South Korea, facing deepening fractures in the global trade order, Asia-Pacific leaders adopted a joint declaration emphasising the need for resilience and shared benefits in trade at the end of the annual APEC summit on Saturday.

The summit, hosted by South Korea, unfolded amid rising geopolitical tensions and aggressive economic strategies, from US tariffs to China’s export controls, that have pressured global trade.

Ahead of the gathering, US President Donald Trump announced trade deals with several countries, including China and South Korea, but left before the summit kicked off.

Washington’s influence was still visible in the declaration, which, unlike last year’s, did not mention multilateralism or the World Trade Organisation.

“It will be difficult to restore a free trade order based on multilateralism and the WTO,” said Heo Yoon, professor of international trade at Sogang University, adding that a paradigm shift in global trade is underway.

With Trump’s early departure, China positioned itself as an advocate of free and open trade, a role long held by the US.

Chinese President Xi Jinping announced that China will host APEC in Shenzhen in 2026. Analysts noted, however, that member nations were cautious not to suggest the US was undermining free trade or that China is now its primary defender. “Few countries believe there can be a new trade order that excludes the US,” Heo added.

South Korea’s Lee hosts Xi Jinping

Xi will conclude his three-day visit to South Korea on Saturday with a summit and state dinner hosted by President Lee Jae Myung, who has pledged to balance Seoul’s ties with Beijing while maintaining its US alliance.

Lee faces the challenge of protecting South Korea’s export-driven economy and easing tensions with North Korea amid US-China rivalry.

Lee said Seoul-Beijing relations have never been fully normalised and called for “a path of cooperation beneficial to each other.”

Earlier this week, Lee hosted Trump, announcing a trade deal lowering US tariffs in return for major South Korean investments. Xi’s visit marks his first to South Korea in 11 years.

South Korea hosts thousands of US troops and relies on the US nuclear umbrella, while its economy remains closely tied to both Washington and Beijing.

North Korea on agenda

Lee and Xi will discuss denuclearisation of the Korean peninsula. North Korea dismissed the agenda as an unrealisable “pipe dream.”

Trump had offered to meet Kim Jong Un during his visit, but Pyongyang did not publicly respond.

Trump met Xi on Thursday ahead of APEC, agreeing to lower US tariffs on Chinese goods in exchange for Beijing’s fentanyl crackdown, renewed US soybean purchases, and continued rare earth exports.

Xi also met the leaders of Japan, Canada, and Thailand.

In closing remarks at APEC, Xi proposed a World Artificial Intelligence Cooperation Organisation. Leaders also adopted declarations on demographic change and AI, though no AI regulations were mentioned.