► While critics tend to dismiss APEC citing its non-binding nature, the platform has shown to have significant implications for regional economy and economic governance.

► As the host, the US is advancing the cooperation under the theme of “Creating a Resilient and Sustainable Future for All”, reflecting the continuity of the grouping’s cumulative effort over the years to realise the Putrajaya Vision 2040.

► On the sidelines, several bilateral gatherings, including the one between Biden and Xi, deserve to be watched. They can inform us about current international dynamics and their stances towards global commons management.

This year’s Asia-Pacific Economic Cooperation (APEC) Leaders’ Week will take place in San Francisco, the United States (US) on 11-17 November. The town will witness about 20,000 attendees including heads of states and business leaders. Created in 1989, APEC is a grouping of 21 member economies aimed at promoting regional economic integration. Its economic weight can hardly be ignored. APEC covers nearly 40 percent of the world’s population and accounts for nearly 50 percent of the global trade.

While critics usually dismiss APEC by citing that it relies on voluntary collaboration, the forum has shown to have significant implications for regional economy and economic governance. First, its non-binding nature turns out to be its strengths. Put differently, APEC is a platform that encourages open dialogue, allowing the participants to voice concerns and pitch ideas with one another. As a result, discussions regarding how to govern emerging issues such as artificial intelligence can be explored in terms of how a shared future and regional governance will likely look like.[1] Also, some policy thoughts incubated at this grouping ended up being further investigated and pursued at other fora. For example, APEC members’ ideas are instrumental in devising the World Trade Organization (WTO)’s 2014 Trade Facilitation Agreement (TFA).[2] Moreover, the grouping has its Secretariat based in Singapore. The entity supports the APEC processes through information management, coordination, and technical support, and handling over 250 member-funded projects. The Secretariat helps facilitate the continued implementation of the initiatives over the years.[3] In addition, the Leaders’ Summit provides opportunities for governments to convene dialogues on the sidelines. Such interactions can help resolve dyadic tensions and tighten economic collaboration. For instance, the Japan-Thailand gathering will explore joint investments in the Land Bridge Project – a mega-infrastructure project in the latter’s South.[4] Also, Tokyo reportedly planned to raise with Beijing the latter’s bans of the former’s seafood products at their meeting.[5]

Being the host, the US selected the theme of “Creating a Resilient and Sustainable Future for All” to guide the directions of this year’s cooperation. The theme aspires to build “interconnected, innovative, and inclusive” Asia-Pacific. In other words, Washington seeks to build a resilient and well-connected region to achieve broad-based prosperity, foster innovative conditions for sustainability, and ensure equitable and inclusive prospects for all. One of the likely outcomes is some joint statements pertaining to just energy transition and sustainable agriculture, given consensus at the preceding ministerial meetings. The US also plans to offer solutions for post-COVID-19 recovery, digital economy, and supply chain enhancements.[6] Another potential outcome is reflected by an American senior officer’s remark at the press conference on 6 November. He noted that the Biden Administration is looking to build upon the Bangkok Goals on Bio-Circular-Green Economy endorsed at the 2022 Leaders’ Summit and explore how sustainability could be further advanced in the realms of transnational supply chains and regional economic governance.[7] This shows that the Administration strives to realise the Putrajaya Vision 2040. Adopted in 2020 by the Leaders, the Vision maps out a set of priorities the members will embark on to accomplish “an open, dynamic, resilient and peaceful Asia-Pacific community by 2040, for the prosperity of all . . . people and future generations.”[8]

On the sidelines, what will likely happen is an announcement of the progress of the Indo-Pacific Economic Framework for Prosperity (IPEF) negotiation. The US will host the third in-person IPEF Ministerial Meeting in San Francisco on 13-14 November 2023. The Ministers will review the headway of the ongoing talks under Pillar I (Trade), Pillar III (Clear Economy), and Pillar IV (Fair Economy) and discuss the progress made since the substantial conclusion of Pillar II’s IPEF Supply Chain Agreement in May 2023.[9] This 14-nation arrangement, which excludes China, is suspiciously perceived by the latter. Beijing regarded it as a Washington-led initiative to counter it in the economic sphere.[10] Hence, the announcement will likely trigger China’s reactions.

The meet-up between the US President Joe Biden and Chinese President Xi Jinping scheduled to take place at the margins deserves to be highlighted. For one thing, it constitutes their first meeting since the G20 Summit in Indonesia in November 2022. Also, the world’s two biggest economies will meet against the backdrop of tense geopolitical dynamics and strategic contestation. Their ties have deteriorated since the Chinese balloon incident in early 2023. In October 2023, Washington heightened its export controls on advanced computing and semiconductors to Beijing and added thirteen Chinese firms to its Entity List.[11] These recent measures exhibit the former’s additional attempts to block the latter from acquiring the most advanced technologies which have strategic and national security implications. In addition, the near collision between the American and Chinese jets over the South China Sea (SCS) in late October 2023 further complicated their relations.

While less is known about the outcomes, both sides’ earlier gestures can hint us about what will be discussed. First, the meet-up is seen by the US and China as a channel to lessen miscommunication and avoid unnecessary confrontation. On 26 October 2023, Chinese Foreign Minister Wang Yi remarked that despite their disagreements, both sides “share important common interests and face common challenges” and the dialogue “can increase mutual understanding, reduce misunderstandings and misjudgments, constantly seek to expand common ground and pursue mutually beneficial cooperation.”[12] On 27 October 2023, Biden reportedly stressed to Wang Yi that their nations must “manage competition in the relationship responsibly and maintain open lines of communication” as well as jointly tackle global challenges.[13] Also, due to their recent aircraft near-collision, the SCS issues will likely be brought up. On 3 November 2023, the talks between high-level American and Chinese officers covering maritime issues including SCS were described as “substantive, constructive, and candid” and part of “efforts to maintain open lines of communication and responsibly manage the U.S.-China relationship.”[14] Hence, one can infer that the Biden-Xi Summit will further discuss how to prevent and manage high seas crises. Regarding Taiwan, Washington has maintained a “One China policy” and supported a status quo in the Strait. Yet, the former may touch on this matter especially how to avoid potential air and maritime collisions in this zone which can culminate escalations, leaving both sides abandon the status quo.

In conclusion, the upcoming APEC Summit will entail the grouping’s progressive works on regional economic cooperation and integration to achieve the Putrajaya Vision 2024. The sideline gatherings are also to be watched, especially the Biden-Xi meet-up. It is because they can inform us about the current international dynamics and their policy directions regarding the management of the global commons.