Pacific Rim Leaders' Summit

Backdrop of the Summit

South Korea hosted an annual gathering of Pacific Rim leaders, with a significant focus on China's President, Xi Jinping, following a fragile trade truce with the U.S. President Donald Trump. This agreement, reached before Trump left South Korea and skipped the main Asia-Pacific Economic Cooperation (APEC) summit, helped ease escalating tensions between the U.S. and China, which had impacted global trade.

China's Role in Global Trade

• Xi Jinping's Position: Xi aimed to portray China as a stable advocate for free trade, a role traditionally held by the U.S.
• Call for Cooperation: Xi emphasized the need for collective effort in turbulent times, advocating for the protection of global trade rules and deeper economic collaboration.
• Despite Xi's rhetoric, many Asian countries remain cautious due to China's regional dominance and defense posture.

U.S. Trade Strategy

• U.S. Treasury Secretary Scott Bessent conveyed the U.S. approach of recalibrating trade relationships to foster global growth.
• The IMF adjusted its global growth outlook following Trump's tariff announcements, indicating improving conditions.

Bilateral Meetings and Regional Relations

• Xi and Japan: Xi met with Japan's new premier, Sanae Takaichi, aiming to enhance ties while addressing mutual concerns.
• Japan's Position: Takaichi's nationalistic and hawkish policies might complicate relations with China, especially regarding military and territorial issues.
• Japan hosts a significant U.S. military presence, adding complexity to China-Japan interactions.
• Other agenda items included China's detention of Japanese nationals and trade disputes over agricultural products.

Canada's Engagement with China

• Canadian Prime Minister Mark Carney sought to renew engagement with China amidst a trade dispute with the U.S.
• Carney announced plans to increase non-U.S. exports and accepted an invitation to visit China.
• Canada's past tensions with China included trade tariffs and accusations of election interference.

China-Thailand Relations

• Xi met with Thai Prime Minister Anutin Charnvirakul to discuss economic cooperation and infrastructure projects, such as a rail line.

South Korea's Role

• South Korean President Lee Jae Myung planned to discuss denuclearization with Xi.
• South Korea was optimistic about achieving a joint declaration at the summit's conclusion, a first since 2018-2019.

Business Developments

• Notable side deals included a $3 billion AI joint venture between Nvidia and Hyundai.
• Nvidia's CEO expressed hopes of selling AI chips in China, although U.S. policies would influence this outcome.