Shining the spotlight
Acrimonious Pacific summit underscores China-u.s. tensions
Pacific Rim leaders at a key Asian summit failed to reach agreement on a joint declaration on world trade for the first time in nearly three decades, highlighting the growing tensions between China and the U.S.
The Asia-pacific Economic Cooperation summit’s acrimony also underscored the rivalry between China and the West for influence in the South Pacific, where Beijing has been wooing impoverished island states with aid and loans.
The 21 APEC nations, which account for 60 per cent of the world economy, struggled at the two-day summit in Papua New Guinea to bridge their differences over the role of the World Trade Organization, which governs international trade, officials said.
Instead, a statement was issued by the meeting’s chair, Papua New Guinea Prime Minister Peter O’neill.
“The entire world is worried” about tensions between China and the U.S., O’neill told reporters surrounding him after the meetings ended Sunday, when he confirmed there was no joint declaration from the leaders.
Draft versions of the declaration seen by The Associated Press showed the U.S wanted strong language against unfair trade practices that it accuses China of conducting. China wanted a reaffirmation of opposition to protectionism and unilateralism that it says the U.S. is engaging in.
The U.S. has imposed additional
tariffs of $250 billion on Chinese goods this year, and Beijing has retaliated with its own tariffs on U.S. products.
“I don’t think it will come as a huge surprise that there are differing visions” on trade, said Canadian Prime Minister Justin Trudeau. “Those prevented there from being a full consensus on the communique.”
U.S. Vice-president Mike Pence and Chinese President Xi Jinping traded barbs in speeches on Saturday.
Pence professed respect for Xi and China but also harshly criticized the world’s No. 2 economy for intellectual property theft, forced technology
transfers and unfair trading practices. He accused China of luring developing nations into a debt trap through the loans it offers for infrastructure.
The world, according to Xi’s speech, is facing a choice between co-operation and confrontation as protectionism and unilateralism grows. He said the rules of global institutions set up after World War II such as the World Trade Organization should not be bent for selfish agendas.
Pence told reporters that he had two “candid” conversations with Xi, who is expected to meet President Donald Trump at a Group of 20 summit
at the end of this month in Argentina. “There are differences today,” Pence said. “They begin with trade practices, with tariffs and quotas, forced technology transfers, the theft of intellectual property. It goes beyond that to freedom of navigation in the seas, concerns about human rights.”
The U.S. is interested in a better relationship, “but there has to be change” from China’s side, Pence said he told Xi, who responded that dialogue is important.
China’s Foreign Ministry rejected the U.S. criticism that it was leading other developing nations into debt bondage.