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The 2025 Asia-Pacific Economic Cooperation (APEC) summit concluded in South Korea with a mix of optimism and tension, reflecting how East Asia’s alliances are being quietly redefined through trade, technology, and strategic recalibration.
It was held under the theme “Building a Sustainable Tomorrow: Connect, Innovate, Prosper,” and gathered leaders from 21 member economies, who together represented more than half of global GDP, to discuss cooperation in an increasingly fractured world.
APEC is a regional forum founded to promote free trade and economic collaboration among 21 Pacific Rim economies. Despite having no binding authority, it serves as a critical platform for dialogue between major and middle powers, creating a rare setting where the USA, China, Japan, South Korea, and other key players can sit together to shape the region’s economic future. Over the years, APEC has evolved from a trade forum into a stage where broader shifts in alliances, trade flows, and regional strategy are revealed. The 2025 summit held in Gyeongju, South Korea, underscored that transformation with conversations on AI, supply chains, and digital governance.
South Korean President Lee Jae-myung urged members to focus on cooperation in artificial intelligence, digital trade, and demographic resilience, which are issues that transcend national borders and are increasingly strategic. “Cooperation and solidarity are the only sure answers that will lead us to a better future,” Lee said in his opening address.
This year’s APEC was notable not only for its agenda but also because Chinese President Xi Jinping, who had previously suggested skipping the meeting, surprised observers by travelling to Korea. His presence alone suggested a Beijing desire to re-engage diplomatically after months of regional tension.
This was followed, more dramatically, by the meeting between U.S. President Donald Trump and Xi Jinping on the summit’s sidelines, which was their first face-to-face encounter in almost a year. After a private discussion, the two leaders announced a preliminary understanding to restart trade talks, tempering months of tariff escalation. The exchange, however, was largely considered a measured thaw rather than a complete reconciliation with no formal trade deal agreed.
The Gyeongju summit illustrated a central reality: East Asia’s balance of power is no longer fixed. Countries across the region are reassessing their alignments, seeking flexibility rather than choosing sides. South Korea, as host, sought to position itself as a bridge between great powers, emphasising cooperation over confrontation. Japan and South Korea announced plans for deeper semiconductor supply chain collaboration, while ASEAN members pushed for inclusive trade frameworks that avoid polarising the region.
APEC reflects the region’s new priority of competition and cooperation, where ideology takes a step back and is replaced by technology and trade interests.
The summit concluded with a joint declaration committing to strengthening open trade, digital connectivity, and sustainable development. Yet vague language underscored enduring divisions with differing views on how to achieve similar goals.
Still, the very fact that leaders met, and that Trump and Xi shook hands, was itself a significant outcome. In an increasingly polarised region, APEC provided a rare forum for engagement rather than escalation.
The next APEC summit, to be held in China in 2026, will test whether this tentative spirit of dialogue can survive the deepening competition for technological and economic dominance. In this era of strategic competition, APEC remains one of the few spaces where East Asia’s rivals still sit at the same table and is a reminder that cooperation, even if cautious, remains essential for the region’s stability and growth.
Edited by Emily Hone.
Image: Donggung Palace and Wolji Pond, formerly known as Anapji by John Ko, 2022 // Unsplash License
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