The 32nd Asia-Pacific Economic Cooperation (APEC) summit concluded on November 1, 2025, in Gyeongju, South Korea. Leaders from the 21 regional economies convened amidst a backdrop of intense technological rivalry and widespread global economic volatility, aiming to forge a consensus. The prevailing mood of the summit was significantly shaped by a crucial development achieved just prior to the main event: a partial de-escalation of the protracted trade conflict between the United States and China.
This temporary reprieve for the global economy stemmed from high-stakes bilateral negotiations held on October 30 between U.S. President Donald Trump and Chinese President Xi Jinping. The two leaders reached an accord stipulating a one-year suspension of the most severe retaliatory measures, including mutual tariffs and export restrictions. Under the terms of this arrangement, the U.S. agreed to halve tariffs on fentanyl, reducing them from 20% to 10%. Reciprocally, China postponed restrictions on the export of rare earth metals for twelve months and committed to resuming purchases of American soybeans. Professor Leif-Eric Easley of Ewha University commented that this strategic move successfully averted the worst-case scenarios for international commerce.
Following President Trump’s early departure, which meant he missed the closing sessions, Chairman Xi Jinping seized the opportunity to dominate the narrative. Xi positioned Beijing as the primary proponent and guarantor of multilateral trade. During his address, he unveiled an ambitious proposal: the establishment of a World Artificial Intelligence Cooperation Organization. China intends to locate this new regulatory body in Shanghai. This initiative seeks to develop international standards for AI governance, framing the technology as a "public good for the international community"—a vision that stands in stark contrast to the U.S. position, which generally opposes such international oversight.
The APEC leaders, including Chairman Xi and South Korean President Lee Jae-myung, formally adopted the Gyeongju Declaration. This document reaffirmed the commitment of member economies to collaborate on pressing demographic challenges, specifically addressing issues like rapidly aging populations and declining birth rates, which are particularly relevant in countries such as South Korea. Furthermore, discussions were held regarding the denuclearization of the Korean Peninsula following a separate meeting between Xi Jinping and Lee Jae-myung, although Pyongyang swiftly rejected this agenda. The Declaration also formalized an agreement to bolster resilient supply chains across the region.
Representing 21 economies and approximately half of the world’s trade volume, APEC once again demonstrated its vital role as a forum for dialogue. While the United States, historically the architect of the rules-based international order, appears to be shifting its stance, China is aggressively advancing its own vision for global governance. Beijing, set to host the APEC summit in Shenzhen in 2026, is leveraging every opportunity to solidify its influence in both the technological and commercial spheres.