Faced with new global challenges, the leaders of China and Canada pledged on Friday to improve relations between their two nations.

President Xi Jinping told visiting Canadian Prime Minister Mark Carney that he was willing to continue working to improve ties, noting that talks have been under way on restoring and restarting co-operation since the two held an initial meeting in October on the sidelines of a regional economic conference in South Korea.

“It can be said that our meeting last year opened a new chapter in turning China–Canada relations towards improvement,” Xi said.

In a joint statement, the two leaders agreed to resume high-level economic, financial strategic dialogue, expand trade and investment, enhance co-operation in agriculture, safeguard the stability of the global supply chain and fight telecom scams and narcotics.

The two countries have reached a preliminary, but landmark, trade arrangement to remove trade barriers and reduce tariffs, Carney said.

Canada will allow in up to 49,000 Chinese electric vehicles with the most-favoured-nation tariff rate of 6.1 percent, he said, with China expected to lower tariffs on Canadian canola seed to a combined rate of approximately 15 percent.

"This change represents a significant drop from the current combined tariff levels of 84 percent," Carney said.

Canada followed the United States in putting tariffs of 100 percent on EVs from China and 25 percent on steel and aluminium under Carney's predecessor, Justin Trudeau.

Asked to compare Canada's relationship with China to its ties with the United States, Carney said the former is one that is "more predictable".

He attributed that to having addressed areas for co-operation as well as differences between both countries in his meetings with Chinese leaders.

"And that sort of candid and consistent dialogue, frank dialogue that ⁠leads to a more predictable and effective relationship," he said.

China, he added, will allow Canadian visitors to enter the country visa-free.

"I'm very pleased to share that President Xi in our meeting today has committed to ensuring visa-free access for Canadians travelling to China," Carney said.

China's central bank has also renewed a bilateral currency swap agreement with the Bank of Canada for another five years, ⁠with a size of 200 billion yuan, the People's Bank of China said. (Agencies/Xinhua)