With the Asia-Pacific Economic Cooperation (APEC) summit underway in Lima, the dialogue between the U.S. and China is heating up, drawing significant interest as both nations navigate uncertain political landscapes. Chinese President Xi Jinping is making headlines for his push for free trade during this meeting, amid the backdrop of Donald Trump's potential return to the presidency.
Xi Jinping's visit to Peru is part of broader diplomatic efforts aimed at strengthening China's influence across South America. He emphasized the importance of dismantling trade barriers and embracing economic cooperation, concepts ingrained within APEC's ethos. His call for free trade serves as a counterpoint to the rise of protectionist sentiments seen globally, particularly as Trump makes promises of adopting aggressive economic policies.
During the summit, Xi passionately articulated the need for open trade and investment, arguing these are pivotal to maintaining stable industrial supply chains and fostering technological exchanges. "The flow of trade must not be hindered by artificial barriers," he said, reinforcing China’s commitment to engage with its regional partners. His remarks are notable as they come at a time when many nations are reconsidering their economic alliances amid global shifts.
Meanwhile, the reassuring presence of Xi contrasts sharply with the uncertainty surrounding Trump's potential policy direction. The former president, poised to reclaim office as early as January 20, 2025, has previously threatened to impose hefty tariffs on Chinese imports—up to 60%—as part of his 'America First' strategy. Such measures, if enacted, could drastically reshape trade relationships within the APEC framework.
The backdrop to this tense dynamic is Xi's pivotal meeting with outgoing President Joe Biden, set for later during the summit. This will mark their first conversation since Biden assumed office seven months ago. Xi indicated China’s desire for sustained dialogue, acknowledging the ups and downs of U.S.-China relations. "China’s goal of maintaining a stable and cooperative relationship with the United States remains unchanged," he stated, hoping to set the stage for smoother dealings, regardless of the U.S. electoral outcome.
Trump has indicated he will fill his administration with individuals who hold hawkish views on China. The reported appointments of Senator Marco Rubio as Secretary of State and Representative Mike Waltz as National Security Adviser symbolize a shift toward tougher stances. This positioning could complicate efforts made by Xi to establish friendly ties with the next U.S. administration.
The conversation between Xi and Biden is expected to cover various contentious issues, including cybersecurity concerns, economic competition, and the status of Taiwan—a territory Beijing considers integral to its sovereignty. Recent tensions have intensified with accusations of Chinese cyber operations targeting U.S. government communications, raising alarms across the Biden administration.
On Taiwan's front, the island's leaders are moving strategically, with President Lai Ching-te set to transit through U.S. territories like Hawaii and potentially Guam, increasing regional tensions. Taiwan's former economy minister, on the sidelines of the summit, has already invited Biden for future visits, signaling the island's strong push for continued U.S. support.
China views Taiwan as part of its territory, and this sensitive issue remains just one of the flashpoints impacting American-Chinese relations. Meanwhile, Biden has expressed on several occasions the importance of addressing North Korea’s relationships with Russia, emphasizing multi-faceted cooperation as key to diplomatic stability.
The economic relations between China and the United States have grown fraught. Biden's administration is pursuing measures to curb U.S. investment in sensitive sectors like artificial intelligence and semiconductors, which could cripple China's technological ambitions. These actions are prompting concerns about the sustainability of China’s economy and its capacity to remain competitive on the global stage.
Expressing both caution and optimism, Xi highlighted the necessity of mutual respect between the two nations. "When we treat each other as partners and friends, we can set aside our differences and achieve mutual success,” he stated. The upcoming transition back to Trump’s administration amplifies the urgency felt by both leaders, who understand the stakes involved.
APEC leaders are increasingly wary of the impact Trump's policies might have on their economies. The summit presents opportunities for Xi to assert China’s commitment to multilateralism, presenting himself as the preferable partner against the backdrop of perceived American isolationism. His schedule includes meetings on significant collective agreements, including the revamped free trade accord with Peru and the inauguration of the Chancay deep-water port, aimed to facilitate increased trade between China and Latin America.
Overall, the political chessboard is fraught with challenges as Pacific Rim leaders assess the potential ramifications of Trump’s policies on the international stage. China's influence appears to be growing, which is evident as Xi's diplomatic offensive seeks to position Beijing favorably amid America's shifting priorities.
With all eyes on Lima, the APEC summit is not just about shared economic pursuits; it is about the future of U.S.-China relations, the strategic balance of power, and the overarching narrative of free trade versus protectionism. The world awaits to see what direction next year's political climate will take as both nations grapple with their oft-complicated ties.
