Chinese President Xi Jinping has called for stronger unity and cooperation among Asia-Pacific economies to counter the rising tide of global protectionism. Addressing leaders at the Asia-Pacific Economic Cooperation (APEC) summit on Saturday, Xi warned of the dangers posed by “geopolitics, unilateralism, and rising protectionism,” urging member economies to reinforce multilateralism and regional integration.
The meeting, held in the Peruvian capital Lima, comes at a critical juncture in global trade dynamics, with key players reassessing their economic strategies amid a backdrop of mounting geopolitical tensions and economic uncertainties.
In his remarks, Xi emphasized the importance of collaboration among APEC economies to combat shared challenges. “We must unite and cooperate,” Xi said, according to the Chinese state broadcaster CCTV. His comments underscored China’s long-standing advocacy for open markets and multilateral trade mechanisms in contrast to rising protectionist policies around the world.
Xi also reiterated his support for an Asia-Pacific free trade area, a concept that has been under discussion for years but remains in the exploratory stages. He stressed that Beijing is prepared to engage in negotiations around emerging sectors, particularly digital and green trade agreements.
Highlighting the importance of innovation, Xi called for greater collaboration in cutting-edge technologies, including artificial intelligence and quantum information. “We should seize opportunities in these frontier fields,” he remarked, positioning China as a leader in driving technological advancements within the region.
Xi’s appeal for cooperation came just hours before a scheduled meeting with U.S. President Joe Biden. The bilateral talks are seen as a pivotal moment for China-U.S. relations, particularly as they come two months ahead of Republican President-elect Donald Trump’s return to the White House in January.
Trump’s anticipated presidency has reignited concerns over trade frictions between the world’s two largest economies. During his first term, Trump initiated a trade war with China, imposing steep tariffs on Chinese goods. This time, his campaign rhetoric has included proposals for across-the-board tariffs on imports, with China as a primary target.
Against this backdrop, Xi’s remarks at APEC appear aimed at bolstering multilateral trade alliances as a counterweight to potential isolationist policies from Washington.
While advocating for global cooperation, Xi also faces significant challenges at home. China’s economy, the second-largest in the world, has been navigating a series of structural issues, including a prolonged housing crisis, sluggish consumer demand, and mounting local government debt.
Despite these headwinds, Beijing has set an ambitious target of around 5% annual growth for 2024. Analysts, however, remain skeptical about the feasibility of achieving this goal without substantial economic reforms and stimulus measures.
Xi’s remarks on Friday at the APEC CEO Summit reflected this delicate balancing act. He criticized attempts to reduce global economic interdependence, calling such moves “nothing but backpedaling.” He also framed economic globalization as an irreversible trend, asserting that collaboration rather than fragmentation is the key to sustainable growth.
Xi’s focus on protectionism aligns with broader concerns among APEC economies. The region, which accounts for nearly 60% of global GDP, is increasingly grappling with trade barriers and geopolitical rivalries that threaten its interconnected supply chains.
APEC’s diverse membership includes countries with vastly different economic systems, from advanced economies like the United States and Japan to emerging markets like Vietnam and Peru. Xi’s emphasis on unity resonates particularly with smaller economies, which are disproportionately affected by trade wars and protectionist policies.
However, achieving consensus on issues such as trade liberalization and technological cooperation is no small feat. The longstanding goal of creating an Asia-Pacific Free Trade Area (FTAAP) has faced numerous obstacles, including differing priorities among member states and competing regional trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
As China prepares to host APEC in 2026, Xi’s remarks signal a strategic push to shape the organization’s agenda around Beijing’s priorities. By championing initiatives in digital trade, green technology, and innovation, China aims to position itself as a leader in addressing the region’s evolving economic challenges.
Yet, this vision is not without its critics. Skepticism about China’s trade practices and concerns over its economic coercion have led some APEC members to advocate for stronger safeguards against market distortions.
In the short term, much depends on how China navigates its domestic economic recovery while maintaining its leadership role in regional cooperation. For APEC, the task ahead lies in reconciling competing interests to build a resilient and inclusive economic framework.
- Unity Against Protectionism: Xi called for collective action to counter unilateralism and trade barriers, advocating for a shared commitment to multilateralism.
- Focus on Innovation: China seeks to spearhead cooperation in emerging technologies like AI and quantum computing.
- Push for Regional Integration: Efforts to establish an Asia-Pacific free trade area and digital/green trade agreements remain central to China’s agenda.
- Economic Headwinds at Home: Xi’s push for cooperation comes against the backdrop of significant domestic economic challenges.
