Apec summit :Xi Jinping promises to protect free trade

Key Concepts

• APEC (Asia-Pacific Economic Cooperation)
• Global Trading Order Upheaval
• Reciprocal Tariffs
• Trade Disruption
• Free Trade System Undergoing Changes
• Global Economic Uncertainty
• Weakening Trade and Investment Momentum
• Realigning Trading Relationships
• China's Economic Influence
• Soured Trade Relations with the US
• Non-US Exports
• Countering China's Expanding Influence
• Trump-Xi Meeting and Trade Truce
• Rare Earth Minerals
• China's APEC Chairmanship

APEC Summit Amidst Global Trade Upheaval

The APEC summit, representing 21 economies that collectively account for half of the world's total trade, convened amidst an unprecedented upheaval in the global trading order. The summit's host, South Korea, acknowledged the significant trade disruption occurring, particularly along the Pacific Ocean, a region heavily impacted by the US's reciprocal tariffs on China and its Asian neighbors. The overarching sentiment was that the free trade system is undergoing sweeping changes, leading to deepening global economic uncertainty and a weakening momentum for trade and investment.

China's Strategic Role and Bilateral Meetings

The summit provided a platform for APEC members to realign their trading relationships. A significant focus was placed on China, the world's second-largest economy.

• China-Canada Relations: President Xi Jinping met with Canadian Prime Minister Mark Carney. Both leaders share a common interest in strengthening their economic ties, especially as both countries are experiencing strained trade relations with the United States. Prime Minister Carney articulated Canada's ambition to "double our non-US exports over the course of the next decade," indicating a strategic shift to diversify trade away from the US.

• China-Japan Relations: Xi Jinping also met with Japan's new Prime Minister, Shinzo Abe. Abe has historically advocated for increased military spending and closer ties with Washington as a means to counter China's expanding influence. However, strained relations between Japan and the Trump administration presented Beijing with an opportunity to potentially undermine traditional alliances and foster closer economic ties with Japan.

Global Geopolitical Context and the Trump-Xi Meeting

President Xi Jinping's attendance at the summit followed a meeting with US President Donald Trump. This bilateral meeting resulted in an agreement to ease tariffs and lessen curbs on rare earth minerals. However, President Trump departed before the main part of the APEC gathering, a move that was noted.

The transcript highlights a broader geopolitical perspective, with Xi Jinping stating, "Currently, the world is facing changes unseen in a century which are accelerating at an unprecedented pace. The international and regional situation is in turmoil."

US Absence and China's Advantage

While the Trump-Xi meeting appeared to have secured a truce in their trade war, many APEC members found themselves caught between the economic pressures exerted by the two global giants. The absence of the US president from the main APEC proceedings was seen as giving China a distinct advantage, which it was actively exploiting. China is looking to further deepen its trading links across the Pacific and is poised to take over the APEC chairmanship the following year, signaling its growing influence within the bloc.

Conclusion

The APEC summit underscored the profound shifts occurring in the global trading landscape. Amidst rising protectionism and geopolitical tensions, China is strategically positioning itself to expand its economic influence, leveraging opportunities presented by strained US trade relations with other nations. The summit served as a critical juncture for countries to reassess their trade strategies and navigate the complexities of an increasingly uncertain global economy.