GYEONGJU, South Korea (AP) — Chinese President Xi Jinping called for efforts to promote economic globalization and multilateralism at an international economic forum on Friday, as his country positions itself as the defender of free trade systems that observers say are hurt by President Donald Trump’s tariff hikes and “America first” policy.
Xi takes center stage at the Asia-Pacific Economic Cooperation summit that began Friday in the South Korean
city of Gyeongju, as Trump left the country on Thursday after reaching some deals with Xi meant to ease their escalating trade war.
Trump described his Thursday meeting with 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 the world economy, as experts previously warned that a failure to dial down trade tensions between the world’s two largest economies were certain to deepen global economic uncertainties.
This year's two-day APEC summit has been heavily overshadowed by the Trump-Xi meeting that was arranged on the sidelines. With Trump's departure, much of the spotlight is now on Xi.
“The more turbulent the times, the more we must work together,” 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.”
Xi called for maintaining supply chain stability, in a riposte to U.S. efforts to decouple its supply chains from China.
Xi also expressed hopes to work with other countries to expand cooperation in green industries and clean energy. Chinese exports of its solar panels, electric vehicles and other green tech have been criticized for creating oversupplies and undercutting the domestic industries of countries it exports to.
It’s Xi’s first visit to South Korea in 11 years, and he’s scheduled to meet South Korean President Lee Jae Myung and new Japanese Prime Minister new Japanese Prime Minister Sanae Takaichi separately on Friday.
Established in 1989 during a period of increased globalization, APEC represents more than half of global trade and champions free and open trade and investment to accelerate regional economic integration. But the APEC region now faces challenges like strategic competitions between the U.S. and China, supply chain vulnerabilities, aging populations and the impact of AI on jobs. The U.S. strategy has been shifted to economic competitions with China rather than cooperation, with Trump’s tariff hikes and “America first” agenda shaking markets and threatening decades of globalization and multinationalism.
Leaders and other representatives from 21 Asian and Pacific Rim economies are attending the APEC meeting to discuss how to promote economic cooperation and tackle shared challenges. Opening the summit as chair, Lee called for greater cooperation and solidarity to overcome new challenges.
“It's obvious that we can't always stand on the same side, as our nationals interest are at stake. But we can join together for the ultimate goal of shared prosperity," 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 Trump’s optimism after a 100-minute meeting with 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 artificial intelligence.
“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,” Easley said. “Greater multilateral efforts are needed to address the region’s most pressing economic challenges, including resisting costly and destabilizing protectionism, harmonizing regulations for sustainable trade, and coordinating standards for digital innovation.”
South Korean officials said they’ve 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 U.S.-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 emphasizing peace and prosperity in the region.
As host nation, South Korea places a priority on discussing AI cooperation and demographic challenges such as aging population 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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Wu reported from Taipei, Taiwan.
