South Korea Strives to Maintain Relations with Both U.S. and China as APEC Faces Ongoing Competition

The 2025 Asia-Pacific Economic Cooperation (APEC) summit held in Gyeongju, South Korea, took place amid evolving global trade patterns. With U.S. President Donald Trump opting out of the main economic leaders' sessions, Chinese President Xi Jinping seized the opportunity to position China as a champion of open markets and multilateral cooperation. Trump's absence, following his earlier one-on-one meeting with Xi in Busan, highlighted the growing economic competition between the U.S. and China and drew attention to the region's attempts to manage the consequences.

Trump's shortened stay came after he concluded a controversial trade agreement with South Korea, which included tariff reductions in return for Seoul's commitment to invest $350 billion, as reported by

. The U.S. president also reached a temporary truce with China, pausing a planned 100% tariff hike on Chinese imports, while Beijing agreed to postpone restrictions on rare earth exports and resume soybean purchases from American farmers, according to . However, with Trump leaving early, South Korea and other APEC members were left to address the absence of the world's largest economy—a gap China quickly moved to occupy.

Xi's participation was a focal point at the summit, as his government used the event to push back against U.S. protectionism and reaffirm China's pledge to "uphold the multilateral trading system," according to

ABC News . ABC News also highlighted that Chinese representatives promoted cooperation on artificial intelligence regulation, demographic issues, and strengthening supply chains—key priorities for South Korea's APEC agenda. This approach fits with China's broader strategy to deepen economic links in the Asia-Pacific, as demonstrated by a newly enhanced China-ASEAN free trade pact signed by Premier Li Qiang just before the summit, according to MarketScreener .

Other regional leaders took advantage of the changing environment. Canada's new Prime Minister Mark Carney met with Xi to push for greater trade diversification, with the goal of doubling exports to countries other than the U.S. over the next ten years. Talks centered on reducing tariffs for Canadian canola—a $5 billion sector facing a 75.8% Chinese tariff—and expanding opportunities for clean tech and critical minerals, according to

Meyka . Meanwhile, South Korean President Lee Jae Myung managed to secure a U.S. tariff cut in talks with Trump, while also holding separate discussions with Xi on economic collaboration, as Yonhap reported.

The summit also saw movement toward collective agreements. After years of stalemate, APEC members were close to reaching a joint statement on issues like protectionism, digital standards, and supply chain risks, according to

Reuters . South Korean officials emphasized the need to avoid the deadlocks of 2018 and 2019, when U.S.-China disputes blocked unified declarations, as noted by U.S. News . Still, the anticipated declaration is likely to be less ambitious than previous versions, reflecting the differing priorities of member economies, according to Al Jazeera .

Business alliances further highlighted the region's economic goals. Nvidia CEO Jensen Huang revealed new partnerships with Samsung, Hyundai, and SK Hynix to develop AI infrastructure, robotics, and autonomous vehicles, aiming to make South Korea a leader in future technology, according to

Republic World . Republic World also mentioned that Huang suggested U.S. authorities might soon permit AI chip sales to China again, though he acknowledged that Trump would have the final say on exporting advanced Blackwell chips.

As the summit wrapped up, the combination of reduced U.S. engagement and China's proactive diplomacy left Asia-Pacific economies facing a complicated environment. While China's outreach and trade deals strengthened its regional position, experts pointed out that bilateral agreements alone may not be enough to offset the economic weight of the U.S., according to

Investing.com . For now, APEC's emphasis on resilience and partnership provides a fragile but essential structure for supporting global trade amid rising geopolitical strains.