IRIA News

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The Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru, marked a critical juncture for the 21 member economies representing two-thirds of the global GDP and half of the world’s trade. Against major global shifts, the summit featured closed-door discussions, bilateral meetings, and a robust agenda to foster inclusive economic growth and address geopolitical challenges.

As outgoing U.S. President Joe Biden participated in what is likely his final major summit, the world turned its attention to the policies and strategies that may emerge with the impending presidency of Donald Trump. Meanwhile, Chinese President Xi Jinping solidified his influence with strategic partnerships and initiatives, setting the stage for a complex realignment of global power dynamics.

The final communique from the APEC meeting reiterated calls for cooperation to boost trade and improve living standards. Australian Prime Minister Anthony Albanese highlighted Australia as a reliable trading partner committed to global trade and climate action. He emphasized APEC’s dedication to free and fair trade, as well as addressing climate challenges.

However, consensus on discussing the economic impacts of wars in Ukraine and the Middle East faltered, with China and Russia reportedly opposing such talks. Despite this, trade and climate change dominated discussions.

Inclusive growth and global challenges

Peru’s President Dina Boluarte opened the summit with a compelling address emphasizing the importance of inclusive growth. “Our objective is to level the playing field, providing all the necessary tools for inclusion in social, financial, and commercial spaces,” Boluarte said.

Peruvian President Boluarte highlighted the need to empower citizens, reduce informal labor, and foster equitable opportunities.

The summit’s discussions spanned a broad spectrum of issues, including:

Economic inclusion: Leaders emphasized the necessity of promoting small businesses, increasing access to financial systems, and reducing barriers to trade among member nations.

Climate action: APEC nations reaffirmed their commitment to tackling climate change, with many leaders echoing Biden’s push for more robust global infrastructure and environmentally sustainable development.

Global supply chain stability: The leaders underscored the urgency of protecting international free trade systems and stabilizing supply chains, a message resonating amidst global economic uncertainty.

Biden’s farewell summit

U.S. President Joe Biden approached the APEC summit with a clear intent to solidify his foreign policy legacy. With speeches and bilateral meetings, Biden emphasized the need to address emerging challenges amid changing global dynamics.

In his meeting with the host of the summit, President Dina Boluarte of Peru, Biden discussed U.S.-Peru cooperation in security and counternarcotics, economic investment and trade, and space collaboration.  He reiterated Washington’s commitment to support Peru’s counternarcotics capabilities through a $65 million security assistance package that includes the planned transfer of nine Black Hawk helicopters.

I met with the leaders of APEC today to reaffirm our commitment to building inclusive, resilient, and sustainable economies across the Asia-Pacific. pic.twitter.com/pgxZlusAqJ

— President Biden (@POTUS) November 16, 2024

Biden thanked President Boluarte for Peru’s close coordination on counternarcotics, including the decision to approve measures required to share radar information between the United States and Peru for the first time in a decade. President Biden also highlighted a California Caltrain donation of more than 100 locomotives to the city of Lima to promote cleaner transportation.  

At a meeting with Japan’s Prime Minister Shigeru Ishiba and South Korea’s President Yoon Suk Yeol, Biden reflected on the progress made during his presidency in fostering stronger ties between the two historically adversarial nations.

“I’m proud to have helped be one of the parts of building this partnership,” Biden said. He expressed hope that the cooperative framework among the U.S., Japan, and South Korea would anchor peace and stability in the Indo-Pacific region.

Despite Biden’s focus on unity and progress, his presence was overshadowed by speculation about the impending Trump presidency. Trump’s “America First” policies and threats to impose steep tariffs on Chinese goods loom large, raising concerns about potential disruptions to APEC’s long-standing ethos of multilateralism.

China’s Xi Jinping retains the spotlight

Chinese President Xi Jinping was among the first few leaders to arrive for the summit this year, with an agenda to expand China’s influence across the Pacific Rim. His inauguration of a $1.3 billion mega port in Peru underscored Beijing’s commitment to deepening economic ties in Latin America.

