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Sculptures seen on the street before the 31st Asia-Pacific Economic Cooperation Economic Leaders' Meeting on Nov. 12, 2024 in Lima, Peru.
Viewpoint: What to expect from this year’s APEC
Global leaders are descending upon Peru this week for the 2024 Asia-Pacific Economic Cooperation Forum amid an increasingly conflict-ridden world — and just a week after American voters reelected Donald Trump to the US presidency. The year’s meetings are focused on critical economic and environmental challenges, as well as the need to bolster bilateral and multilateral ties in the Asia-Pacific region. With outgoing President Joe Biden meeting up with Chinese President Xi Jinping at APEC, GZERO reached out to Eurasia Group expert Gabriela Vasquez Madueno for her take on what to watch at the event.
What is APEC, and why does it matter?
The Asia-Pacific Economic Cooperation, a forum of 21 economies from across the Pacific Rim focused on promoting sustainable economic growth, trade, and investment in the region, is convening its Leaders’ Meeting this week in Peru. The gathering brings together economies that represent nearly 40% of the world’s population, almost half of global trade, and approximately 60% of global GDP.
While APEC’s formal economic impact remains limited, it is still significant as a platform for diplomatic engagement and bilateral and multilateral cooperation. It provides space for growing economies such as Indonesia and Mexico and major powers like the United States and China to engage and collaborate on issues ranging from climate change and sustainable development to the digital economy.
APEC takes a consensus-based approach, which means all members have an equal voice, and it relies on voluntary commitments and capacity building – rather than treaties – to achieve its goals. So, again, its impact remains limited. APEC, however, is a useful forum to build consensus on topics that may, in the future, become binding commitments in other fora or in trade agreements. It’s also worth noting that APEC is one of few multilateral forums, apart from the WTO, where Taiwan is recognized as a separate economy. This unique status allows Taiwan to participate in global economic discussions and engage with other member economies, including China.
What are the themes for this year’s APEC meetings?
This year’s theme, “People, Business, Prosperity,” focuses on finding innovative solutions to the region’s most pressing challenges. Resilient growth has been a priority. The summit this week aims to promote inclusive and interconnected growth, address the informal economy by utilizing digital platforms for better economic integration, and prioritize resilient growth in the face of global challenges like climate change and food security.
Members are working to facilitate trade and investment in the region by contributing to the development of the Free Trade Area of the Asia-Pacific agenda. They have also defined low-carbon hydrogen policy frameworks to support regional energy transitions and initiatives to prevent and reduce food loss and waste. Participants are putting forward several initiatives to promote sustainable and resilient finance, as well as an exchange of policies aimed at utilizing digital platforms to integrate the informal economy and boost economic integration.
What are the main challenges of APEC?
The recent US election and the pending potential shift in foreign policy under Donald Trump has cast a long shadow on proceedings this week. As such, the US has taken a less active role in the present APEC event, as the next administration will prioritize bilateral discussions over multilateral ones. There will be little room for further integration considering the change of administration, as it is believed the Trump administration will prefer negotiating directly with individual states, rather than working through regional groups. Also, Trump’s threat of tariffs will cause APEC economies to fret.
This future shift creates uncertainties within the forum and potentially undermines its effectiveness in the coming years.
Additionally, the growing geopolitical rivalry between the US and China further complicates discussions and potentially impacts the overall agenda. Other member economies are finding themselves caught in the middle, forced to navigate the competing interests of these two major powers. Beijing, for its part, will use the summit to build its attraction among non-US member countries, some of which are feeling anxious about a Trump presidency, by offering unilateral concessions over tariffs and visas, among other measures.
So this event is a crucial test of the prospects for regional cooperation and global economic stability given today’s geopolitical tensions.
