Chinese President Xi Jinping will dominate the spotlight at the Asia-Pacific Economic Cooperation (APEC) Summitin Gyeongju, South Korea, as he meets with Japanese and Canadian leaders following a tentative trade truce with U.S. President Donald Trump. The agreement pauses additional restrictions on China’s rare earth exports, easing global supply chain concerns and setting a more cooperative tone for the 21-member economic forum.
This year’s APEC discussions center on strengthening supply chains, fostering regional collaboration, and reducing trade barriers. However, achieving consensus remains challenging, with divisions among major economies and past failures to adopt joint declarations.
In a significant diplomatic moment, Xi will hold his first talks with Japan’s new Prime Minister Sanae Takaichi, Japan’s first female leader known for her nationalist and hawkish policies. Takaichi has prioritized bolstering Japan’s military defenses against China’s assertiveness. Ongoing disputes, including the detention of Japanese nationals in China and Beijing’s import restrictions on Japanese agricultural goods, are expected to surface during their talks.
Meanwhile, Canadian Prime Minister Mark Carney seeks to revive Canada-China relations after years of diplomatic friction. Carney’s meeting with Xi aims to diversify Canada’s trade partnerships amid strained U.S. ties. The two countries continue to clash over tariffs on canola and electric vehicles, but both sides recently resumed discussions to address trade barriers.
With Trump skipping the main summit, U.S. Treasury Secretary Scott Bessent represents Washington. South Korea’s Prime Minister Lee Jae Myung leads sessions emphasizing unity in the Asia-Pacific region, though doubts linger about producing a meaningful joint statement. As global economic fault lines deepen, Xi’s leadership and diplomatic balancing will be closely watched by the world’s policymakers and markets.