The Asia-Pacific Economic Cooperation (APEC) is a platform established in 1989 to liberalize regional trade and represents about 60% of the world’s Gross Domestic Product (GDP). The negotiations held in this platform play a critical role in determining the direction of not only regional but also global economic dynamics. China’s active involvement in multilateral fora such as APEC reflects not only economic development but also the goal of building a multipolar world order. By taking a positive approach to issues such as trade liberalization and investment transparency, China aims to provide opportunities to emerging economies around the world. At the same time, US leadership on this platform carries an important responsibility for further global cooperation and trade promotion.
On November 14, 2024, at the invitation of the President of the Republic of Peru, Dina Boluarte Zegarra, Chinese President Xi Jinping paid an official visit to Lima to attend the 31st APEC Economic Leaders’ Meeting. This visit, which emphasized the historical ties between China and Peru, marks a period that calls for a reassessment of Chinese influence in Latin America, both regionally and globally. Xi’s statements highlighted the goals of deepening the comprehensive strategic partnership between the two countries and building an open economic system in the Asia-Pacific.
The theme of this year’s APEC meeting, “Empower, Engage, Grow”, clearly reflects the host country’s focus on regional unity, development, cooperation and innovation. The three key areas to be discussed under this theme are trade and investment, innovation and digitalization, and sustainable growth. These priorities are in line with the Putrajaya Vision 2040 adopted at the 2020 APEC meeting and demonstrate APEC’s pragmatic approach to goal setting and efforts to achieve institutional objectives. Some analyses suggest that the selection of these topics is intended by the host to make APEC cooperation more inclusive and resilient, avoiding unnecessary fragmentation in key areas.[1]
During the course of the meeting, it was noted that the search for dialogue with China increased and many proposals and initiatives received wide attention. This can be seen as a natural reflection of China’s increasing contributions to APEC and its influence in the region. Since joining APEC in 1991, China has made a sustained effort to liberalize and facilitate regional trade, reducing the overall tariff level from 39.5% to 7.3%. Today, China is an important trading partner and export market for many APEC members and is open to trade arrangements to promote shared development and prosperity in the Asia-Pacific region.[2]
China’s growing influence in Latin America is analyzed in the international relations literature not only in the context of economic cooperation but also in the context of reshaping geopolitical dynamics in the region. The visit to Peru is considered to be part of China’s strategy to strengthen the Latin American pillar of the Belt and Road Initiative (BRI). Moreover, such diplomatic contacts also reflect China’s aim to increase its soft power over regional actors and expand multilateral cooperation mechanisms. Latin America’s redefined role in great power competition is critical to understanding the impact of China’s economic and strategic moves on the balance in the international system.[3]
Inaugurated on the same date under the leadership of Chinese President Xi Jinping and Peruvian President Dina Boluarte, the Chancay Port is considered one of the most important projects in Latin America under the BRI. Strategically located on the Pacific coast and directly connected to the Pan-American Highway, this deep-water port brings Peru one step closer to becoming the trade hub of Latin America and lays the foundations for a strong land-sea trade route between Asia and Latin America. The port’s potential to reduce trade times to 23 days and save 20% in logistics costs demonstrates its potential to strengthen the region’s role in the global economic system.[4]
The opening of the Chancay Port is also an important milestone for the construction of multipolarity in the international system. China offers an egalitarian partnership model as an alternative to the West’s unilateral and imposing approaches. China’s principle of “comprehensive consultation, joint contribution and shared benefits” has been widely accepted in Latin America and has filled the vacuum created by dissatisfaction with the past colonial practices of Western powers.
Former Peruvian Ambassador Juan Carlos Capunay emphasized that the West is not investing enough in Latin America and that countries in the region are turning to China for economic development. According to Capunay, while the West ties its investments to conditions, China respects the priorities and independence of its partners. This shows that China is not only an economic partner but also a strategic actor supporting the development of the global south. Chancay Port stands out as a concrete example of this approach.[5]
The Port of Chancay is expected to play a strategic transformative role for Peru and neighboring countries. As Peruvian Minister of Agriculture Angel Manuel Manero has stated, shorter transportation times will allow agricultural products to maintain freshness and provide a competitive advantage, especially for exports to Asian markets. Similarly, countries such as Brazil are seizing the opportunity to deepen their trade relations by gaining faster access to Asian markets through the Port of Chancay. As Joao Villaverde of the Brazilian Ministry of Planning emphasized, access to the Pacific will accelerate the integration of South American countries with China.[6]
The Chancay Port symbolizes the egalitarian and inclusive nature of China’s cooperation with Latin American countries. The land-sea corridor, which Xi underlined with the phrase “from Chancay to Shanghai”, represents not only economic ties, but also a model of cooperation that unites the development goals of Asia and Latin America. In this context, China stands out not only as a trading partner but also as a proponent of multipolarity in the international system. Unlike the West, China prefers to cooperate without interfering in political systems and shapes its development goals on common ground.[7]
These projects are a reflection of China’s efforts to create a balanced economic order in the international system. Chinese investments in Latin America put the region at the center of global trade and offer an alternative to the West’s imposing economic order. China’s “equal partnership” perspective aims not only to generate economic growth but also to create a new pole in the global balance of power. In this context, the Chancay Port is not just a port, but a landmark that redefines the place of Asia and Latin America in the global system.