What to watch from this year’s APEC
The 2024 APEC Economic Leaders' Week is hosting several significant bilateral and multilateral meetings. Key leaders, including US President Joe Biden and Chinese President Xi Jinping, are going to be on hand for the event. Biden and Xi are set to meet at APEC, a White House source said Wednesday, and both men will then head to Brazil for the Group of 20 summit.
Xi’s inauguration of the $3.5 billion Chancay port – the largest project China has invested in Latin America in recent years – during his visit to Peru reflects China’s presence in the region. This poses a challenge for the White House in South America, where China's geopolitical influence has continued to grow. Xi, with Trump 2.0 looming, will likely emphasize Beijing’s ability to serve as the region’s free-trade champ, presenting China as a counterweight to the tariff controls being threatened by Trump.
All eyes will be on any potential meetings or informal conversations between US and Taiwanese officials, particularly between US President Joe Biden and high-level representatives from Taiwan, such as the head of TSMC.
In addition to political leaders, several prominent CEOs are in attendance at APEC. These include Jamie Dimon of JPMorgan Chase, Karan Bhatia of Google, and Shou Zi Chew of TikTok. The latter’s presence is particularly interesting given the ongoing risk of being federally banned in the US because of its resistance to selling itself.
We’ll be watching for any major developments or announcements from APEC – and for signs of the forum’s potential strength in the years to come.
Japan’s new PM: What to expect
Ian Bremmer shares his insights on global politics this week on World In :60.
Will there be political fallout in the aftermath of Hurricane Helene?
Lots of fallout for the lives and livelihoods of the people of the Carolinas and elsewhere, but the biggest damage is in both rural areas that largely vote "red" and urban areas that largely vote "blue." And frankly, that's a wash. Horrible morbid pun there, but the reality, I don't think it's going to be much impact come November.
What were the big takeaways from President Xi's speech celebrating the 75th anniversary of the People's Republic of China?
Well, first of all, very interesting. He didn't mention trade war, didn't mention the United States or other potential adversaries on the economic, technological military front by name. Did mention Taiwan, talked about the need to end the separatists and reunify, but nothing new there compared to other statements that he and other leaders have made. I would say the most important thing he talked about are the expectations of serious challenges going forward for the Chinese people. This is coming from a leader who is starting to move towards stimulus as opposed to just sort of incremental responses to economic challenges. A recognition that if they want to hit anywhere close to the 5% plus growth they want, they're going to need to do a lot from the fiscal side as the government. But he's messaging that this is going to be a hard time and it's structural. It's not a matter of a few months, it's a matter of years. And especially with the politics around the world and in the United States not working so well for China right now, that's a message that I think was more for domestic consumption than for international.
Finally, as Japan's new Prime Minister assembles his government, how will he set himself apart from former PM, Kishida?
Well, he's not a "pro-Abenomics" guy. This is someone that I think is going to be challenging from a market perspective. He's going to be fiscally very cautious. He's going to look to raise more revenue, and he's not really loved by the business community. It was the fifth time he tried to become Prime Minister, the former Minister of Defense. Fifth time's the charm apparently in the LDP. I'm not so concerned about potential changes on the international front. He's talked about an "Asian NATO" which is kind of a non-starter from the perspective of the United States. He does want joint control of bases in Okinawa,. That's changed the status quo. But ultimately, if the US pushes back, he'll accept that. The interesting thing about Japan is it's basically a single-party democracy. The Liberal Democratic Party really runs the show. They have an absolute majority in the Diet. They're likely to continue that after snap elections coming up real soon. And so it's really a question of which of the various factions inside that party who largely agree on worldview and on domestic policies ends up running the government. And this time around it is the former Minister of Defense.
- Hard Numbers: Helene hits hard, Zuckerberg enters the big leagues, US strikes Islamic State in Syria, Majority of Argentines live in poverty ›
- Biden and Kishida bromance is meant to make Xi sweat ›
- Viewpoint: How Abe still casts a shadow over Kishida in Japan ›
- Viewpoint: Kishida makes way for fresh face as his party's fortunes fade in Japan ›
Ian Explains: Will China invade Taiwan?
