China’s Xi urges Asian nations to keep supply chains stable, work together during ‘turbulent’ times

A day after reaching an agreement to roll back US tariffs, Chinese President Xi Jinping called on Asia-Pacific countries to promote free trade and maintain supply chain stability.

“The more turbulent the difficult times, the more we must work together,” Xi said. Chinese state media reading Friday, translated by CNBC. He was speaking at the first session of the Asia Pacific-Economic Cooperation (APEC) Economic Leaders meeting, which will continue until Saturday.

Xi arrived in South Korea on Thursday and met with US President Donald Trump for the first time since 2019.

China and the United States agreed to 1-year concessions on tariffs, export controls and other issues amid a relative thaw in relations affected by tit-for-tat trade measures. The United States has cut tariffs on Chinese goods by 10 percentage points, while Beijing has agreed to allow exports of critically needed rare earths.

While Trump returned to the United States on Thursday, Xi remained at the top. In his speech, the Chinese leader reiterated his view that the world is going through changes not seen for a century and emphasized how Beijing offers global opportunities in the face of increasing instability and uncertainties in the Asia-Pacific region.

Without directly mentioning the United States or tariffs, Xi shared five recommendations for cooperation at the APEC summit: preserving the multilateral trading system, creating an open economic environment, maintaining supply chain stability, promoting green and digital trade, and promoting inclusive development.

He emphasized that countries should come together and “expand” the supply chain instead of breaking away from each other.

This may run counter to the US’s emphasis on restoring manufacturing, although Xi said in his meeting with Trump that “China’s development and revitalization go hand in hand with President Trump’s vision of ‘Making America Great Again’.”

Over the last two decades, Chinese companies doubled production and country are currently calculated approximately 27% of global manufacturing net production. As labor costs and tariffs rise, Chinese factories expand to the Asia-Pacific region, and domestic demand also increases.

Trump has tried to use tariffs and other policies to encourage companies to introduce new products. Factories are returning to the USA New US tariffs announced this year also aim to reduce transshipments, which are exports of Chinese goods through other countries.

Since the first trade tensions with the United States nearly seven years ago, the Association of Southeast Asian Nations has surpassed the European Union to become China’s largest trading partner.

China will continue to “open up” its market to foreign trade and provide new opportunities for Asia Pacific and the world, Xi said on Friday.

Asia became the most preferred destination for China’s overseas investments Africa and Europe followed in the third quarter, Rhodium Group said in its report published on Thursday. During this period, Chinese companies announced investments of $15.4 billion in Asia, including data centers and battery materials, making the largest investment since the pandemic.