Chinese President Xi Jinping made a strong declaration to Asia-Pacific leaders this Friday, October 31, 2025, asserting China’s commitment to safeguarding global free trade. This statement came during an annual regional economic forum notably absent of former U.S. President Donald Trump.
The spotlight shone on President Xi at the Asia-Pacific Economic Cooperation (APEC) summit, which kicked off in Gyeongju, South Korea. His prominent role was accentuated by Mr. Trump’s early departure the previous day, following bilateral discussions aimed at de-escalating their ongoing trade dispute.
Indeed, the entire two-day APEC gathering found itself largely overshadowed by the highly anticipated and separately arranged meeting between Mr. Trump and Mr. Xi.
Mr. Trump hailed his Thursday, October 30, 2025, encounter with Mr. Xi as a resounding triumph. He announced plans to reduce tariffs on Chinese goods, while China, in turn, agreed to permit the export of rare earth elements and commence purchases of American soybeans. These agreements offered a much-needed respite to a global economy left uneasy by the trade friction between the world’s two largest economic powers.
Mr. Trump’s choice to forego the APEC summit aligns with his long-standing skepticism towards large, multi-national forums typically dedicated to resolving global issues. However, his unequivocal dismissal of APEC risks undermining America’s standing within a forum that encompasses nearly 40% of the world’s population and accounts for over half of all global goods trade.
Xi Jinping Champions Multilateralism Amid Global Shifts
During APEC’s opening session, Mr. Xi emphasized the urgent need for collective action, stating, “The more turbulent the times, the more we must work together.” He observed that “the world is undergoing a period of rapid change, with the international situation becoming increasingly complex and volatile.” Furthermore, Mr. Xi urged the maintenance of stable supply chains, a clear counterpoint to U.S. initiatives aimed at reducing its reliance on China’s supply networks.
President Xi also articulated his desire for enhanced international cooperation in burgeoning green industries and clean energy sectors. This comes as Chinese exports of solar panels, electric vehicles, and other green technologies have drawn criticism for potentially causing market oversupply and impacting the domestic industries of recipient nations.
This marks President Xi’s first visit to South Korea in over a decade. On the sidelines of the summit, he engaged in bilateral talks on Friday, October 31, 2025, with leaders including Japan’s new Prime Minister Sanae Takaichi, Canadian Prime Minister Mark Carney, and Thai Prime Minister Anutin Charnvirakul. Mr. Xi is also slated to meet with South Korean President Lee Jae Myung on Saturday, November 1, 2025, where discussions are expected to focus on North Korea’s nuclear program.
Representing Mr. Trump at the summit, U.S. Secretary of the Treasury Scott Bessent stated that America’s push to rebalance its trade relationships aims to ensure “each country operates on fair and reciprocal terms.” He further noted that the U.S. is “investing with its trading partners to build resilient production networks that reduce dependence on vulnerable sectors.”
APEC Navigates a Complex Global Landscape
Founded in 1989 amidst a surge of globalization, APEC’s core mission is to promote free and open trade and investment, thereby fostering regional economic integration. However, the APEC region currently grapples with significant hurdles, including intense strategic rivalries between the U.S. and China, fragile supply chains, an aging global populace, and the disruptive influence of artificial intelligence on employment. The U.S. approach has markedly shifted from economic cooperation to competition with China, characterized by Mr. Trump’s tariff increases and his ‘America First’ doctrine, which have unsettled global markets and challenged decades of established globalization and multilateralism.
Representatives and leaders from 21 Asia-Pacific Rim economies convened at the APEC meeting to strategize on bolstering economic cooperation and confronting common obstacles. As chair, President Lee initiated the summit by urging heightened collaboration and unity to surmount emerging challenges.
President Lee acknowledged the inherent complexities, stating, “It’s obvious that we can’t always stand on the same side, as our national interests are at stake. But we can join together for the ultimate goal of shared prosperity.” He expressed hope for “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.” Meanwhile, Mr. Carney reaffirmed his government’s objective to double its non-U.S. exports within the next ten years, observing that “our world is undergoing one of the most profound shifts since the fall of the Berlin Wall.” Despite Mr. Trump’s positive outlook following his 100-minute discussion with Xi, significant potential for future tensions persists as both nations strive for leadership in manufacturing and the advancement of cutting-edge technologies like artificial intelligence.
Leif-Eric Easley, a professor of international studies at Ewha Womans University in Seoul, commented, “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.”
However, Easley cautioned, “APEC is meant to be more than a venue for a trade war truce. 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 Korea Advocates for Unified APEC Statement
South Korean officials have engaged in extensive diplomatic efforts, urging all 21 APEC member nations to endorse a joint statement at the summit’s conclusion. This push aims to prevent a repeat of the 2018 Papua New Guinea summit, where U.S.-China disagreements on trade prevented a unified declaration.
Last week, South Korean Foreign Minister Cho Hyun indicated that a joint statement unequivocally supporting free trade was improbable, citing divergent stances among APEC members. Instead, he foresaw a broader declaration focusing on regional peace and prosperity.
As the host, South Korea has prioritized discussions on AI collaboration and demographic issues like aging populations and declining birth rates, aligning with the summit’s theme: ‘Building a Sustainable Tomorrow: Connect, Innovate, Prosper.’ According to South Korean officials, APEC members will present successful strategies for addressing AI and demographic shifts, collectively explore solutions, and devise innovative growth strategies throughout this week’s summit.