Beijing positioned itself as the champion of free and open trade at the Asia-Pacific Economic Cooperation (APEC) summit that began Friday in the South Korean city of Gyeongju, after US President Donald Trump’s exit after a five-day Asia tour which culminated in a trade deal finalisation with on-off foe, China.
Chinese President, Xi Jinping, told Asia-Pacific leaders at the two-day annual economic regional forum that his country would help to defend global free trade. “We must practice true multilateralism, and enhance the authority and effectiveness of the multilateral trading system with the WTO at its core,” the Chinese leader said.
“The more turbulent the times, the more we must work together,” Xi said at APEC’s opening session. It’s his first visit to South Korea in 11 years.
“The world is undergoing a period of rapid change, with the international situation becoming increasingly complex and volatile,” he said.
Expressing hopes to work with other countries to expand cooperation in green industries and clean energy, Xi called for maintaining supply chain stability, in a riposte to US efforts to decouple its supply chains from China even as Chinese exports of its solar panels, electric vehicles and other green tech have been criticised for creating oversupplies and undercutting the domestic industries of countries it exports to.
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On the sidelines of the summit, Xi had bilateral meetings with new Japanese Prime Minister Sanae Takaichi, Canadian Prime Minister Mark Carney and Thai Prime Minister Anutin Charnvirakul on Friday.
US Secretary of the Treasury Scott Bessent, who attended the summit on Trump’s behalf, said a US move to rebalance its trade relationships would ensure that “each country operates on fair and reciprocal terms.” He also said the US is “investing with its trading partners to build resilient production networks that reduce dependence on vulnerable sectors”.
To the gathering of leaders, Xi asked to “update international economic and trade rules to reflect the changing times, so as to better protect the legitimate rights and interests of developing countries”.
The Chinese President is to meet South Korean President, Lee Jae Myung, on Saturday for a meeting expected to discuss North Korea’s nuclear programme.
Established in 1989 during a period of increased globalisation, APEC champions free and open trade and investment to accelerate regional economic integration.
But the APEC region now faces challenges like strategic competitions between the US and China, supply chain vulnerabilities, ageing populations and the impact of AI on jobs.
Opening the summit as chair, Lee called for greater cooperation and solidarity to overcome new challenges. “It’s obvious that we can’t always stand on the same side, as our national interests are at stake. But we can join together for the ultimate goal of shared prosperity,” the South Korean President said, adding, “I hope we will have candid and constructive discussions on how we can achieve APEC’s vision in the face of the new challenge of a rapidly changing international economic environment.”
Trump’s decision to skip APEC fits with his well-known disdain for big, multi-nation forums that have been traditionally used to address global problems. But his blunt dismissal of APEC risks worsening America’s reputation at a forum that represents nearly 40 per cent of the world’s population and more than half of global goods trade.
Meanwhile, Carney reiterated his government’s plan to double its non-US exports in the next decade, as he said that “our world is undergoing one of the most profound shifts since the fall of the Berlin Wall.”
South Korean officials said they’ve been communicating with other countries to prod all 21 members to adopt a joint statement at the end of the summit so as not to repeat the failure to issue one in 2018 in Papua New Guinea due to US-China discord over trade.
As the host nation, South Korea places a priority on discussing AI cooperation and demographic challenges such as an ageing population and low birth rates, under the theme, ‘Building a Sustainable Tomorrow: Connect, Innovate, Prosper’.
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