17 Nov 2023

APEC: What you need to know

9:18 pm on 17 November 2023
US President Joe Biden and Chinese President Xi Jinping walk together after a meeting during the Asia-Pacific Economic Cooperation (APEC) Leaders' week in Woodside, California on November 15, 2023.

US President Joe Biden and Chinese President Xi Jinping walk together after a meeting during the Asia-Pacific Economic Cooperation (APEC) Leaders' week in Woodside, California. Photo: BRENDAN SMIALOWSKI/ AFP

Damien O'Connor is in the hot seat representing New Zealand at APEC in San Francisco, because a government has not yet formed.

What else is happening?

Here's what you need to know.

Xi and Biden met

The meeting on the sidelines of APEC between the two most powerful leaders in the world grabbed most of the headlines. BBC has put together a list of what we learned from the meeting.

The full report is here and this is a summary:

There was common ground on climate

World Leaders meet during the Asia-Pacific Economic Cooperation (APEC) Leaders' Informal Dialogue with Guests during APEC Leaders' Week at Moscone Center on November 16, 2023 in San Francisco, California.

The World Leaders meeting at APEC in California. Photo: KENT NISHIMURA/ AFP

BBC writes: The two countries, which are the world's biggest carbon emitters, agreed on further measures to tackle climate change, but stopped short of committing to end the use of fossil fuels.

They promised to co-operate to slow methane emissions - a particularly potent greenhouse gas - and support global efforts to triple renewable energy by 2030.

Experts told BBC these are noteworthy developments before the major climate change conference, COP28, in Dubai later this month.

"It's small, but important steps on climate change," said Bernice Lee, an expert on China and a fellow at UK think tank Chatham House.

David Waskow, from the World Resources Institute, called the methane agreement a "major step".

Military talks will resume after a tense period

China and the US agreed to resume military-to-military communication - a step that was high on the Americans' wish list.

The military links were cut by China last year, after then-US House of Representatives Speaker Nancy Pelosi visited Taiwan.

BBC North America correspondent John Sudworth - who reported from China for a decade - pointed out there were already signs of a thaw before Wednesday's meeting.

Last week, for the first time in years, the two sides met in Washington for discussions about their nuclear arsenals.

The two presidents also had substantial discussions about Taiwan on Wednesday. Xi told his American counterpart that he should "stop arming Taiwan" and that China's reunification with the island was "unstoppable", according to China's foreign ministry.

Talks will continue - and that is a good thing.

While there were several specific points of agreement, the mere fact that a meeting happened - and that Biden and Xi shook hands - is a positive sign, according to the BBC's North America editor Sarah Smith.

Having two of the most powerful presidents in the world speaking to each other is a diplomatic achievement in itself. If they can agree to keep in touch, that alone could be considered a success.

As the meeting began, Biden told Xi: "I value our conversation because I think it's paramount that you and I understand each other clearly, leader to leader, with no misconceptions or miscommunication".

The Chinese leader agreed. "Conflict and confrontation has unbearable consequences for both sides," he said.

The two countries are still far apart on many issues. While agreeing to disagree peacefully is a start, some observers warned against overly optimistic predictions.

"The last four months have seen a truly remarkable improvement in communications between Washington and Beijing," said Dimitar Gueorguiev, director of Chinese studies at Syracuse University.

"Much of that was directly tied to this Apec meeting, however... we should not assume that the positive momentum can or will be sustained."

That progress did not stop Biden calling Xi a "dictator" for the second time this year, when asked by a reporter if he still held that view.

And pandas?

Male giant panda Xiao Qi Ji eats a frozen fruit cake in his enclosure during a 'Panda Palooza' event at the Smithsonian National Zoo on September 23, 2023 in Washington, DC.

Male giant panda Xiao Qi Ji during a 'Panda Palooza' event at the Smithsonian National Zoo in Washington in September. Photo: ANNA MONEYMAKER/AFP

Yes, pandas. They have traditionally been a symbol of good relations between China and a country receiving them. Xi referred to them as "envoys" of good will.

Now, panda diplomacy could be back for China and the US.

The White House said it would welcome any giant pandas China wants to send.

Washington's Smithsonian National Zoo bid a tearful farewell to its beloved trio of giant pandas last week as the long-serving goodwill ambassadors began a journey back to China that was announced earlier this year.

