Apec summit ends in disarray

Apec summit ends in disarray

West-China divisions spill into public view

Chinese President Xi Jinping is first out of the line to distance himself from other world leaders as the Apec summit broke up on Sunday. (EPA photos)
Chinese President Xi Jinping is first out of the line to distance himself from other world leaders as the Apec summit broke up on Sunday. (EPA photos)

PORT MORESBY: An acrimonious meeting of world leaders in Papua New Guinea failed to agree Sunday on a final communique, highlighting widening divisions between global powers China and the US.

The 21 nations at the Asia-Pacific Economic Cooperation summit in Port Moresby struggled to bridge differences on the role of the World Trade Organisation, which governs international trade, officials said. A statement was to be issued instead by the meeting's chair, Papua New Guinea Prime Minister Peter O'Neill.

"The entire world is worried" about tensions between China and the US, Mr O'Neill told a mob of reporters that surrounded him after he confirmed there was no communique from leaders.

It was the first time leaders had failed to agree on a declaration in 29 years of the Pacific Rim summits that involve countries representing 60% of the world economy.

Draft versions of the communique showed the US wanted strong language against unfair trade practices that it accuses China of. China, meanwhile, wanted a reaffirmation of opposition to protectionism and unilateralism that it says the US is engaging in.

The US has imposed additional tariffs of US$250 billion (8.21 trillion baht) on Chinese goods this year and Beijing has retaliated with its own tariffs on American exports.

The two-day summit was punctuated by acrimony and also underlined a rising rivalry between China and the West for influence in the usually neglected South Pacific, where Beijing has been wooing impoverished island states with aid and loans.

US Vice President Mike Pence and Chinese President Xi Jinping traded barbs on Saturday.

Mr Pence professed respect for Mr Xi and China but also harshly criticised the world's No 2 economy for intellectual property theft, forced technology transfers and unfair trading practices.

He accused China of luring developing nations into a debt trap through the loans it offers for infrastructure.

The world, according to Mr Xi's speech, is facing a choice between cooperation and confrontation as protectionism and unilateralism grows.

He said the rules of global institutions such as the World Trade Organisation should not be bent for selfish agendas.

Mr Pence told reporters that during the weekend he had two "candid" conversations with Mr Xi, who is expected to meet President Donald Trump at a Group of 20 summit at the end of this month in Argentina.

"There are differences today," Mr Pence said. "They begin with trade practices, with tariffs and quotas, forced technology transfers, the theft of intellectual property. It goes beyond that to freedom of navigation in the seas, concerns about human rights."

The US is interested in a better relationship "but there has to be change" from China's side, Mr Pence said he told Mr Xi, who responded saying that dialogue is important.

China's Foreign Ministry rejected the US criticism that it was leading other developing nations into debt bondage.

"The assistance provided by China has been warmly welcomed by our partners in this region and beyond," Wang Xiaolong, a foreign ministry official, told a news conference.

China is a relative newcomer to providing aid, and its no-strings attached approach has unsettled Western nations that have been the mainstay donors to developing nations and often use aid to nudge nations towards reforms.

Also on Saturday, police were called when Chinese officials attempted to "barge" into the office of Papua New Guinea's foreign minister as Apec summit tensions boiled over.

The Chinese delegates tried to forcibly enter Rimbink Pato's Port Moresby office on Saturday, in an eleventh-hour bid to influence a summit draft communique, but were denied entry, three sources said.

"Police were posted outside the minister's office after they tried to barge in," one source privy to summit negotiations said.

Mr Pato had refused to meet the delegates, according to a source, who said: "It's not appropriate for the minister to negotiate solo with the Chinese. The Chinese negotiating officials know this."

The minister himself sought to downplay the incident, saying: "There wasn't an issue."

Accidentally or on purpose, Prime Minister Prayut Chan-o-cha appeared to photobomb US Vice-President Mike Pence when photographers called on leaders to wave at their cameras.

Prime Minister Prayut Chan-o-cha who also attended the summit after the Asean meetings in Singapore, stressed that Thailand endorses free trade and that the country endorses the realisation of Free Trade Area of the Asia-Pacific, or FTAAP.

He further proposed that Apec express solidarity in supporting multilateral trade that respects World Trade Organisation rules and regulations, because it is crucial to the creation of a fair international environment.

Gen Prayut also emphasised "digital" as the comprehensive stimuli for growth in Asia Pacific region while also emphasising that Apec is an important economic framework which has the potential to be a mechanism for growth and stability in the region.

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