APEC Summit a week away, with regional trade, AI cooperation and supply chain stability on the agenda

[Financial News] The Asia-Pacific Economic Cooperation (APEC) Summit, which will discuss regional trade, artificial intelligence (AI) cooperation and supply chain stability among its key agenda items, is just a week away.
The theme of the meeting, to be held over two days, from the 18th to the 19th, in Shenzhen, Guangdong Province, China, is “Building an Asia-Pacific Community, Promoting Shared Prosperity.” China, the host, is highlighting openness, innovation and cooperation as key themes and seeks to use this APEC meeting as an opportunity to showcase its achievements in economic and technological development and expand its influence in the international community.
This will be the third time China has hosted the APEC Summit, following Shanghai in 2001 and Beijing in 2014, and the first time in 12 years.
The biggest focus is the U.S.-China summit. In particular, attention is on the impact on bilateral relations as the Jensen Huang scandal expands into issues involving Chinese espionage cases and national security.
The most pressing issue is implementation of the trade truce agreement. In Busan last October, the two countries agreed to suspend some retaliatory trade measures, including high tariffs and China's rare-earth export controls, and resume purchases of U.S. agricultural products. They then extended the trade truce until January 10 next year in Washington.  The United States continues to raise the issues of China's rare-earth supplies and fulfillment of its pledge to buy U.S. agricultural products, while China has expressed concern over U.S. trade restrictions on China.
Export controls on advanced technologies, including semiconductors and AI, are also a key issue.
If the two leaders reaffirm implementation of the trade agreement or agree to follow-up negotiations, it could help reduce uncertainty in bilateral relations. Trump, who lost the midterm elections, needs to manage trade tensions with China. China, too, needs a favorable external environment for economic recovery while seeking to avoid pressure from additional U.S. tariffs.
This will be the fourth meeting during Trump's second term, with the two leaders set to meet again about two months after their summit in Washington, D.C., last September.  
The event drawing global attention at this APEC meeting is whether the first-ever trilateral summit of the leaders of the United States, China and Russia will take place.
The Kremlin in Russia said preparations for the meeting were under way, and China's Ministry of Foreign Affairs also confirmed on the 4th that it was in communication with the countries concerned.
President Trump said on the 8th that he expected to meet with Chinese President Xi and Russian President Putin.
If the leaders of the three countries hold a separate summit on site, it would be a first and a major event for the international community. It would also carry great symbolic significance, bringing together the leaders of three major nuclear powers to discuss international issues. The meeting has also been likened to the Yalta Conference, where the leaders of the United States, Britain and the Soviet Union discussed the postwar international order toward the end of World War II.
The Wall Street Journal (WSJ) noted on the 9th (local time) that differences between the United States and China over the format of the meeting could derail the trilateral summit itself. Trump reportedly wants a meeting where they can freely exchange views off the cuff, while Xi is said to insist that they issue only an agreed statement. The U.S. side is also keen to discuss nuclear disarmament, but China is keeping its distance, saying the size of its nuclear arsenal differs greatly from those of the United States and Russia.
The possibility of a North Korea-U.S. summit is also being discussed in connection with the meeting, but the likelihood of it taking place is low.
This South Korea-China summit is an opportunity to maintain communication with Xi, who is expected to secure a fourth consecutive term at next year's Party Congress. It is significant as a chance for the two leaders to build trust and maintain momentum in improving bilateral relations.  On the economic front, attention is also focused on whether the second phase of negotiations on the Korea-China Free Trade Agreement (FTA) and discussions on AI cooperation will make progress.
By contrast, whether Japanese Prime Minister Sanae Takaichi will hold a summit with Xi remains uncertain. Amid tensions between China and Japan, there is also a high likelihood that the two leaders will not meet.
 


[email protected] Lee Seok-woo, International Affairs Specialist Reporter