APEC Leaders Stress Trade Resilience Amid Rising Global Tensions

Facing growing fractures in global trade, Asia-Pacific leaders concluded the annual APEC summit in South Korea by adopting a declaration focused on building resilience and shared benefits in trade. The meeting took place amid intensifying geopolitical tensions and shifting economic strategies — from U.S. tariffs to China’s export restrictions — that continue to reshape global commerce.

Ahead of the summit, U.S. President Donald Trump announced trade agreements with several nations, including China and South Korea, but departed before the event began. His administration’s stance was still reflected in the final declaration, which notably omitted mentions of multilateralism and the World Trade Organization. According to Heo Yoon, professor of international trade at Sogang University, the omission signals a recognition that restoring the old free-trade order under the WTO is increasingly difficult, marking a paradigm shift in global trade.

China, stepping into the leadership void left by Trump’s absence, positioned itself as a champion of open trade. President Xi Jinping announced that China will host APEC in Shenzhen in 2026 and proposed creating a World Artificial Intelligence Cooperation Organization. The summit also produced declarations on demographic shifts and AI, though without specific regulations. Analysts noted that Beijing is leveraging the moment to reassure countries like South Korea of its commitment to mutual growth, not dominance.

During his three-day visit, Xi met with South Korean President Lee Jae Myung, who seeks to balance ties between Washington and Beijing while protecting South Korea’s export-driven economy. The two leaders discussed regional stability, including North Korea’s nuclear ambitions, which Pyongyang dismissed as an unrealistic “pipe dream.” Meanwhile, Trump and Xi agreed to lower U.S. tariffs in exchange for China’s crackdown on fentanyl trade and renewed agricultural cooperation.