During bilateral meetings, Xi advanced his vision for cooperative and constructive relations. In a first-ever meeting with Japan’s Prime Minister Ishiba, Xi reaffirmed his commitment to stable ties despite escalating tensions over military activity in the region. Ishiba conveyed concerns about Chinese maneuvers but expressed a willingness to engage further diplomatically.

"Estamos unidos por el compromiso común de promover el crecimiento económico y la resiliencia en nuestra región. En este contexto, es importante destacar que APEC ha dado pasos significativos hacia esa visión al adoptar entregables claves", indicó la lider de la economía peruana,… pic.twitter.com/VSrlDqcpCH

— Presidencia del Perú 🇵🇪 (@presidenciaperu) November 16, 2024

Xi also met with South Korea’s Yoon, emphasizing cultural affinity and advocating for stronger collaboration to maintain regional stability. Beijing’s recent decision to grant visa-free travel to South Korean citizens further illustrates China’s efforts to counterbalance the growing U.S.-Japan-South Korea alliance.

Xi’s broader appeal for unity in safeguarding free trade and enhancing global supply chains resonated strongly, positioning him as a central figure in shaping APEC’s future.

Xi-Biden meeting

A key event on the sidelines of the summit was the meeting between the Chinese and U.S. presidents, marking their last bilateral interaction before Biden leaves the White House. Xi Jinping emphasized that “China’s goal of a stable, healthy and sustainable China-U.S. relationship remains unchanged,” despite the challenges in their ties. He acknowledged the “ups and downs” between the two nations, adding, “China is ready to work with the new U.S. administration to maintain communication, expand cooperation and manage differences.”

According to a White House statement, President Biden underscored that U.S. investment in sources of strength at home and alignment with partners and allies around the world have been central to his Administration’s foreign policy approach.  He welcomed efforts to maintain open channels of communication with the PRC to manage competition responsibly and prevent it from veering into conflict or confrontation.

The talks occurred just two months before Trump is set to take office. The president-elect has promised to take strong actions to diminish China’s increasing global economic influence. Trump also plans to appoint several individuals known for their tough stance on China to senior roles, such as U.S. Senator Marco Rubio as Secretary of State and Representative Mike Waltz as National Security Adviser.

While Biden has sought to ease tensions with China, Washington remains deeply concerned about a recent China-linked hack targeting the communications of U.S. government and presidential campaign officials. Additional worries include Beijing’s escalating pressure on Taiwan and its support for Russia.

Taiwanese President Lai Ching-te is preparing for a sensitive visit to the U.S., potentially stopping in Hawaii and Guam, which is expected to provoke Beijing, according to Reuters. Concurrently, Taiwan’s former economy minister Lin Hsin-i met with Biden at the summit and extended an invitation for him to visit Taiwan shortly.

“Make the wise choice,” Xi urged during the meeting at the hotel in Lima where the Chinese delegation was staying. “Keep exploring the right way for two major countries to get along well with each other.”

Biden emphasized the importance of maintaining dialogue. “These conversations prevent miscalculations, and they ensure the competition between our two countries will not veer into conflict, be competition, not conflict,” he said.

“That’s our responsibility, and over the last four years I think we’ve proven it’s possible to have this relationship.” The meeting, which lasted 1 hour and 40 minutes, was both conciliatory and confrontational.

The two leaders also exchanged views on key regional and global challenges. Biden condemned the deployment of thousands of DPRK troops to Russia, a dangerous expansion of Russia’s unlawful war against Ukraine with serious consequences for both European and Indo-Pacific peace and security.

Despite efforts to improve relations, Biden’s administration has maintained a firm stance on issues like Taiwan. Jake Sullivan, Biden’s national security adviser, highlighted the need for continued vigilance. “The incoming administration is going to have to focus on that right out of the gate,” he said.

Building on their previous interactions, the two leaders stressed the importance of responsibly managing competitive aspects of the relationship, preventing conflict, maintaining open lines of communication, cooperating on areas of shared interest, upholding the UN Charter, and all countries treating each other with respect and finding a way to live alongside each other peacefully.