Socialism With Chinese Characteristics in Action

Political Brief – Socialism with Chinese Characteristics: Insights from the Recent Canada-China Trade Agreement.

This political brief intends to exemplify the political philosophies that the Chinese Communist Party are guided by and how they are put into action. It will cover the recent Chinese trade agreement with Canada in relation to Socialism with Chinese characteristics.

The preliminary agreement-in-principle reached on January 16, 2026, between Canada and China announced after PM Mark Carney’s meetings with President Xi Jinping highlights how Socialism with Chinese Characteristics operates in practice on the global stage. This pragmatic model, rooted in Marxist principles adapted to China’s realities, combines strong state guidance with market tools to achieve mutual development and high-quality growth.

1. Core Features in Action: State-Led Win-Win Cooperation

• Under Xi’s “Thought on Socialism with Chinese Characteristics for a New Era,” China prioritizes “high-quality development,” tech self-reliance, and global partnerships that benefit both sides.
• The deal allows up to 49,000 Chinese EVs annually into Canada at a reduced 6.1% MFN tariff (down from 100% imposed in 2024), with expectations this will “catalyse considerable new Chinese joint-venture investment” in Canadian auto/EV manufacturing.
• Official statements emphasize building Canada’s EV supply chain, creating jobs for Canadian workers, and fostering “trusted partners.” This mirrors China’s approach: using outbound investment and tech transfer to build resilient, shared industrial ecosystems rather than zero-sum competition.
• In exchange, China is expected to slash tariffs on Canadian canola seed to ~15% (from ~84-85%) by March 1, 2026, unlock access for canola meal, lobsters, peas, crabs (tariff relief to end-2026), and boost ~$3-4B in annual exports for Canadian farmers.

This reciprocal structure reflects the model’s emphasis on “dual circulation” (domestic + international markets) and BRI-style win-win: China gains market access for its world-leading EV sector (producing ~60% of global EVs), while Canada diversifies from US reliance amid trade uncertainties.

2. Pragmatism Over Dogma: Adapting to a Multipolar World

• Deng Xiaoping’s “seeking truth from facts” China tailors socialism to concrete conditions, here responding to global fragmentation with targeted deals that promote common prosperity.
• The agreement is part of broader cooperation in energy, agri-food, green tech, and macroeconomic stability. Canada eyes Chinese partnerships in offshore wind and clean energy; China supports Canada’s 2029 APEC bid while hosting 2026 APEC.
• Critics (e.g., some in Ontario’s auto sector) raise job concerns, but the framework prioritizes long-term build-out: joint ventures could see Chinese firms like BYD/CATL invest domestically in Canada, echoing successful models elsewhere.
• This contrasts with Western protectionism (e.g., US 100% tariffs)—China’s model offers an alternative: non-interventionist, development-focused ties that advance the energy transition affordably.

3. Broader Implications for Global Socialism Evolution

• Not exportable, but instructive: Socialism with Chinese Characteristics demonstrates how state direction + market efficiency can deliver massive scale (e.g., EV dominance, poverty alleviation) while engaging pragmatically abroad.
• In 2026’s turbulent context—US tariffs, CUSMA review uncertainties—this deal shows multipolar cooperation thriving. Canada gains cheaper EVs, supply chain resilience, and export relief; China advances its high-quality growth abroad.
• As China targets socialist modernization by 2035, such partnerships reinforce shared development over confrontation.

A clear example of how this evolving socialist path navigates a changing world with practical, results-oriented, and focused on mutual gains.

With this in mind it is key to understand how China acts in foreign diplomacy as they strictly guided on a theoretical and practical basis. Other countries have the opportunity to better understand the functionality and workings of China’s geopolitical actions and goals.