The 30th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting took place in San Francisco, bringing together leaders from the Asia-Pacific region to discuss economic cooperation and regional integration. While the summit primarily focused on economic and environmental challenges, it also highlighted the intensified rivalry between the United States and China.
President Yoon Suk Yeol attended his first APEC meeting and secured $1.2 billion in investments from US companies. Three out of four pillars of the Indo-Pacific Economic Framework for Prosperity (IPEF) agreement were concluded. Yoon also had sideline meetings with Japan's Prime Minister Fumio Kishida and briefly met with China's Xi Jinping.
South Korean President Yoon Suk Yeol met with Japanese Prime Minister Fumio Kishida to discuss bilateral cooperation, showcasing the effectiveness of the South Korea-U.S.-Japan coalition. However, the trilateral meeting between South Korea, the U.S., and Japan mainly aimed to share updates on previous agreements, with limited discussion on security issues.
The summit demonstrated the continued confrontation between the U.S., its allies, and China, as both countries compete to shape the international system. President Biden and President Xi agreed to resume military communication to prevent conflicts, indicating a cautious approach to managing tensions. China seeks to construct a new order in the international system, while the U.S. remains committed to competing with China.
Seoul recognizes the importance of Beijing's support for its policy toward North Korea. Additionally, North Korea and Russia signed a protocol to expand bilateral cooperation, potentially demonstrating Russia's backing if North Korea successfully launches a military reconnaissance satellite.
The APEC summit resulted in agreements on military communication, fentanyl control, climate change, and high-level meetings. The U.S. and China committed to resuming talks between theater commanders to address rising concerns in the South China Sea and Taiwan Strait. China pledged to regulate the export of components essential for manufacturing fentanyl. However, unresolved conflicts remain, such as technology and tensions in the Taiwan Strait. The leaders discussed the potential and dangers of artificial intelligence but failed to establish a platform to address its regulation. The U.S. maintained export restrictions on advanced computer chips, contested by China.
The summit also addressed global conflicts, with divergent views on the Ukraine and Gaza conflicts. APEC members reaffirmed their commitment to a free, open, fair, and predictable trade and investment environment. Efforts to reform the World Trade Organization (WTO) are expected at the 13th Ministerial Conference. The summit also focused on the digital economy and shaping rules governing it.
The APEC Summit in San Francisco resulted in key takeaways and outcomes that will impact businesses worldwide. The Indo-Pacific Economic Framework for Prosperity (IPEF) was discussed, aiming to drive nations to the top on standards, transparency, inclusivity, and innovation. The IPEF includes agreements to facilitate high-standard trade and investment, advance workers' rights, and address issues like vulnerable supply chains and corruption. The APEC nations have unprecedented connectivity, which presents both benefits and challenges. Collaboration and working together will be crucial in overcoming economic, social, and geopolitical uncertainties. Businesses can play a role in closing societal gaps by creating workplaces that bring people together and using digital tools to reach young people. President Biden announced three groundbreaking agreements with IPEF partners, including the IPEF Supply Chain Agreement, the Clean Economy Agreement, and the Fair Economy Agreement. These agreements promote supply chain diversification, accelerate the transition to cleaner economies, combat corruption, and improve tax transparency. The summit also saw more than $50 billion in investments in APEC country economies, including digital connectivity, increased flights, and a manufacturing facility for drugs. The outcomes of the summit will benefit Main Streets across America and provide lessons for adapting businesses for the future.
Sources:
- [JURIST](https://www.jurist.org/news/2023/11/california-dispatch-us-china-relationship-dominated-apec-summit-beset-by-multiple-diplomatic-policy-challenges/)
- [Asia-Pacific Economic Cooperation (APEC)](https://www.apec.org/Meeting-Papers/Leaders-Declarations/2023/2023_aelm)
- [Forbes](https://www.forbes.com/sites/rhettbuttle/2023/12/01/more-than-pandas-5-takeaways-for-business-from-the-apec-summit/)