President Joe Biden is set to lead the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, welcoming leaders from 20 member economies, including Chinese President Xi Jinping. This marks a significant diplomatic event as it provides a unique opportunity for the leaders of the world’s two largest economies to engage amid escalating tensions.
The APEC forum, conceived three decades ago, initially aimed to foster robust trade and cooperation across the Pacific Rim. However, with the Biden administration pushing only a limited economic pact and increasing sanctions against China, the summit reflects the changing dynamics of global relations.
The Biden-Xi meeting, scheduled for Wednesday, is expected to address a wide range of disagreements, including sensitive issues like Taiwan. With Taiwan’s elections approaching in two months, tensions could rise, as Beijing claims sovereignty over the self-ruling democracy and has not ruled out using force to reclaim it.
A senior US official expressed hope that the meeting would “open up new lines of communication” between the two leaders. Restoring contact between the US and Chinese militaries is considered crucial, especially in managing potential crises such as those involving Taiwan.
Despite the summit’s broader agenda, the meeting between Biden and Xi is likely to be a focal point, potentially overshadowing other discussions. While APEC risks becoming a sideshow for other leaders, many countries in the region prefer a stable US-China relationship, given their deep economic inter-linkages with China.
Notably absent from the summit is Russian President Vladimir Putin, as the United States has shunned Russia over its invasion of Ukraine. Deputy Prime Minister Alexei Overchuk will represent Moscow, marking the highest-level Russian visitor to the United States since the conflict began.
Biden, keen on emphasizing alliances, has focused on strengthening ties with allies. APEC will see the participation of leaders from key US allies, including Australian Prime Minister Anthony Albanese, Japanese Prime Minister Fumio Kishida, and South Korean President Yoon Suk Yeol.
The Biden administration, in contrast to its approach with China, has sought to isolate Russia. This summit is part of the broader US strategy to engage allies in pushing back against efforts to undermine international rules and norms.
As the United States competes with China for influence, Biden will also welcome outgoing Indonesian President Joko Widodo, seeking to secure access to the archipelago’s vast nickel reserves crucial for electric cars.
While APEC provides a platform for discussions on economic issues, the ongoing Israel-Hamas conflict is expected to feature prominently, affecting countries like Indonesia and Malaysia. The summit uniquely includes both China and Taiwan, represented by business figure Morris Chang, a key player in Taiwan’s semiconductor industry.
The US has moved away from traditional free-trade deals, with Biden introducing the Indo-Pacific Economic Framework for Prosperity (IPEF). This framework, not focused on market access, aims to facilitate business across 14 countries, excluding China. Negotiations on IPEF components, including supply chains, trade, and clean energy, may see conclusions during the APEC summit.
The meeting between Biden and Xi will be closely watched for signs of diplomatic progress amid an increasingly complex global landscape.