What's happened
At the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea, US President Donald Trump and Chinese President Xi Jinping agreed to de-escalate their trade war, scaling back tariffs and securing supply chains. South Korean President Lee Jae Myung met Xi to discuss denuclearization and economic ties amid Seoul's balancing act between Washington and Beijing.
What's behind the headline?
Strategic De-escalation Amid Rivalry
The recent APEC summit marks a tactical pause in the US-China trade conflict rather than a resolution. Trump's tariff reductions and China's commitment to resume US agricultural imports signal mutual economic interests overriding confrontation temporarily. However, the underlying strategic rivalry remains, especially in technology and regional influence.
South Korea's Diplomatic Tightrope
South Korea is navigating a complex geopolitical landscape, seeking to strengthen its alliance with the US—highlighted by the surprise US approval for Seoul to build nuclear-powered submarines—while maintaining vital economic relations with China. President Lee's meetings with Xi emphasize denuclearization efforts on the Korean Peninsula, yet North Korea's hostile response underscores persistent regional volatility.
Implications for Regional Stability and Trade
The summit's joint declarations on economic cooperation, AI, and demographic challenges reflect a shared recognition of global trade system stresses. China's positioning as a defender of multilateralism contrasts with Trump's protectionist policies, suggesting a contest for leadership in shaping the Asia-Pacific's economic future.
Forecast
The easing of tariffs and renewed dialogue will likely stabilize markets short-term but will not eliminate strategic competition. South Korea's role as host and mediator will grow in importance, but balancing US security demands and Chinese economic ties will remain a delicate challenge. The North Korean issue will continue to test regional diplomacy and security frameworks.
What the papers say
The New York Times' Choe Sang-Hun highlights South Korea's diplomatic balancing act, noting President Lee's surprise at Trump's announcement allowing nuclear-powered submarines, which deepens Seoul's integration into US security architecture but complicates ties with China. The Japan Times emphasizes the economic dimension, reporting on the finalized US-South Korea trade deal amid weakening China-South Korea trade links.
The Independent provides a comprehensive view of the summit's outcomes, detailing Xi's call for "genuine multilateralism" and South Korea's push for denuclearization talks, while noting North Korea's sharp criticism of Seoul's approach. Al Jazeera and AP News focus on the broader summit context, with Xi positioning China as a defender of free trade and Trump departing early, underscoring contrasting leadership styles.
Gulf News reports on the Trump-Xi bilateral meeting in Busan, describing tariff reductions and supply chain agreements as a tactical pause rather than a long-term reset. These varied perspectives illustrate the complex interplay of economic, security, and diplomatic factors shaping the Asia-Pacific region's future.
How we got here
The US-China trade war, marked by tariffs and supply chain disruptions, has strained global trade and regional relations. South Korea, hosting APEC in 2025, faces pressure balancing its alliance with the US and economic ties with China. The summit provided a platform for leaders to ease tensions and discuss cooperation on trade, security, and regional stability.
Go deeper
- How will South Korea balance its relations with the US and China going forward?
- What impact will the US approval of nuclear-powered submarines have on regional security?
- What are the prospects for denuclearization talks on the Korean Peninsula after APEC?
More on these topics
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Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
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South Korea, officially the Republic of Korea, is a country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Asia-Pacific Economic Cooperation (APEC AY-pek) is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of ASEAN's series of post-ministerial conferences
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Lee Jae-myung is a South Korean politician and attorney who has been serving as Governor of Gyeonggi Province since 2018. Prior to this, he served as Mayor of Seongnam, the tenth largest city in South Korea, from 2010 to 2018.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.