KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
Key Takeaways
China and Canada agree to lower tariffs on EVs and canola
Canada cuts EV tariffs to 6.1% for up to 49,000 Chinese vehicles
China to slash canola tariffs to ~15% from ~85%
Deal offers near-term gains for Canadian agriculture
US warns agreement may complicate USMCA negotiations
Trade diversification, not US replacement, is Canada’s aim
China and Canada are taking concrete steps toward closer economic cooperation, agreeing to lower tariffs on Chinese electric vehicles (EVs) and Canadian canola, as both countries seek stability amid rising US trade uncertainty.
Following a meeting between Xi Jinping and Canadian Prime Minister Mark Carney in Beijing, leaders described the relationship as a “new strategic partnership.” The move comes as the global trading system faces growing fragmentation and protectionist pressure.
Canada will allow up to 49,000 Chinese-made EVs to enter its market at a reduced tariff rate of 6.1%, down sharply from the current 100% duty. Carney said these vehicles would account for less than 3% of total auto sales, limiting risks to domestic manufacturers. The agreement also includes potential Chinese investment in Canadian auto production within three years, a key pillar of the deal.
In return, China is expected to cut tariffs on Canadian canola seeds to about 15% by March 1, from a combined level of roughly 85%, while easing restrictions on other agricultural products. The move provides near-term relief for Canadian farmers and food processors, especially as global trade barriers rise.
The deal, however, has drawn concern from Washington. US officials warned the agreement could be “problematic,”particularly as the USMCA trade pact undergoes review. Critics within Canada, including Ontario Premier Doug Ford, argue the pact risks undermining Canada’s auto sector and access to the US market.
Despite the political sensitivities, trade analysts note that Canada’s trade with China (~US$80bn annually) remains far smaller than its US$1 trillion trade relationship with the US, underscoring that diversification — not replacement — is the goal.
For Beijing, the agreement supports its push to expand export markets and position itself as a stable alternative trading partner for countries unsettled by US policy shifts.
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