APEC summit kicks off without TrumpーNHK WORLD-JAPAN NEWS

Key Concepts

• Asia-Pacific Economic Cooperation (APEC): A regional economic forum established to promote free trade throughout the Asia-Pacific region.
• Bilateral Meetings: Meetings between two countries, often held on the sidelines of larger summits.
• Global Trade Order: The system of international rules and agreements governing trade between countries.
• Inflection Point: A moment of significant change or transition.
• Protectionist Trade Policy: Economic policies that restrict imports to protect domestic industries, often through tariffs.
• Tariffs: Taxes imposed on imported goods.
• Rare Earth Metals: A group of 17 chemically similar metallic elements with unique properties crucial for many modern technologies.
• APEC Spirit: The principles of cooperation, solidarity, and mutual trust that underpin APEC's framework.
• Joint Declaration: A formal statement agreed upon by all member countries at a summit.

APEC Summit in South Korea: Key Discussions and Challenges

Leaders of the Asia-Pacific Economic Cooperation (APEC) convened for a two-day summit in Kyongju, South Korea. The summit's agenda included critical issues such as artificial intelligence, aging societies, and declining birth rates. However, a significant focus was placed on the leaders' ability to reach a consensus on trade policy, particularly in light of prevailing protectionist sentiments.

Bilateral Meetings and Diplomatic Engagements

On the sidelines of the main summit, numerous bilateral meetings took place. A notable engagement was the planned meeting between Japanese Prime Minister Takai Sai and Chinese President Xi Jinping. Prime Minister Takai expressed her intention to foster stable ties with Beijing and cultivate a mutually beneficial relationship grounded in shared strategic interests. Concurrently, she aimed to articulate Japan's concerns regarding China's actions to exert pressure on its trading partners and its maritime activities.

Prime Minister Takai also held a summit with the South Korean president, emphasizing the importance of developing their bilateral relationship in a future-oriented and stable manner, building upon existing foundations. This meeting was part of Takai's efforts to establish new relationships, given her recent assumption of the prime ministership.

Global Trade Order at a Critical Juncture

The chair of the APEC summit issued a stark warning, stating that the global trade order is at a "critical inflection point." This sentiment was echoed by the South Korean president, who urged the APEC members to demonstrate cooperation amidst the tariff pressures initiated by Washington. The president expressed hope that the "APEC spirit," characterized by cooperation, solidarity, and mutual trust, would be fully evident at the summit in Kyongju.

Challenges in Reaching Consensus on Free Trade

Despite the stated principles of APEC, leaders encountered difficulties in achieving consensus on free and open trade. Foreign and trade ministers, who held preparatory talks before the summit, were unable to adopt a joint declaration. This division stemmed from the members' differing stances on US President Donald Trump's protectionist trade policies, including his imposition of tariffs. Although President Trump was not personally attending the summit, his policies continued to create significant disruption within the decade-old framework of economic cooperation.

Impact of US-China Trade Conflict

The US-China trade conflict cast a long shadow over the APEC gathering. A high-profile summit involving President Trump and President Xi Jinping, held prior to the APEC meeting, garnered considerable attention. Reports indicated that President Trump and President Xi reached an agreement to temporarily suspend Beijing's stricter regulations on rare earth metal exports, a key concern for the US. However, this agreement was described as a temporary pause, with President Trump reportedly making concessions, including reducing tariffs imposed on China from 20% to 10%. The transcript suggests that China's strategic handling of rare earth metals effectively compelled a truce in the trade war initiated by the US. Nevertheless, risks stemming from the US-China trade conflict were acknowledged as remaining significant.

NHK World's Coverage

NHK World's Sigimoto Odier provided on-the-ground reporting from Kyongju, South Korea. Odier highlighted the ongoing difficulties in achieving consensus on free trade and the impact of US protectionist policies. He also detailed Prime Minister Takai's busy schedule and her diplomatic engagements, including her meetings with the South Korean president and President Xi Jinping.

Synthesis and Conclusion

The APEC summit in South Korea underscored the profound challenges facing the global trade order, exacerbated by protectionist policies and the ongoing US-China trade dispute. While the summit aimed to foster cooperation and address regional economic issues, deep divisions among member states regarding trade policy hindered the adoption of a joint declaration. Bilateral meetings, particularly between Japan and China, and Japan and South Korea, aimed to navigate these complexities and build stable relationships. The temporary truce in the US-China trade war, influenced by China's rare earth metal strategy, offered a brief respite but did not fully resolve underlying tensions. The summit served as a critical juncture, highlighting the need for renewed commitment to the principles of cooperation and mutual trust within the APEC framework.