Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
The Asia Pacific Economic Cooperation (APEC) summit ended in discord yesterday, with the group failing to issue a joint declaration for the first time in its history.
The failure to reach a consensus highlights the unprecedented strain on the global trade order, with US-China tensions at the crux of the impasse, Reuters reports.
It is believed that China and the US could not agree on draft wording referring to the WTO and “unfair trade practices,” with the Chinese delegation perceiving it as an attack on Beijing.
For the first time since the summit’s founding in 1993, no joint communique was released, with a statement from APEC chair, Papua New Guinea’s Prime Minister Peter O’Neill, issued instead.
The fractures emerging in APEC reflect the broader struggle for supremacy in the Asia Pacific between the US and China, with the Belt and Road Initiative and the militarisation of the South China Sea both points of contention.
A combative tone was set when Chinese President Xi Jinping and US Vice President Mike Pence traded barbs over their respective visions for the region, with Xi lashing out at the ‘America First’ policy, describing it as “doomed to fail,” and doubling down on the benefits of the Belt and Road Initiative (BRI), according to Channel News Asia.
Pence hit out at the BRI, which he branded a “constricting belt,” and raised concerns over the financial burden of the programme for some countries. “We don’t drown our partners in a sea of debt,” he said.
The BRI, which has come under increasing criticism this year over debt concerns among emerging economies, proved one of the flashpoints of the summit. President Xi met with APEC leaders to shore up support for the project, which was followed by a ‘coordinated response’ from key US allies, Reuters reports. New Zealand and Japan joined with the US to pledge a US$1.7 billion plan to improve infrastructure and digital connectivity in Papua New Guinea, highlighting an attempt to compete with the BRI to win influence in the region.
This is the new political reality for the Asia Pacific: if China and the US fail to reconcile their differences, governments will be under increasing pressure to pick sides.
The dramatic shifts in Asia and beyond as trade tensions continue, and the politics of the Belt and Road, will be explored at Asia House’s conference in Singapore this Thursday (22 November). The conference is free to attend but registration is required. Register now.