President Xi Jinping has made it clear he wants to bring Taiwan under Chinese control. But how would he actually send troops to the island? And after watching Russia get bogged down in two years of grinding war in Ukraine, has his calculus changed? On Ian Explains, Ian Bremmer lays out Xi’s strategies for achieving his primary political goal: reunification with Taiwan.
Overall, the chances of an all-out Chinese invasion are slim to none. It would be a huge political and military risk for China, and its economy can’t afford the hit of global sanctions. Beijing is also deeply dependent on Taiwan for its technology infrastructure: Taiwan’s TSMC manufactures more than half of the world’s computer chips that power things like phones and electric cars. But Taiwan’s economy is also dependent on China, its largest trading partner. So Xi could still apply plenty of pressure without sending a single troop to the island. Will Xi try to solve his “Taiwan problem” before he leaves office?
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
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U.S. National Security Advisor Jake Sullivan meets Chinese President Xi Jinping at the Great Hall of the People in Beijing, China August 29, 2024.
Sullivan trip sets up Biden-Xi call
Chinese President Xi Jinping struck a conciliatory tone when he met with US national security adviser Jake Sullivan on Thursday, after three days of talks aimed at managing tensions in the US-China relationship. Sitting in the Great Hall of the People on Tiananmen Square in Beijing, Xi said, “In this changing and turbulent world, countries need solidarity and coordination … not exclusion or regress.” Their meeting was the culmination of efforts to communicate thoroughly over points of potential conflict, including Taiwan, Ukraine, and the South China Sea.
Sullivan also met with the vice chair of China’s Central Military Commission, Zhang Youxia,the highest-ranking military official to have sat down with the Biden administration. Zhang accused the US of “collusion” with Taiwan, but the meeting produced an agreement to conduct more bilateral military talks, which it is hoped will help avoid surprises and escalation.
There was one topic Sullivan explicitly said was not discussed: the US election. As we wrote earlier this week, Beijing was thrown for a loop by President Joe Biden’s withdrawal from the Democratic ticket and seems to be taking a wait-and-see approach. Both sides agreed to work toward a Biden-Xi phone call in the coming weeks, and Sullivan indicated the White House is ready for a face-to-face meeting at the G20 summit in November as well.Chinese President Xi Jinping and Philippine President Ferdinand Marcos Jr review the honour guard during a welcome ceremony at the Great Hall of the People in Beijing, China January 4, 2023
Can a hotline prevent war in South China Sea?
I know when that hotline bling, that can only mean one thing: Beijing and Manila are beefing over uninhabitable rocks again. China and the Philippines have reportedly set up a bilateral hotline meant to help them avoid a deadly incident in the disputed South China Sea.
The effort to improve communications follows a particularly violentconfrontation on June 17, when Chinese sailors surrounded and boarded Filipino vessels wielding bladed weapons. One Filipino sailor lost his finger, and the fear is that should someone lose their life, Manila could activate its mutual defense treaty with the United States.
The Biden administration has struck a nuanced position, assuring Manila that it would honor the treaty fully while also attempting to signal to China that they aren’t handing out carte blanche to the Philippines. Eurasia Group’s Jeremy Chan says proactive communication after the June 17 incident has helped lower the temperature.
“Beijing interpreted the June 28 call between Deputy Secretary of State Kurt Campbell and China's Vice Foreign Minister Ma Zhaoxu in particular as a clear signal that Washington does not support Manila in pushing its territorial claims too aggressively,” he said.
Being able to quickly pick up the phone and talk through future incidents is a useful pressure release valve, but longer term, the South China Sea and the shoals used to mark de facto control will remain a tension point. We are watching how it will affect US and Chinese efforts to stabilize their own relationship.
