A recent nongovernmental discussion between China and Canada underscored a gradual stabilization in bilateral ties, with participants noting renewed engagement and emerging areas of cooperation despite ongoing challenges.

Scholars and former senior officials from both countries gathered in Hefei, Anhui province, last month for the ninth meeting of the China-Canada Track Two Dialogue, a forum backed by both governments to foster candid exchanges on bilateral and global issues.

Co-hosted by the Chinese People's Institute of Foreign Affairs and The China Institute at the University of Alberta, the dialogue has become a key mechanism for informal engagement, covering trade, Canada-United States relations, global governance and emerging middle-power dynamics.

The mid-April meeting came as ties show tentative signs of stabilizing after years of strain.

Philippe Rheault, director of The China Institute at the University of Alberta and head of the Canadian delegation, said the dialogue enabled substantive exchanges at a moment when relations are becoming more constructive, even as differences remain.

"There was a shared recognition that sustained communication is important, particularly in a more uncertain international environment," he told China Daily, adding that recent high-level exchanges have helped restore some momentum to the relationship.

He highlighted sectors where complementarities could be deepened, including trade, energy, agriculture, financial services, climate, biodiversity, education, and selected areas of technological and regulatory dialogue.

Rheault cautioned that renewed engagement will be gradual and conditional.

"Participants were clear that renewed engagement does not mean all issues have been resolved," he said. "Trust will need to be built through concrete steps, greater predictability, and a willingness to address difficult questions directly."

Balancing act

The discussions also reflected Canada's need to balance engagement with broader strategic considerations, particularly its relationship with the US.

"For Canada, this means maintaining channels of communication with China and exploring areas where cooperation is possible and aligned with Canadian interests," Rheault said.

Beyond bilateral ties, the dialogue underscored the potential for coordination on global challenges, exchanging views on the multilateral trading system, World Trade Organization reform and dispute settlement, climate change and AI governance.

"These are areas where practical discussion can be useful even in areas where broader strategic differences remain," Rheault said.

"The value of the dialogue lies in its ability to provide a forum for discussing both opportunities and challenges in a format less constrained than usual diplomatic channels," he said.

Wu Xinbo, dean of the Institute of International Studies at Fudan University, described the dialogue as "quite good", with a "relatively positive and constructive" atmosphere.

Held against a backdrop of improving bilateral ties, the discussions were more focused on cooperation, Wu said, noting a shift in Canadian thinking and mindset.

"They have realized that the US is not reliable, and that putting all eggs in one basket is not an option," he said. Canada will have to seek diversified partnerships, and China is an important partner in that process, he added.

Economic and trade cooperation remained central, with the Canadian side visiting high-tech companies in Hefei and showing strong interest, Wu said.

Participants also discussed people-to-people exchanges, including science and technology, education, culture and tourism, he said.

"This is the first dialogue after the improvement of China-Canada relations. It is more like testing the waters," he said.

Wu also highlighted the continued influence of the United States on Canada's China policy, expressing hope that bilateral ties can develop more independently.

Looking ahead, he said the next one to two years present a window of opportunity for both sides to build on current momentum and advance concrete cooperation.