🚨 APEC

Today Korean Social News for Beginners | 2025.10.13

0️⃣ US-China Summit Concerns and Tensions in Multilateral Diplomacy

📌 APEC Summit at Risk as US-China Meeting Faces Uncertainty…Korea's Diplomacy Put to the Test

💬 US President Donald Trump has said he is reconsidering his meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, causing concern. While Trump's dissatisfaction with China's rare earth export controls is the direct cause, the cancellation of the US-China summit could also affect other scheduled meetings, including trilateral talks between Korea, the US, and China. The Korean government is working to manage unexpected diplomatic variables and ensure the event proceeds smoothly. The Presidential Office stated that "there are no changes to the summit schedule" and will not predict the situation. However, the possibility that Trump's visit to Korea might be shortened has raised concerns, putting Korea's diplomatic role to the test.

💡 Summary

• APEC is a multilateral economic forum with 21 member economies in the Asia-Pacific region.
• Trump's reconsideration of meeting Xi Jinping has created uncertainty for the 2025 Gyeongju summit.
• As the host nation, Korea is working through diplomatic channels to ensure a successful meeting.

1️⃣ Definition

APEC means Asia-Pacific Economic Cooperation, a multilateral economic forum with 21 member economies in the Asia-Pacific region. Since its establishment in 1989, APEC has focused on free trade, investment promotion, and technical cooperation among members, operating through non-binding agreements and cooperation.

APEC is not a formal treaty organization but a consultative structure that respects member autonomy and mutual interests. Each year, member economies take turns hosting the summit and coordinating the annual agenda. Korea hosted APEC in 2005 and will host it again in Gyeongju in 2025.

💡 Why is this important?

• APEC represents about 60% of global GDP and 47% of world trade.
• Most of Korea's major trading partners are APEC members.
• This is an opportunity to enhance Korea's mediating role and diplomatic status in multilateral diplomacy.
• APEC is a key platform for maintaining regional cooperation amid US-China tensions.

2️⃣ APEC's Structure and Current Status

📕 APEC's Origins and Development

• APEC was born during changes in the international economic order in the late 1980s. Key background includes:

  • It was established to expand free trade based on the easing of the Cold War and economic growth in Asia.
  • Started with 12 economies in Canberra, Australia in 1989 and gradually expanded to the Pacific Rim region.
  • It reflected the multipolarization of the international economic order and the need for regional cooperation to respond to the European Union (EU).
  • Korea was a founding member and has played a central role in Asia-Pacific economic cooperation.

• Non-binding cooperation is a key feature. Main points include:

  • It emphasizes voluntary agreements among members without formal treaties or legal obligations.
  • It has a flexible structure that respects differences in economic development levels and political systems.
  • Through the "Bogor Declaration" (1994), developed economies aimed for free trade by 2010, and developing economies by 2020.
  • It promotes regional integration gradually through practical economic cooperation and policy sharing.

📕 Member Composition and Host System

• 21 member economies form a vast economic zone. Key facts include:

  • Major powers including the United States, China, Japan, and Russia are all members.
  • Middle powers like Korea, Australia, Canada, Mexico, and Chile are also key members.
  • All 10 ASEAN (Association of Southeast Asian Nations) countries participate as a group.
  • Taiwan participates under the name "Chinese Taipei," and Hong Kong participates as a special administrative region.

• The host system is APEC's core operating method. Key features include:

  • Member economies take turns hosting the summit each year on a rotating basis.
  • The host sets the annual agenda and coordinates various ministerial and working-level meetings.
  • The host's diplomatic influence increases, and the success of the meeting depends on the host's coordination ability.
  • Korea hosted the summit in Busan in 2005 and will host it for the second time in Gyeongju in 2025.

💡 APEC's Main Issues and Challenges

1. US-China Conflict: Concerns about weakening regional cooperation due to power competition
2. Non-binding Limitations: Lack of enforcement power due to non-binding agreements
3. Crisis in Multilateralism: Strengthening protectionism and spread of bilateral agreements
4. Development Gap: Large differences in economic development levels among members
5. Expanding Agenda: Need to address new challenges like climate change and digital transformation

3️⃣ The 2025 Gyeongju Summit and Its Diplomatic Significance

✅ Korea's Role as Host and Goals

• Korea emphasizes its return to multilateral diplomacy and its role as mediator. Main goals include:

  • Set supply chain cooperation, digital trade expansion, and sustainable growth as key agenda items.
  • Aims to play a neutral coordinator role amid US-China tensions.
  • Opportunity to draw international attention to the Korean Peninsula peace process and North Korean nuclear issues.
  • Shows willingness to lead on new agenda items like economic security and high-tech cooperation.

• The successful hosting of the Gyeongju summit is a test for Korean diplomacy. Key tasks include:

  • Must safely manage a large-scale event with leaders and ministers from 21 economies.
  • Must facilitate key bilateral meetings, including the US-China summit, to achieve practical results.
  • Opportunity to showcase Korea's soft power to the world using Gyeongju's cultural heritage.
  • The content and effectiveness of the "Gyeongju Declaration" will be the criteria for evaluation.

✅ Concerns About US-China Summit Cancellation and Diplomatic Response

• Trump's reconsideration statement has caused diplomatic ripples. Key background includes:

  • Trump's dissatisfaction with China's rare earth export controls is the direct cause.
  • As US-China tensions escalate, whether the summit will happen remains unclear.
  • Could also affect other bilateral meetings, including Korea-US-China trilateral talks.
  • The possibility of Trump's visit to Korea being shortened adds pressure on Korea's status as host.

