Chinese leader Xi Jinping and Canadian PM Mark Carney have announced lower tariffs, signalling a reset in their countries' relationship after a key meeting in Beijing.

China is expected to lower levies on Canadian canola oil from 85% to 15% by 1 March, while Ottawa has agreed to tax Chinese electric vehicles at the most-favoured-nation rate, 6.1%, Carney told reporters.

The deal is a breakthrough after years of strained ties and tit-for-tat levies. Xi hailed the "turnaround" in their relationship but it is also a win for Carney, the first Canadian leader to visit China in nearly a decade.

He has been trying to diversify Canadian trade away from the US, his country's biggest trading partner, following the uncertainty caused by Trump's on-again-off-again tariffs.

The deal could also see more Chinese investments in Canada, right on America's doorstep.