President Xi Jinping sought to cast China as the predictable champion of free and open trade at the APEC forum while his US counterpart skipped the summit.
South Korea played host but all eyes were on China’s Xi Jinping at an annual gathering of Pacific Rim leaders in South Korea on Friday (Oct 31), meeting Canadian, Japanese and Thai counterparts after securing a fragile trade truce with US President Donald Trump.
That agreement, struck just before Trump left South Korea, skipping the main two-day Asia-Pacific Economic Cooperation (APEC) summit, cooled spiralling tensions between the world’s two largest economies that have jolted global commerce.
With Trump playing host for the White House’s annual Halloween party back in Washington, Xi sought to cast China as the predictable champion of free and open trade at the forum, a role the US has dominated for decades.
CALLS FOR DEEPER COOPERATION
“Changes unseen in a century are accelerating across the world,” Xi told leaders of the 21-member APEC bloc on Friday in the historic town of Gyeongju.
“The rougher the seas, the more we must pull together,” Xi added, in a speech calling for protection of the multilateral trading system and deeper economic cooperation.
However, many Asian nations are wary of China’s rhetoric, given its muscular defence posture in the region, dominance in manufacturing and its own willingness to use export controls and other tools in trade disputes.
Deputising for Trump, US Treasury Secretary Scott Bessent told the gathered leaders – many of whom have been hammered by Trump’s barrage of tariffs – that Washington was “rebalancing its trade relationships to build a stronger foundation for global growth”.
The IMF initially cut the global growth outlook after Trump’s “Liberation Day” tariff announcement in April, but has edged it back up as shocks and financial conditions have proved more benign than expected.
XI MEETS JAPAN’S NEW HAWKISH LEADER
Among the most hotly anticipated bilateral meetings, the Chinese leader held his first talks with Japan’s newly elected leader Sanae Takaichi. In brief opening remarks, both leaders said they would seek to advance ties.
“I conveyed my concerns, but also raised areas where we can cooperate. I would like this meeting to serve as a starting point for Japan and China,” Takaichi said after the meeting.
Xi called for managing differences by focusing on the bigger picture and “treating each other as partners, not treating each other as threats, learning from history, and looking toward the future”.
While relations between the historic rivals have been on a sounder footing in recent years, Takaichi’s surprise elevation to become Japan’s first female leader may strain ties due to her nationalistic views and hawkish security policies.
One of her first acts since taking office last week was to accelerate a military build-up aimed at deterring the territorial ambitions of an increasingly assertive China in East Asia. Japan also hosts the biggest concentration of US military abroad.
The detention of Japanese nationals in China and Beijing’s import restrictions on Japanese beef, seafood and agricultural products are also likely to be among sensitive issues on the agenda.
Japanese media said that Takaichi was expected to convey to Xi grave concerns over China’s behaviour, including around the disputed Senkaku Islands, known as the Diaoyu Islands by China.
She was also expected to press for the early release of Japanese citizens detained in China and request that the safety of Japanese expatriates in China be ensured, the reports said.
Her public comments at the start of the meeting focused only on reducing “concerns” and increasing “mutual understanding and cooperation”.
“It could be a frosty get-to-know-you meeting as Xi Jinping has not sent a congratulatory message to Takaichi, wary of her reputation as a China hawk,” Yee Kuang Heng, a professor at the University of Tokyo’s Graduate School of Public Policy, told AFP.
Canada’s relations with China are among the worst of any Western nation, but both are at the sharp end of Donald Trump’s tariff onslaught, even after Xi and the US leader’s deal Thursday to dial back tensions.
Embroiled in a trade dispute with the United States, Canada’s biggest trading partner, Carney told a gathering of executives running parallel to the summit on Friday that Ottawa aimed to double its non-US exports over the next decade.
After his meeting with Xi, Carney said he had accepted an invitation to visit China, which is Canada’s second-biggest trading partner.
“Recently, with the joint efforts of both sides, China-Canada relations have shown a recovery toward a trend of positive development,” Xi told Carney, inviting the Canadian to visit China.
“China is willing to work with Canada to bring China-Canada relations back to the right track,” he added.
“In recent years, we have not been as engaged,” said Carney, accepting Xi’s invitation.
The Canadian leader pointed to “constructive and pragmatic dialogue” as a route to addressing their “current issues”.
He also cited dialogue as a way “to help build a more sustainable, inclusive international system”.
Ties between the two countries fell into a deep freeze in 2018 after the arrest of a senior Chinese telecom executive on a US warrant in Vancouver and China’s retaliatory detention of two Canadians on espionage charges.
China announced preliminary anti-dumping duties on Canadian canola imports in August, a year after Canada said it would levy a 100 per cent tariff on imports of Chinese electric vehicles. Officials from both sides met to discuss those issues this month.
Xi also met Thai Prime Minister Anutin Charnvirakul, saying China would share its development experience and calling for expedited progress on a rail line between the nations and intensify efforts to crack down on cross-border crime.
“The relations and cooperation between the two countries, which had previously stalled, have now been revived,” Anutin said in a statement.
South Korean President Lee Jae Myung, a US ally who finds himself at the frontlines of China’s competition with the United States, will tackle Korean denuclearisation with the Chinese leader at a summit on Saturday, his office said.
As he held his summits, Xi’s commerce minister delivered a speech on his behalf to the gathering of executives, in which he said China was the “ideal” destination for global business and investment.
Elsewhere, Taiwan said it was making progress on a tariff deal with the US, and South Korea said final details of its deal with Washington were almost ready after a breakthrough was agreed on Wednesday.
SOUTH KOREA HOPEFUL OF JOINT DECLARATION
South Korean Foreign Minister Cho Hyun said on Thursday that he was hopeful APEC leaders would issue a joint declaration when the summit concludes on Saturday.
Two APEC member nation diplomats privately expressed scepticism that any statement would be particularly substantive given fractures in global politics.
APEC, which stretches from Russia to Chile and accounts for 50 per cent of global trade, failed to adopt a joint declaration in 2018 and 2019, during Trump’s first presidency.
There was also some business deals on the sidelines with US chipmaker Nvidia agreeing on a US$3 billion AI joint venture with South Korean automaker Hyundai Motor Group.
Nvidia’s CEO Jensen Huang has had a whirlwind week, with Nvidia becoming the first company to surpass a US$5 trillion valuation, but the issue of the US chipmaker’s sale of advanced AI chips in China was seemingly left out of Thursday’s Xi-Trump summit.
Huang said on Friday he hoped the chips could be sold in China, although he stressed it was a decision for Trump.