The 31st APEC Summit marks a critical turning point in the relations between global powers such as China and the US as one of the important platforms where the world economy is shaped. The 2024 APEC Summit is particularly important for the meeting between US President Joe Biden and Chinese President Xi Jinping. This summit offers an opportunity for both countries to test their mutual understanding of trade, security and global economic dynamics. It is very important that Biden and Xi come face to face for the last time at this summit. Because with Trump’s re-election as president, it is unclear how such high-level meetings will take shape in the coming period.[8]
The meeting between Biden and Xi is a strategic event that will affect many economic and geopolitical issues around the world. The two leaders aim to cooperate on very important issues such as global trade regulation, climate change, security issues. Both countries recognize that economic cooperation is important not only for their own interests but also for maintaining global stability. China’s ever-growing economic power poses a challenge to the United States, but it also offers room for cooperation.
The re-election of former US President Donald Trump creates significant uncertainty for China-US relations. Under Trump’s administration, the US has implemented an aggressive trade policy and tariffs against China, which has increased tensions in bilateral relations. Trump’s re-election as president puts high tariffs and other trade restrictions on Chinese goods back on the agenda. This has the potential to negatively affect not only China but also the global economy. Economists emphasize that such a step would harm the American economy and global trade.[9] While Trump’s “America First” policies aim to preserve the economic power of the US in the short term, in the long term, they may pose many challenges for international cooperation and trade.
In conclusion, the APEC Summit is a critical juncture that will shape the future of global economic relations. The meeting between US President Joe Biden and Chinese President Xi Jinping has the potential to affect not only the economic and geopolitical dynamics between the two countries, but also the world economy. China’s active role in multilateral platforms and its free trade and transparency-oriented approaches contribute significantly to regional and global cooperation.
The meetings between Biden and Xi at this summit are of great importance as part of their goal to establish a multipolar world order. However, Trump’s re-election to the presidency creates a serious uncertainty for China-US relations. Trump’s tougher trade policy towards China could not only increase tensions in bilateral relations but also disrupt the balance of global trade. At this point, while Trump’s “America First” policies have the potential to benefit the American economy in the short term, their impact on global cooperation in the long term could have a negative impact on both the national economy and other emerging economies. China’s more open, inclusive and egalitarian economic model offers a promising perspective for global cooperation. Therefore, platforms such as APEC create a great opportunity not only for regional trade liberalization but also for global economic stability and sustainable development.
[1] “The value pursued by APEC is clear: cooperation and development: Global Times editorial”, Global Times, https://www.globaltimes.cn/page/202411/1323180.shtml, (Date of Access: 15.11.2024).
[2] Ibid.
[3] “Xi Jinping Arrives in Lima to Attend the 31st APEC Economic Leaders’ Meeting and Pay a State Visit to Peru”, Ministry of Foreign Affairs The People’s Republic of China, https://www.fmprc.gov.cn/mfa_eng/xw/zyxw/202411/t20241115_11527108.html,(Date of Access: 15.11.2024).
[4] “Chinese, Peruvian leaders inaugurate new megaport, boosting Latin America’s trade links”, Xinhua, https://english.news.cn/20241115/98fadf2643ed45c2b9e4361958266b26/c.html, (Date of Access: 15.11.2024).
[5] Ibid.
[6] Ibid.
[7] Ibid.
[8] “Xi, Biden arrive in Peru for APEC summit amid Trump-era diplomatic uncertainty”, France 24, https://www.france24.com/en/americas/20241115-xi-biden-peru-apec-trump,(Date of Access: 15.11.2024).
[9] Ibid.
