Chinese President Xi holds first formal talks with Japan's new PM Takaichi

Key Concepts

• APEC Summit: Asia-Pacific Economic Cooperation summit, a regional forum for economic cooperation.
• Multilateralism: The principle of participation by three or more parties, especially the governments of different countries.
• Global Free Trade: A system of international trade without tariffs or other trade barriers.
• Supply Chains: The sequence of processes involved in the production and distribution of a commodity.
• THADD (Terminal High Altitude Area Defense): A U.S. missile defense system deployed in South Korea.
• Pragmatism: A practical approach to problems and affairs.
• Strategic Relationship: A relationship between countries that is based on shared long-term goals and interests.
• Regional Hotspots: Areas of potential conflict or tension in a region.
• High-Quality Growth: Economic growth that is sustainable, inclusive, and environmentally friendly.
• Self-Reliance: Dependence on one's own powers and resources rather than those of others.

Chinese President's Diplomatic Push at APEC Summit

The Chinese president has been actively engaged in diplomatic efforts at the APEC summit in Gyongju, South Korea, focusing on reaching consensus with the United States and maintaining stable ties with Japan.

Meetings with International Leaders

• Japan: President Xi Jinping met with Japan's new Prime Minister, Fumio Kishida, in their first meeting since she took office. This meeting aimed to develop relations on the "right track" and maintain communication to advance ties. Despite expectations of a frosty discussion due to past controversies regarding Taiwan and Japan's wartime history, observers suggest both leaders recognized that volatility benefits no one and prioritized pragmatism. However, actions were seen as more significant than words, with neither leader smiling during their handshake. Prime Minister Kishida expressed concerns about the Senkaku/Diaoyu Islands and tensions in the South China Sea, indicating a need to assess the persistence of warming bilateral ties after the summit.
• Canada: President Xi also met with Canadian Prime Minister Justin Trudeau, marking their first formal discussion since 2017. Xi stated that relations had shown recovery and invited Trudeau to visit China, an invitation Trudeau accepted. This signifies a significant turnaround in relations, especially considering the strained ties of the past three years.

China's Stance on Global Free Trade and Regional Stability

• Defense of Global Free Trade: In his address to the APEC summit, with U.S. President Donald Trump absent from the main leaders' session, President Xi pledged a defense of global free trade and outlined a five-point plan for a more inclusive and open Asia-Pacific economy. China positioned itself as a defender of rules-based global free trade, aiming to be a stabilizing force and expressing a desire to work with other nations for greater stability and prosperity.
• Reassurance and Openness: China reassured other countries of its continued openness to the world. This message follows an agreement with the U.S. to dial down tensions, including suspending restrictions on rare earth exports and reducing some tariffs on Chinese goods.
• Domestic Economic Challenges: Despite these pronouncements, doubts exist about China's ability to fully implement its agenda due to its own domestic economic weaknesses. China has announced a new five-year plan focused on high-quality growth driven by high technology and self-reliance, but this is challenged by ongoing tensions with the U.S.

South Korea's Role and Summit Declaration

• Resetting Relations with China: South Korean President Moon Jae-in was scheduled to meet with President Xi Jinping to reset strained relations, particularly following the deployment of THAAD in South Korea. THAAD, intended to intercept North Korean missiles, triggered fury from Beijing due to its radar posing a potential threat to China's security. Relations have not fully recovered since, with restrictions on Korean pop culture and entertainment in China.
• Easing Tensions and Dialogue: South Korea has taken steps to diffuse tensions, such as easing visa restrictions for Chinese tourists, and hopes China will reciprocate. President Moon plans to seek Beijing's support in easing tensions on the Korean Peninsula and encouraging North Korea to return to dialogue.
• Dispute over Summit Declaration: As the host of the APEC summit, South Korea is keen on issuing the Gyongju Declaration. However, there are concerns about reaching a consensus due to a dispute over the wording of the statement, specifically regarding the inclusion of "free trade." The United States reportedly does not want this phrase included, while other economies advocate for its inclusion. South Korean officials are working until the last minute to achieve a declaration, which is crucial for them to consider the APEC meeting a success.

Conclusion

The APEC summit in Gyongju saw China's president actively engaging in diplomacy, aiming to stabilize relations with key partners like Japan and Canada, and positioning China as a proponent of global free trade. While China projects an image of stability and openness, domestic economic challenges and ongoing geopolitical tensions, particularly with the U.S., present significant hurdles. South Korea, as the host, faces the challenge of navigating these complexities to achieve a successful summit declaration, with particular focus on the wording around free trade and the broader goal of de-escalating regional tensions. The long-term impact of these diplomatic efforts and the persistence of warming ties remain to be seen.