• The Korean government is managing the crisis through diplomatic coordination. Key responses include:

  • The Presidential Office is delivering a stable message, saying "there are no changes to the summit schedule."
  • Diplomatic efforts are underway to persuade both the US and China of the importance of the meeting.
  • The multilateral meeting schedule will proceed as planned, while bilateral meetings remain flexible.
  • The Ministry of Foreign Affairs and the Presidential Office are working closely to respond to unexpected variables.
  • Managing domestic public opinion and international expectations while focusing on achieving realistic results.

4️⃣ Related Terms

🔎 Multilateral Diplomacy

• Multilateral diplomacy involves three or more countries.
  • Multilateral diplomacy refers to diplomatic activities conducted within frameworks where multiple countries participate, such as international organizations or conferences. Unlike bilateral diplomacy, it involves coordinating the interests of many countries and setting common goals.
  • Main advantages of multilateral diplomacy include: First, it can build an order based on international norms and principles. Second, small and medium-sized countries have opportunities to voice their opinions. Third, multiple countries can share costs and responsibilities for efficient problem-solving. Fourth, it enhances collective response capacity to global issues.
  • APEC is a representative multilateral diplomatic platform that promotes regional cooperation in economics and pursues common prosperity. As APEC host, Korea is demonstrating its multilateral diplomatic capabilities and working to maintain a platform for cooperation even amid US-China tensions.

🔎 Rare Earth Elements

• Rare earth elements are rare minerals essential for high-tech industries.
  • Rare earth elements refer to 17 chemical elements essential for producing high-tech products like smartphones, electric vehicles, semiconductors, and missiles. They are called the "vitamins of industry" because they are scarce and the extraction and refining processes are complex.
  • The strategic importance of rare earths includes: First, China produces about 60-70% of the world's supply, raising concerns about supply chain monopoly. Second, substitutes are difficult to develop, making dependence very high. Third, they are essential materials in defense and high-tech fields. Fourth, price volatility is high, and export restrictions can severely impact entire industries.
  • Ahead of this APEC meeting, China's rare earth export controls have emerged as a new flashpoint in US-China tensions. President Trump strongly opposes this, viewing it as economic weaponization, raising the possibility of summit cancellation.

🔎 Host Country

• The host country hosts international meetings and leads the agenda.
  • A host country (or chair country) refers to the country that hosts a meeting and leads the proceedings in an international conference or organization. The host provides the meeting venue, sets the agenda, coordinates participating countries, and drafts final declarations.
  • Main roles of the host include: First, setting annual agenda and priorities to guide the meeting direction. Second, organizing and operating various ministerial and working-level meetings. Third, mediating disagreements among members and reaching consensus. Fourth, drafting declarations or joint statements reflecting summit results.
  • Korea is hosting the APEC summit in Gyeongju as the 2025 host. Successfully performing the host role is an opportunity to demonstrate the country's diplomatic capabilities and coordination skills to the international community, while also carrying significant responsibility. Especially important is the role as a neutral coordinator amid US-China tensions.

5️⃣ Frequently Asked Questions (FAQ)

Q: How is APEC different from other economic cooperation bodies (like G20 or WTO)?

A: APEC is a non-binding consultative body focused on the Asia-Pacific region.

• APEC, G20, and WTO have different characteristics and roles as international cooperation bodies. First, APEC is a regional cooperation body with 21 Asia-Pacific economies, promoting free trade and economic cooperation through non-binding agreements. It has no legal binding force, giving members high autonomy. Second, G20 is a global economic governance forum with the world's 20 largest economies, focusing on responding to financial crises and coordinating macroeconomic policies. Third, WTO is an international trade organization with 164 member countries, establishing legally binding trade rules and resolving disputes.
• APEC's characteristics are focusing on the specific Asia-Pacific region, respecting members' economic interests, and gradually expanding cooperation. In contrast, WTO deals with global trade rules, and G20 focuses on responding to economic crises.

Q: What impact would a cancelled US-China summit have on the entire APEC meeting?

A: The cancellation of a key bilateral meeting could weaken the meeting's practical results.

• The US-China summit is one of the most anticipated bilateral meetings at the APEC summit. If cancelled, several negative impacts are expected. First, discussions on APEC's core goals of regional economic cooperation and free trade could lose momentum. The US and China are APEC's largest economies, and achieving practical results without their cooperation is difficult. Second, it could affect other bilateral meetings like Korea-US-China trilateral talks, increasing diplomatic burden on Korea as host. Third, if Trump's visit to Korea is shortened or his meeting attendance becomes uncertain, APEC's status could be weakened.
• However, since APEC is a multilateral meeting structure, cooperation and agenda discussions among other members can continue even if the US-China meeting is cancelled. The Korean government is doing its best to successfully host the meeting through diplomatic coordination and is preparing for various scenarios.

Q: What does the APEC summit mean for ordinary citizens?

A: Strengthening economic cooperation can positively impact trade and job creation.

• The APEC summit is directly connected to citizens' daily lives. First, free trade and investment promotion expand opportunities for Korean companies to enter overseas markets, leading to job creation. Since APEC members are Korea's major trading partners, strengthening regional cooperation contributes to increased exports and economic growth. Second, tariff reductions and trade barrier relaxation allow consumers to purchase cheaper and more diverse products. Third, expanding digital trade and technology cooperation helps develop Korea's ICT industry and create an innovation ecosystem.
• Also, successfully hosting as chair country is positive for enhancing national image and revitalizing the tourism industry. Hosting in Gyeongju can promote Korean culture and history to the world and create favorable conditions for hosting future international events. However, these positive effects depend on the meeting's practical results and implementation of agreements.

Table of Contents

• Go to Guide