China’s foreign ministry on Thursday warned NATO not to bring “chaos” into Asia and accused the alliance of seeking security at the expense of other countries after it labeled Beijing a “decisive enabler” of Russia’s war on Ukraine.
China tells NATO to butt out
China’s foreign ministry on Thursday warned NATO not to bring “chaos” into Asia and accused the alliance of seeking security at the expense of other countries after it labeled Beijing a “decisive enabler” of Russia’s war on Ukraine. The foreign ministry’s comments come amid increasing cooperation between NATO and US allies in the Pacific, particularly Japan, South Korea, and the Philippines.
Washington and its allies accuse China of helping Russia skirt arms controls by shipping so-called “dual use” goods that can be applied in both civilian and military contexts. In turn, China gets access to heavily discounted Russian oil and gas — a desirable asset at any time, but advantageous for China’s economy at a moment when it appears particularly shaky.
At home, however, Beijing has signaled not to expect “strong medicine” to boost the economy at next week’s upcoming Third Party Plenum, scheduled for July 15-18 behind closed doors.
These meetings are closely watched because past leaders have used them to deliver big news. Deng Xiaoping announced the earth-shaking “Opening and Reform” policy, for example, at the 1978 session.
Xi Jinping isn’t expected to announce any major policy shifts, according to experts at Eurasia Group. So we’ll be watching for language intended to boost consumer confidence battered by the roiling debt crisis, but little by way of decisive policy.Russian President Vladimir Putin (R) shakes hands with Chinese President Xi Jinping during a meeting in Ufa, Russia, July 8, 2015. Vladimir Putin and Xi Jinping will attend the Shanghai Cooperation Organization (SCO) and the BRICS summits.
Russian dependence on China deepens
In public, there are “no limits” to the old and dear friendship between China’s Xi Jinping and Russia’s Vladimir Putin, two leaders with a common distaste for an international system dominated by Western-led political and economic institutions. But China’s economy and population were 10 times the size of Russia’s before Russia invaded Ukraine, and the mess that war has created for Putin leaves Moscow even more deeply dependent on Beijing.
That’s the clearest explanation for the failure (so far) of China and Russia to agree on a plan to build the “Power of Siberia 2” gas pipeline, a project that would deepen their economic interdependence. Aware the Ukraine war has cost Russia its European energy customers, according to a new report in the Financial Times, China is reportedly demanding a price per unit of Russian gas that’s even more steeply discounted than the price China already pays for it, which is less than half the price Europe paid before the invasion. China is also refusing to commit to purchase more than a small fraction of the pipeline’s capacity.
The two sides may one day agree on a deal to build this pipeline. But the terms of that agreement will reflect the reality that Russia’s near-term need for cash is far greater and more urgent than China’s immediate need for Russian gas.
North Macedonia's EU membership bid complicated by new nationalist government
Carl Bildt, former prime minister of Sweden, shares his perspective on European politics from Arizona, US.
What's the outcome and the likely result of the North Macedonia parliamentary election?
A new government, more nationalist, more rightists coming in. And the problem with that is that North Macedonia has made a number of concessions in order to make its EU path possible. First concessions through Greece in terms of the names and the number of concessions through France and a number of concessions through Bulgaria on minority and related issues. And the new government has got to say no to a lot of these things. And that further complicates the EU process, which is highly regrettable because the country in substance really deserves to move forward on that process.
What was the result of Xi Jinping's much celebrated tour of Europe?
Well, the tour was really restricted to France, where he had the usual talks with President Macron and I think Macron was an alliance, was an alliance had the right words concerning what China is doing in terms of supporting Ukraine, which is supporting Russia in its war against Ukraine, which is creating problems in the relationship to Europe, whether it's sorted out any of the economic issues remains to be seen. And then, of course, he went on to Serbia and to Hungary, which are much more China-friendly countries and much publicity and new agreements of different sorts. But if you to talk about the overall relationship between China and Europe, the European Union, I don't think much was changed by this particular trip.