AP Gyeongju (South Korea)

Chinese leader Xi Jinping told Asia-Pacific leaders on Friday that his country would help to defend global free trade at an annual economic regional forum snubbed by US President Donald Trump.

Xi took centre stage at the Asia-Pacific Economic Cooperation summit that began on Friday in the South Korean city of Gyeongju, as Trump left the country a day earlier after reaching deals with Xi meant to ease their escalating trade war.

This year's two-day APEC summit has been heavily overshadowed by the Trump-Xi meeting that was arranged on the sidelines.  Trump's decision to skip APEC fits with his well-known disdain for big, multi-nation forums that have been traditionally used to address global problems. But his blunt dismissal of APEC risks worsening America's reputation at a forum that represents nearly 40 per cent of the world's population and more than half of global goods trade. 

Xi for multilateralism

"The more turbulent the times, the more we must work together," Xi said during APEC's opening session. "The world is undergoing a period of rapid change, with the international situation becoming increasingly complex and volatile." Xi called for maintaining supply chain stability, in a riposte to US efforts to decouple its supply chains from China.

Xi also expressed hopes to work with other countries to expand cooperation in green industries and clean energy. Chinese exports of its solar panels, electric vehicles and other green tech have been criticised for creating oversupplies and undercutting the domestic industries of countries it exports to.

It's Xi's first visit to South Korea in 11 years. On the sidelines of the summit, Xi had bilateral meetings with new Japanese Prime Minister Sanae Takaichi, Canadian Prime Minister Mark Carney and Thai Prime Minister Anutin Charnvirakul on Friday. Xi is to meet South Korean President Lee Jae Myung on Saturday for a meeting expected to discuss North Korea's nuclear programme. 

US Secretary of the Treasury Scott Bessent, who attended the summit on Trump's behalf, said a US move to rebalance its trade relationships would ensure that "each country operates on fair and reciprocal terms." He added that the US is "investing with its trading partners to build resilient production networks that reduce dependence on vulnerable sectors."

APEC faces challenges

Established in 1989 during a period of increased globalisation, APEC champions free and open trade and investment to accelerate regional economic integration. But the APEC region now faces challenges like strategic competitions between the US and China, supply chain vulnerabilities, ageing populations and the impact of AI on jobs. The US strategy has shifted to economic competition with China rather than cooperation, with Trump's tariff hikes and "America first" agenda shaking markets and threatening decades of globalisation and multinationalism.

Leaders and other representatives from 21 Asia-Pacific Rim economies are attending the APEC meeting to discuss how to promote economic cooperation and tackle shared challenges. Opening the summit as chair, Lee called for greater cooperation and solidarity to overcome new challenges. 

"It's obvious that we can't always stand on the same side, as our national interests are at stake. But we can join together for the ultimate goal of shared prosperity," Lee said.