President Biden Reaffirms US Commitment to Trade and Pacific Partnerships at Asia-Pacific Summit
In a bid to strengthen economic ties and assert American leadership, President Joe Biden delivered a resounding message to national leaders and CEOs attending the Asia-Pacific summit, emphasizing the United States’ commitment to high standards in trade and partnerships that will benefit economies across the Pacific. Biden assured attendees that the United States is here to stay, stating, We’re not going anywhere.
Fresh off his meeting with Chinese President Xi Jinping, Biden underscored that while the US is de-risking and diversifying, it is not decoupling from Beijing. However, he did not shy away from highlighting that the US and its Pacific allies can offer businesses a better alternative to China. Biden also emphasized the significant investments made by US economies in fellow Asia-Pacific Economic Cooperation (APEC) nations, including in clean energy technologies, aviation, and cybersecurity, amounting to approximately $50 billion in 2023.
The president’s efforts to nurture economic ties in the Indo-Pacific region were further demonstrated in his joint meetings with Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol. These meetings marked a significant step forward in the traditionally bitter rivalry between Japan and South Korea, as the leaders seek to forge closer cooperation in the face of shared concerns over North Korea’s threat and China’s growing assertiveness. Notably, Japan colonized the Korean Peninsula from 1910 to 1945.
Biden used his address to CEOs at the summit to highlight his administration’s commitment to strengthening ties with the region. He pointed out that APEC member countries have invested a staggering $1.7 trillion in the US economy, supporting around 2.3 million American jobs. In return, US companies have invested approximately $1.4 trillion in APEC economies.
During a working lunch with APEC leaders, Biden elaborated on his administration’s efforts funded by the Inflation Reduction Act to combat climate change and improve sustainability and clean energy infrastructure in the US. At a dinner for APEC delegations, he called upon fellow leaders to harness the power of the Pacific for a future of greater prosperity and dignity for all.
The Asia-Pacific Economic Cooperation summit, an annual gathering of heads of nations and top economic and diplomatic leaders, serves as a platform for addressing the challenges faced by the region. This year’s summit marked a significant milestone as it was hosted by the United States, which hadn’t hosted the event since 2011. In response to today’s unique challenges, including the ongoing wars, a fragile post-pandemic economy, and geopolitical tensions, Biden aimed to project American leadership and offer reassurance to businesses operating in the region.
While Biden’s meeting with President Xi sought to manage the strained US-China relationship, both leaders emphasized the importance of a stable relationship between the world’s two largest economies. They acknowledged that such a relationship benefits not only their own countries but also the world at large.
These discussions took place amidst ongoing demonstrations in and around the APEC summit. Protesters calling for a ceasefire in the Israel-Hamas conflict disrupted traffic over a major commuting bridge in San Francisco, leading to their detention by the police.
Companies around the world are now grappling with a vulnerable global economy marked by supply chain vulnerabilities exposed by the COVID-19 pandemic, climate change-induced disruptions, and geopolitical conflicts such as the Russia-Ukraine and Israel-Hamas conflicts. Additionally, emerging technologies like artificial intelligence have the potential to reshape industries and displace workers.
President Xi held a dinner with American business leaders, where they sought clarification on Beijing’s expanding security rules that could impact foreign investment. Xi emphasized the potential for cooperation, stating that there is room for helping each other succeed and achieve win-win outcomes.
However, Xi’s outlook on the post-pandemic global economy was bleak, with China’s economy still facing challenges such as falling prices and potential interruptions in industrial and supply chains. He cautioned against geopolitical rivalry and urged for stability amidst a turbulent and changing world.
White House officials have expressed optimism about the stronger position of the US economy compared to China’s and the US’s efforts in building stronger alliances in the Pacific region. The recently announced Indo-Pacific Economic Framework, comprising supply chains, climate, anti-corruption, and trade, has been a key element of this strategy. While no official trade deals were announced at the summit, the framework provides a platform for closer cooperation between the US and its 13 partner countries.
As the region moves forward, Biden and his administration aspire to drive a race to the top, fostering collaboration among nations in the Indo-Pacific. Through this approach, they aim to address critical issues such as supply chains, clean energy, and good governance more swiftly than through traditional trade negotiations.
Overall, President Biden’s presence at the Asia-Pacific summit emphasizes the US’s commitment to trade and partnerships in the Pacific region. By reaffirming American leadership and strengthening economic ties, the US aims to navigate the complex geopolitical landscape, promote stability, and foster prosperity for all nations involved.
