Canada is seeking to establish a Chinese-Canadian joint venture to build electric vehicles for global export, Industry Minister Mélanie Joly stated, signaling a major policy shift. The move aims to reduce the auto sector.s reliance on the U.S. market and bolster domestic manufacturing. This overture follows a trade détente with China, which includes Canada granting an annual import quota for Chinese EVs without the previous 100% surcharge. The initiative is part of a broader auto strategy launched in response to U.S. tariffs. The strategy includes a new import credit system to reward companies that maintain Canadian production. Canada is also pursuing investment from other countries, recently signing an agreement with South Korea to encourage local automotive manufacturing.

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