Canada Eyes Joint EV Assembly with Chinese Automakers to Diversify Global Supply Chain

Canadian Industrial Minister Melanie Joly announced on February 6, 2026, that the government is actively pursuing joint ventures with Chinese automakers to establish electric vehicle manufacturing and assembly facilities in Canada, with products exported globally. According to The United Daily, Magna International, Linamar, and Martinrea International are among the Canadian automotive component leaders likely to participate in the new合资 plants. The shift aims to reduce reliance on the U.S. market and strengthen a more resilient domestic auto industry. Previously, Canada expressed concerns over unfair subsidies and security issues related to Chinese auto technology. Joly said the government will address software security concerns, adhere to Canadian labor and safety standards, and leverage local supply chains. The government is engaging actively with Chinese automakers, including BYD (002594-CN) and Chery (09973-HK), on new investments. Despite higher labor costs in Canada, Joly noted that co-development and scale can maintain global competitiveness, citing Honda’s affordable Civic produced in Ontario as an example. As part of broader trade normalization, China began lifting tariffs on Canadian agricultural products in January 2026, while Canada agreed to allow up to 49,000 Chinese-made electric vehicles annually and apply a 6.1% most-favored-nation tariff.