Asia-Pacific leaders yesterday failed to bridge gaping divisions over trade at a summit dominated by a war of words between the US and China as they vie for regional influence.
For the first time in the group’s history, APEC leaders were unable to agree on a formal written declaration amid sharp differences between the world’s top two economies over the rules of global trade.
“You know the two big giants in the room. What can I say?” host and Papua New Guinean Prime Minister Peter O’Neill said, conceding defeat.
Photo: AFP
Canadian Prime Minister Justin Trudeau said the failure came down to “different visions on particular elements with regard to trade that prevented full consensus.”
A US official familiar with the talks said China balked at some language related to trade. At issue was a pledge by the governments to fight “all” unfair practices, which China objected to including in the statement, said the official, who asked not to be identified as the discussions were private.
The 20 other nations endorsed the language, the official said.
O’Neill indicated that the WTO had been a sticking point in agreeing on a joint communique.
“APEC has got no charter over the World Trade Organization. That is a fact,” he said. “Those matters can be raised at the World Trade Organization.”
O’Neill denied it was a humiliation for his country, which was hosting the annual gathering of the 21 nations for the first time. He said a formal APEC statement would be released at a later date.
As tensions boiled over, police were called when Chinese officials attempted to “barge” into the Papua New Guinean foreign minister’s office on Saturday in an 11th-hour bid to influence the summit’s communique, three sources with knowledge of the situation said.
“Police were posted outside the minister’s office after they tried to barge in,” one source said on condition of anonymity.
The minister had refused to meet with the delegates, another source said, adding: “It’s not appropriate for the minister to negotiate solo with the Chinese. The Chinese negotiating officials know this.”
The minister yesterday tried to downplay the incident, telling reporters “there wasn’t an issue.”
However, Chinese Ministry of Foreign Affairs official Wang Xiaolong (王小龍) denied the incident occured, telling reporters: “It’s not true. It’s simply not true.”
Even before the summit started, tensions between the two big hitters came to the fore with US Vice President Mike Pence and Chinese President Xi Jinping (習近平) crossing swords in competing speeches.
“I spoke to President Xi twice during the course of this conference. We had a candid conversation,” Pence told reporters yesterday.
He told him the US is interested in a better relationship with China, “but there has to be change” in Beijing’s trade policies.
With fears that a trade war between the two rivals could cripple the Pacific Rim economy, some attendees voiced concern about the growing rivalry for influence.
“Business leaders do not want to speak out, but behind the scenes here, they are talking over dinner saying: ‘How has this happened?’” Digicel chairman Denis O’Brien said. “It’s a very forced situation, one country is trying to force all the other countries to change tariffs agreed over years.”
Additional reporting by Bloomberg
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
SECURITY: The New Zealand and Australian navies also sailed military vessels through the Strait yesterday to assert the right of freedom of navigation The Japan Maritime Self-Defense Force on Wednesday made its first-ever transit through the Taiwan Strait in response to the intrusion by a Chinese reconnaissance aircraft into Japan’s sovereign airspace last month, Yomiuri Shimbun reported yesterday. The Japanese news platform reported that the destroyer JS Sazanamisailed down through the Taiwan Strait on Wednesday, citing sources in the Japanese government with knowledge of the matter. Japanese Chief Cabinet Secretary Yoshimasa Hayashi declined to comment on the reports at a regular briefing because they concern military operations. Military vessels from New Zealand and Australia also sailed through the Strait on the same day, Wellington’s defense ministry