Chinese President Xi Jinping took center stage at a recent Asia-Pacific economic summit, leveraging his position as the region’s most influential geopolitical leader. On Friday, he actively engaged with countries to foster trade and investment, concurrently issuing a discreet warning against aligning with the United States in its push to decrease global dependence on Chinese supply chains.
With President Trump’s unexpected departure from South Korea the day prior, Mr. Xi found himself as the sole superpower representative at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. He was observed warmly greeting and shaking hands with various world leaders, as well as economic and finance ministers, who approached him during the opening of the meeting.
Seizing this moment in the international spotlight, Mr. Xi vigorously promoted China, the world’s second-largest economy and a manufacturing powerhouse, to an audience that included the leaders of Japan, Canada, Australia, and the host nation, South Korea. Notably, he extended an invitation to Prime Minister Mark Carney, who had recently been rebuffed by President Trump, to visit China. He also held a meeting with Japan’s new leader, Sanae Takaichi, despite her prior vocal criticism of Beijing’s expanding regional influence.
In a key address, Mr. Xi advocated for strengthening global industrial supply chains. This was widely interpreted as a veiled critique of Western nations’ strategies to diversify their manufacturing away from China. He stated emphatically that China would ‘adhere to the principle of ‘joining hands’ rather than ‘letting go,’ and ‘extending chains’ rather than ‘breaking chains.’”
Furthermore, in a speech delivered by a Chinese representative to business leaders, Mr. Xi indirectly criticized the United States. He asserted that APEC economies should “oppose protectionism, resist unilateral bullying, and prevent the world from returning to the law of the jungle.”
However, China’s call for international unity was somewhat undermined by its recent actions. Earlier in the month, Beijing had proposed extensive new export controls on rare earth minerals. These controls would have granted China, which accounts for approximately 90% of the world’s supply of these critical minerals essential for modern technology like semiconductors, batteries, and jets, immense power over other nations.
These rare earth controls were introduced by China in retaliation to U.S. trade measures, a move that prompted significant concern in other countries.
Dylan Loh, an associate professor of public policy and global affairs at Nanyang Technological University in Singapore, commented, “The recent rare earth controls are an exercise of geopolitical leverage in the context of the U.S.-China economic conflict which will have not gone unnoticed.”
The rare earth controls were only temporarily halted on Thursday, following discussions between Mr. Xi and Mr. Trump, where both leaders agreed to a trade truce.
Song Guoyou, an expert on U.S.-China economic relations at Fudan University in Shanghai, defended China’s rare earths export policy. He argued it was a necessary response to U.S. tariffs on Chinese goods and restrictions on American technology exports.
“These actions have destabilized the regional flow of trade and production,” Mr. Song explained. “This is precisely why China is calling for joint efforts to maintain the stability and smooth operation of these chains.”
Mr. Song elaborated that Mr. Xi’s remarks on supply chains served as an appeal to other governments not to emulate America’s approach of using tariffs, imposing export restrictions, and making excessive claims for national economic security.
“Was the stability of the rare earth supply chain a concern for most regional members before?” Mr. Song questioned. “Clearly not. So when did it become an issue? It arose after the United States continuously imposed trade suppression and export controls on China.”
The meeting between Mr. Xi and Mr. Trump on Thursday in Busan, located approximately 50 miles south of Gyeongju, resulted in several concessions. The U.S. agreed to reduce some tariffs on Chinese goods, suspend port fees for Chinese ships, and delay export controls that would have limited Chinese companies’ access to American technology.
In exchange, China committed to resuming purchases of American soybeans and temporarily pausing its new export controls on rare earths. The United States also reported that China pledged to intensify efforts to curb the flow of precursor chemicals used in the production of fentanyl.
Mr. Loh highlighted that Mr. Xi utilized the APEC forum to advocate for “practical cooperation” across the region, which would inherently involve China.
Mr. Xi referenced China’s ambitious Belt and Road global infrastructure initiative, alongside two significant trade agreements: the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Such agreements are crucial for China to counteract U.S. strategies aimed at excluding Chinese companies from global trade networks.
Many countries in the Asia-Pacific region find themselves in a precarious position, balancing the competing demands of Washington and Beijing. According to analysts, their most prudent course of action is often to cultivate stronger ties with both powers, hoping to maximize benefits from each.
Just in the past week, Mr. Trump finalized trade agreements with Thailand, Cambodia, Vietnam, and Malaysia. Simultaneously, China strengthened its own trade pact with a group of eleven Southeast Asian nations.
Stephen Olson, a former U.S. trade negotiator and a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, concluded, “It’s a question of Southeast Asian countries doing what they always do: Make whatever accommodations are needed to ensure robust relations with both the United States and China.”