ED APEC in Gyeongju

U.S. President Donald Trump, left, shakes hands with China's President Xi Jinping during a meeting on the sidelines of the G-20 summit in Osaka, Japan, June 29, 2019. Yonhap

The upcoming Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Gyeongju on Oct. 31 and Nov. 1 is shaping up to be one of the most significant diplomatic events in recent Korean history.

With U.S. President Donald Trump and Chinese President Xi Jinping expected to attend, Korea finds itself at the heart of a rare geopolitical moment: hosting the first U.S.-China summit since the start of Trump’s second term and the first dual visit by the two leaders in 13 years. As global power dynamics continue to shift, this summit offers Korea both a diplomatic test and an extraordinary opportunity to elevate its international role.

The Gyeongju APEC meeting comes at a pivotal time. The U.S.-China trade war, which reignited following Trump’s return to office, stands at a crossroads. The summit opens just 10 days before a key tariff suspension between the two nations is set to expire. A potential agreement between Trump and Xi could reshape global trade norms. Korea has much at stake, as it is heavily reliant on exports and caught between its security alliance with the U.S. and economic interdependence with China.

For Korea, this moment demands more than symbolic diplomacy. Negotiations with the U.S. over a proposed $350 billion investment fund have reached a critical impasse. President Lee Jae Myung, in a recent Time magazine interview, warned that agreeing to the fund in its current form could be politically untenable and economically damaging, even stating it could be grounds for his impeachment. While the risks are real, delaying the talks indefinitely isn’t an option either. Prolonged exposure to high U.S. tariffs, especially while countries like Japan secure more favorable terms, could inflict long-term harm on Korea’s key export industries.

The stakes are equally high on the security front. The APEC meeting could also open a window for progress on the North Korean nuclear issue. While the possibility of renewed U.S.-North Korea dialogue remains, concerns persist over Trump’s perceived openness to accepting North Korea as a de facto nuclear state. Lee has outlined a phased approach: halting further nuclear development, offering economic incentives and then moving toward full denuclearization. Close coordination with the U.S. is essential, as is securing China’s commitment to the denuclearization process ahead of any Korea-China bilateral talks.

In this complex landscape, Lee’s foreign policy vision of “bridge diplomacy” is being put to the test. Time’s recent cover story on Lee, titled “The Bridge,” captures the essence of his approach: positioning Korea not as a passive player in great power rivalry, but as an active mediator. The article notes that if Korea can ease tensions between the U.S. and China, its global stature could rise dramatically.

The APEC meeting is the first major stage on which this vision will be tested. Beyond the high-profile trilateral diplomacy, bilateral meetings with the U.S., China and Japan must be managed strategically. Xi’s expected visit, his first to Korea in over a decade, offers a chance to reset bilateral relations and advance the long-stalled Korea-China strategic partnership. With the global trade order in flux and geopolitical rivalries intensifying, Korea must identify shared interests with both powers and prevent the summit from becoming a theater of confrontation.

As the host, Korea also has the opportunity to present a confident, forward-looking image to the world. The theme of “reboot” highlighted by Time, a nod to Lee’s broader reform agenda, should resonate through the summit’s diplomacy. If Korea can successfully mediate, build trust and articulate its strategic value, it will not only safeguard its national interests but also carve out a more influential role in a rapidly changing international system.

With just weeks remaining, the government must mobilize all diplomatic resources to ensure flawless execution. The world is watching Gyeongju, not just to see what the great powers decide, but to witness how Korea leads.