 2024.
That annual cap is expected to increase gradually, potentially reaching 70,000 units within five years. The framework also includes provisions encouraging foreign automakers to establish a local presence within a set timeframe. This could include partnerships, joint ventures, or fully owned facilities tied to Canadian jobs and battery production.
BYD has already begun exploring a Canadian expansion strategy. Industry discussions suggest the company is targeting an initial rollout of up to 20 retail locations, starting in Ontario before expanding to other major markets like British Columbia and Quebec.
BYD executives have previously acknowledged they are evaluating the possibility of building a manufacturing facility in Canada, though any investment would likely need to align with federal expectations around domestic labour, parts sourcing, and supply chain development.
Along with BYD, several other Chinese brands—including Chery, and Geely—are actively working through regulatory approvals and certification processes, with expectations that the first vehicles could arrive in Canada before the end of 2026. Tesla is also expected to take advantage of the revised tariff structure, potentially resuming imports of Shanghai-built vehicles as it did prior to the 2024 tariff changes.
Related Stories:
• BYD, Chery, and Geely preparing to launch EV sales in Canada this year
• BYD Is Already Cleared to Sell EVs in Canada, Giving It a Big Head Start Over Rivals
• BYD targets Toronto first in push to launch up to 20 Canadian dealerships
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