Global diplomatic heavyweights converge on Gyeongju for APEC summit

U.S. President Donald Trump, right, meets with South Korean President Lee Jae Myung in the Oval Office of the White House in Washington, Aug. 25. AP-Yonhap

The upcoming Asia-Pacific Economic Cooperation (APEC) events are set to bring together the world’s leading diplomatic powers to South Korea for high-stakes talks on trade, security and global governance.

With confirmed participants including U.S. President Donald Trump, Chinese President Xi Jinping and Japanese Prime Minister Sanae Takaichi, the meetings in Gyeongju, North Gyeongsang Province, are expected to be a watershed in the global trade and security structure at a time of shifting alliances and economic uncertainty.

At the center of attention are bilateral talks between Trump and Xi set for Thursday.

Trump will arrive here on Wednesday on a state visit after stops in Malaysia and Japan as part of his first trip to Asia since beginning his second term. He is scheduled to deliver a keynote speech at the APEC CEO Summit on the day of his arrival and later hold a working dinner with other leaders. The following day, he will meet Xi for a bilateral meeting — their first in six years.

A trade confrontation between the two countries has been escalating, with the U.S. imposing high tariffs on Chinese goods and China retaliating with levies on American products. Fresh tension arose recently after China announced tighter control of rare earths and the U.S. threatened to impose additional 100 percent tariffs in return.

As Trump said he would have a "pretty long meeting scheduled" with Xi during the APEC events, diplomatic and business watchers are paying keen attention to whether the leaders of the world's top two superpowers can reach an agreement on the trade issue, which would have a global impact.

U.S. President Donald Trump, left, and Chinese President Xi Jinping shake hands during a business leaders' event at the Great Hall of the People in Beijing, Nov. 9, 2017. AFP-Yonhap

Trump is also scheduled to have bilateral talks with President Lee Jae Myung on Wednesday. In their second meeting following one in Washington in August, the leaders are expected to discuss the tariff deal between the two. Since reaching a broad agreement in July, the two countries have been deadlocked on details, especially on how Korea would provide a $350 billion investment fund to the U.S.

Korea's top officials have traveled to the U.S. for meetings with their counterparts to narrow the remaining gaps. While their goal was to finalize the deal before the APEC meetings, it is unclear if the timeline is feasible.

Xi's trip to South Korea also bears significance as it marks his first visit since 2014. He is also set to have an official state visit. Lee will hold his first bilateral talks with Xi on Nov. 1 after he transfers the APEC chair to China, next year's host.

Talks between Lee and Japan’s new prime minister are also being coordinated, though the exact date has yet to be finalized, according to National Security Adviser Wi Sung-lac on Friday.

Wi also said that, despite expectations on Trump's potential meeting with North Korean leader Kim Jong-un, “there are no new developments regarding a possible U.S.-North Korea meeting.”

As the host nation, South Korea is expected to use the occasion to highlight its role as a facilitator of dialogue among major economies. Observers also say that the leaders' gathering will serve as a test of whether the forum can reaffirm its support for free trade in the face of growing protectionism.

Although no North Korea-related session is officially planned, officials suggested that regional security issues, including Pyongyang’s recent missile activities, could surface during bilateral discussions on the event's sidelines.