China’s Xi promises to protect free trade at Apec as Trump snubs major summit
Chinese leader Xi Jinping has told Asia-Pacific leaders that his country will help to defend global free trade at an annual economic regional forum snubbed by US President Donald Trump.
Mr Xi took centre stage at the Asia-Pacific Economic Co-operation (Apec) summit that began on Friday in the South Korean city of Gyeongju, as Mr Trump left the country a day earlier after reaching deals with Mr Xi meant to ease their escalating trade war.
This year’s two-day Apec summit has been heavily overshadowed by the Trump-Xi meeting that was arranged on the sidelines.
Mr Trump described his Thursday meeting with Mr Xi as a roaring success, saying he would cut tariffs on China, while Beijing had agreed to allow the export of rare earth elements and start buying American soybeans.
Their deals were a relief to a world economy rattled by trade tensions between the world’s two largest economies.
Mr Trump’s decision to skip Apec fits with his well-known disdain for big, multi-nation forums that have been traditionally used to address huge global problems, but his blunt dismissal of Apec risks worsening America’s reputation at a forum that represents nearly 40% of the world’s population and more than half of global goods trade.
“The more turbulent the times, the more we must work together,” Mr Xi said during Apec’s opening session.
“The world is undergoing a period of rapid change, with the international situation becoming increasingly complex and volatile.”
The Chinese president called for maintaining supply chain stability, in a riposte to US efforts to decouple its supply chains from China.
Mr Xi also expressed hopes to work with other countries to expand co-operation in green industries and clean energy.
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.
It is Mr Xi’s first visit to South Korea in 11 years, and he is scheduled to meet new Japanese Prime Minister Sanae Takaichi on Friday and South Korean President Lee Jae Myung on Saturday.
South Korean officials said a Lee-Xi meeting would focus on dealing with North Korea’s nuclear programme.
US secretary of the treasury Scott Bessent, who attended the summit on Mr Trump’s behalf, said a US move to rebalance its trade relationships would ensure that “each country operates on fair and reciprocal terms”.
He added that the US is “investing with its trading partners to build resilient production networks that reduce dependence on vulnerable sectors”.
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 such as strategic competitions between the US and China, supply chain vulnerabilities, ageing populations and the impact of artificial intelligence (AI) on jobs.
The US strategy has been shifted to economic competitions with China rather than co-operation, with Mr Trump’s tariff hikes and “America first” agenda shaking markets and threatening decades of globalisation and multinationalism.
Leaders and other representatives from 21 Asia-Pacific Rim economies are attending the Apec meeting to discuss how to promote economic co-operation and tackle shared challenges.
Opening the summit as chairman, Mr Lee called for greater co-operation 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,” Mr Lee said.
“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.”
Despite Mr Trump’s optimism after a 100-minute meeting with Mr Xi, there continues to be the potential for major tensions between the countries, with both seeking dominant places in manufacturing and developing emerging technologies such as AI.
“It is certainly a contribution to bring the leaders of the two largest economies together for a meeting where they agreed to withdraw their most extreme tariff and export control threats. As a result, worst-case outcomes for global trade were averted,” said Leif-Eric Easley, professor of international studies at Ewha Womans University in Seoul.
“However, Apec is meant to be more than a venue for a trade war truce,” Prof Easley said.
“Greater multilateral efforts are needed to address the region’s most pressing economic challenges, including resisting costly and destabilising protectionism, harmonising regulations for sustainable trade, and co-ordinating standards for digital innovation.”
South Korean officials said they have 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.
South Korean foreign minister Cho Hyun said last week that issuing a joint statement strongly endorsing free trade would be unlikely because of differing positions among Apec members.
He instead anticipated a broader declaration emphasising peace and prosperity in the region.
As host nation, South Korea places a priority on discussing AI co-operation and demographic challenges such as ageing populations and low birth rates, under the theme Building a Sustainable Tomorrow: Connect, Innovate, Prosper.
South Korean officials say Apec members will share exemplary cases of responses to AI and demographic issues, explore common steps and formulate new growth strategies during this week’s summit.
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