Xi noted their departure in a speech to American business leaders on the sidelines of APEC. He noted how people were reluctant to see them go, and seemed to hint that pandas could be back.

Xi addresses chief executives

Part of APEC is the APEC CEO summit, where they discuss the state of the world economy. Both Biden and Xi have been meeting executives.

Xi dined with US executives and received a standing ovation as he entered the room, and two more before and after he took the stage to speak.

The world needs China and the US to work together, and it is wrong to view China as a threat and play a zero-sum game against it, Xi said in a speech.

"Whatever stage of development it may reach, China will never pursue hegemony or expansion, and will never impose its will on others.

"China does not seek spheres of influence, and will not fight a cold war or a hot war with anyone," Xi said.

He assured the audience "no matter how the global landscape evolves, the historical trend of peaceful coexistence between China and the United States will not change."

The high-security dinner was a chance for companies to hear directly from China's leader, as they search for ways to navigate China's economic slowdown, a US push to "de-risk" some American supply chains away from China, and uncertainty caused by China's expanding security rules.

Xi met Tesla chief executive Elon Musk, telling him he supports the company's development in China, according to a statement from the auto maker's Weibo account.

The event generated controversy due to reported high ticket costs for companies seeking to brush shoulders with Xi.

He directed much of his speech toward the American people and spent little time on commercial relations with the US.

"I would like to let you know that China sympathizes deeply with the American people, especially the young, for the sufferings that fentanyl has inflicted upon them," he said.

Biden and Xi earlier reached an agreement on working together to curb fentanyl production.

CNN has [https://edition.cnn.com/2023/11/16/business/china-us-xi-dinner-ceo-intl-hnk/index.html at least one explanation for Xi's positive tone: Dexter Roberts, director of China affairs at the Mansfield Center at the University of Montana, said Xi's overtly friendly tone was a reflection of China's economic troubles.

China's economy enjoyed a solid start to 2023, after emerging from three years of Covid restrictions, but the recovery fizzled out in the second quarter.

It is now grappling with mounting challenges, ranging from weak consumer spending and a deepening property crisis to a slump in foreign investment.

Earlier this month, a gauge of foreign direct investment into China slipped into the red for the first time since 1998, underscoring the country's failure to stem capital outflows.

"This isn't a good time, given the state of the economy, to have hostile relations with American businesses and with the United States," said Roberts.

"When the economy goes south, top Chinese leaders start to say: 'We want to work with foreign businesses and our own private companies'.'"

Biden speaks to chief executives

The US President highlighted strong US ties to APEC economies and called on chief executives there to treat workers fairly.

Before a working lunch and speech to heads of the 21-member APEC governments, Biden spoke to an audience of CEOs, touting investments by US companies in the region including Amazon, Delta Air Lines, PepsiCo, Apple and Boeing.

Stressing the strength of the US economy, he said 60 percent of US exports went to APEC countries and American businesses were the largest source of foreign direct investment in those economies, committing at least $US40 billion in 2023.

Biden said his administration would keep working to improve labour standards and uphold commitments to unions.

Hopes for a trade deal among the 14 countries in the Indo-Pacific Economic Framework (IPEF) were dashed this week. Members could not agree on improving labour and environmental standards or compliance, people briefed on the talks said.

Anti-corruption

Countries in the US-led Indo-Pacific Economic Framework (IPEF) have added two more "pillars" to the initiative, covering cooperation on clean energy and anti-corruption measures, even as IPEF trade talks languish.

The lack of an IPEF trade agreement is a setback for the Biden administration. It had aimed to showcase the initiative during the APEC summit, as a symbol of its economic re-engagement in Asia, providing countries a counterweight to China's growing trade and economic clout in the region.

New Zealand is participating in IPEF along with Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Thailand, Vietnam and the United States.

Protests

There have been protests at APEC, with some blocking the Bay Bridge to call or a ceasefire in the Israel-Hamas war.

Organizers said 200 people attended the demonstration, which also called for an end to US military aid to Israel.

Hundreds of police began to make arrests and lead protesters away in zip ties, after the California Highway Patrol issued a dispersal order to the assembled group.

- RNZ, BBC, Reuters and CNN

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