Context:
- After a 12-year hiatus, the US hosted the Asia-Pacific Economic Cooperation (APEC) conference in San Francisco in 2023, sending a strong message that the country now views itself as a major player in the world economy.
- The summit was largely an economic forum, but it also had strategic ramifications, as seen by the Golden Gate Declaration’s acceptance.
- Disagreements amongst nations, however, barred the proclamation from mentioning Israel and the Ukraine.
US-China Relations:
- Restoring communication between China and the US after nearly a year was the most important result.
- After China had halted military communication, the summit signaled the resumption of discussions.
- The talks highlighted the continued antagonism between the two countries, even though no new agreements were struck, which might have softened the adversarial tone.
China’s Economic Ambitions:
- China, which is experiencing economic difficulties, wants more investment and technology transfers, but the US is putting restrictions on these efforts.
- President Biden stressed that the US was de-risking and diversifying from China rather than decoupling, notwithstanding the difficulties.
- The dynamics suggest that the US is handling its economic relationship with China with caution.
US-Japan-Korea Trilateral Summit:
- Reopening of communications amongst other regional powers, as well as between the US and China, occurred during the APEC conference.
- Concurrent with the US-Japan-Korea trilateral conference, China and Japan promptly recommenced negotiations.
- The Kishida-Xi meeting’s main goal was to create a new framework for trade discourse while resolving problems like limitations on semiconductors.
Taiwan’s Representation and Objectives:
- Morris Chang, the founder of TSMC, represented Taiwan at APEC, highlighting its significance as the pinnacle of engagement.
- In order to further its economic interests, Taiwan concentrated on China’s economic coercion and applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Indo-Pacific Economic Framework (IPEF):
- There were failures for the US-led IPEF, which focused on anti-corruption, clean energy, and resilient supply chains.
- Even as commerce expanded, India’s exclusion from regional trade agreements needs to be reexamined for its own good.
- The commitment of APEC to an Asia-Pacific free trade area and a WTO dispute settlement mechanism may affect India’s trade objectives.
APEC’s Role in the Indo-Pacific:
- Despite being a pioneering organization in the Indo-Pacific, APEC is nevertheless constrained because of India’s exclusion.
- China prefers that the region continue to be referred to as Asia-Pacific.
- India’s goals are in line with APEC’s emphasis on sustainability, inclusivity, resilience, and innovation, which highlights the importance of amicable relations between China and the US.
Conclusion:
- The APEC meeting emphasized regional discussions and demonstrated the significance of repairing US-China ties.
- Given its location in the same region, India ought to think about interacting with APEC in order to further its economic objectives and position itself as a desirable option for fresh FDI in the post-pandemic global economy.
