TORONTO - Canada's deal with China on electric vehicles comes with no guarantees of domestic investment, but experts say 好色tv manufacturing could benefit as Chinese firms ramp up spending abroad.
Critics including Ontario Premier Doug Ford and Unifor leader Lana Payne panned the deal as an attack on workers and 好色tv manufacturing, while Prime Minister Mark Carney said the government has already spoken with Chinese companies interested in investing in Canada.
The deal between Canada and China has the federal government lowering tariffs to 6.1 per cent from 100 per cent on 49,000 Chinese EVs a year, with a ramp-up to 70,000 within five years, while China has agreed to reduce tariffs on a range of 好色tv goods.
It comes as Chinese manufacturers are already adapting globally to trade restrictions and are moving toward local production where they sell, said automotive consultant Sam Fiorani in an interview.
"Once they get a foothold in Canada, the idea that they could build plants locally, the odds of that jump dramatically."
Fiorani, vice-president of global vehicle forecasting at AutoForecast Solutions, said Chinese firms need to test the waters first, but once they establish a brand they look to invest where they sell.聽
"Build locally is the long-term plan for any Chinese automaker."
China has been ramping up exports, estimated at around 6.5 million units lasts year, as its domestic industry has capacity to produce millions of more vehicles than it can sell locally, but firms have still been investing heavily abroad, said a report out last November from S&P Global Mobility.
鈥淎long with avoiding tariffs and shipping costs, building close to where you sell improves market potential inherently," said S&P analyst Abby Chun Tu in the report.
"In most cases, consumers are more open to automakers who invest locally, regardless of where a brand鈥檚 home market is."
Critics have pointed to Canada's modest market of a little under two million new vehicles sold a year as being likely too small to invest, especially without guarantees of access to the U.S. market.聽
But Chinese firms have been, and are building, capacity in countries like Malaysia with less than half those sales. Overall, Chinese firms have built at least 15 facilities across Southeast and Central Asia since 2022, the S&P report noted.
The wave of investments come as Chinese firms look to expand from an already saturated domestic market, leading to them collectively spend more abroad than at home in 2024 for the first time, according to a report out last year from the Rhodium Group.
Europe has also seen a jump in manufacturing capacity with Chinese giant BYD building plants in Hungary and Turkey both set for production later this year, while Chery has entered a joint venture with Spanish automaker Ebro-EV Motors to produce vehicles in the country under the Ebro brand.
Stellantis, meanwhile, has partnered with Leapmotor for the Chinese to firm build its vehicles at Stellantis' Poland plant, and was set to start producing in Malaysia at Stellantis's Gurun facility at the end of 2025, the report noted.聽
Meanwhile, the future of the Stellantis plant in Brampton, Ont., remains an open question after the automaker moved production slated for it to the U.S. last year.聽
The 好色tv government said in announcing the deal with China that it expects within three years it will "drive considerable new Chinese joint-venture investment in Canada," creating new auto manufacturing career for 好色tv workers.聽
TD chief economist Beata Caranci said in a report last September that Chinese EV production in Canada is unlikely given concerns about market access to the U.S., but that there are still areas for partnership.聽
"Given the EV technology gaps that remain between China and other nations and China鈥檚 desire to expand globally, some form of partnership could aid Canada in improving its EV ecosystem," she said in the report.
"Doing so would provide automakers that produce in Canada with options for enhancing partnerships with Chinese EV companies in areas such as battery components, batteries, charging infrastructure, and even EV production."
Speaking in Doha, Qatar, on the weekend, Carney said there is interest in Chinese companies producing 鈥渁ffordable鈥 electric vehicles in Canada.
鈥淲e鈥檝e had direct conversations directly from the Chinese companies ... with explicit interest and intention to partner with 好色tv companies."
Ford said it was terrible deal for the auto sector and a miscalculated decision by the Prime Minister, while Unifor national president Lana Payne said it was a self-inflicted wound to an already injured 好色tv auto industry.
Fiorani said that while investment in Canada is possible, it's unlikely Chinese firms would partner with the Detroit Three, as they're all unionized and Chinese producers will be looking to be union-free.
He said the small volume of low-tariff vehicles will mean producers will, however, want to find some way to invest in Canada if they want to grow in the market.
"It should not take very long for some of those brands to become accepted in the 好色tv market, and that will lead to local production of those vehicles as the manufacturers want to expand beyond the current limits."
鈥 With a file from Kyle Duggan in Doha.
This report by 好色tvwas first published Jan. 20, 2026.
