China’s Xi Jinping will take centre stage at an annual gathering of Pacific Rim leaders in South Korea on Friday, holding talks with Canadian, Japanese and Thai counterparts after securing a fragile trade truce with U.S. President Donald Trump.
That agreement, struck just before Trump left South Korea, skipping the main two-day Asia-Pacific Economic Cooperation summit, will suspend further curbs on China’s exports of rare earths that threatened to jam up global supply chains.
Bolstering supply chains is a key focus of this year’s APEC talks, hosted in the historic town of Gyeongju. The 21-member economic club aims to encourage cooperation and reduce trade and investment barriers, though decisions made at meetings are non-binding and consensus has been increasingly difficult.
“As the free trade order undergoes dramatic changes, global economic uncertainty is deepening and trade and investment are losing momentum,” South Korean President Lee Jae Myung told the gathered leaders at the opening session on Friday.
U.S. Treasury Secretary Scott Bessent stood in for the absent Trump.
XI MEETS JAPAN’S NEW HAWKISH LEADER
With the leader of the world’s biggest economy absent, attention turns to Xi, who is expected to hold his first talks with Japan’s newly elected leader Sanae Takaichi.
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 U.S. 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.
CANADA SEEKS TO RESTART CHINA ENGAGEMENT
Canadian Prime Minister Mark Carney will meet Xi at 4:00 p.m. (0700 GMT), his office said, aiming to restart broad engagement with China after years of poor relations.
Embroiled in a bitter trade war with its biggest trading partner, the United States, Canada is aiming to wean itself off that overwhelming dependence and seek new markets. China is Canada’s second-biggest trading partner.
Under the leadership of Carney’s predecessor Justin Trudeau, Canadians were detained and executed by the Chinese government and Canada’s security authorities concluded that China interfered in at least two federal elections. Xi also publicly scolded Trudeau, alleging he leaked their discussions to the press.
China announced preliminary anti-dumping duties on Canadian canola imports in August, a year after Canada said it would levy a 100% tariff on imports of Chinese electric vehicles. Senior officials from both sides met to discuss those issues earlier this month, but gave no indication of any looming breakthrough.
Thai Prime Minister Anutin Charnvirakul is also due to meet Xi in the afternoon, Bangkok said, fresh from signing an enhanced ceasefire deal with neighbouring Cambodia on Sunday overseen by Trump.
The U.S. president has repeatedly touted himself as a global peace broker. Xi told Trump on Thursday that China also played a major role in advocating for dialogue and reconciliation on various pressing matters.
SOUTH KOREA HOPEFUL OF RARE JOINT STATEMENT
South Korean Foreign Minister Cho Hyun said on Thursday that negotiations were still taking place on a joint statement even for the ministerial meeting itself, but added that he was hopeful it would be adopted together with a leaders’ declaration when the summit concludes on Saturday.
“We are very close,” he told a briefing. Two APEC member nation diplomats privately expressed scepticism that any statement would be particularly substantive given fractures in global politics. APEC failed to adopt a joint declaration in 2018 and 2019, during Trump’s first presidency.
Nvidia’s CEO Jensen Huang will be speaking this afternoon to a gathering of executives running parallel to the APEC Summit.
Huang has had a whirlwind week, with Nvidia becoming the first company to surpass a $5 trillion valuation but the issue of the U.S. chipmaker’s sale of advanced AI chips in China was seemingly left out of Thursday’s Xi-Trump summit.
Source: Reuters
--Agencies
