China's Xi Holds Court at APEC Summit After Trump Trade Truce 

This handout photo from APEC 2025 KOREA via Yonhap taken and released on October 31, 2025 shows China's President Xi Jinping attending a session of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Gyeongju. (AFP photo / APEC 2025 Korea via Yonhap / Handout)
This handout photo from APEC 2025 KOREA via Yonhap taken and released on October 31, 2025 shows China's President Xi Jinping attending a session of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Gyeongju. (AFP photo / APEC 2025 Korea via Yonhap / Handout)
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China's Xi Holds Court at APEC Summit After Trump Trade Truce 

This handout photo from APEC 2025 KOREA via Yonhap taken and released on October 31, 2025 shows China's President Xi Jinping attending a session of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Gyeongju. (AFP photo / APEC 2025 Korea via Yonhap / Handout)
This handout photo from APEC 2025 KOREA via Yonhap taken and released on October 31, 2025 shows China's President Xi Jinping attending a session of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Gyeongju. (AFP photo / APEC 2025 Korea via Yonhap / Handout)

China's Xi Jinping took center stage at an annual gathering of Pacific Rim leaders in South Korea on Friday, meeting Canadian and Japanese counterparts after securing a fragile trade truce with US President Donald Trump.

That agreement, struck just before Trump left South Korea, skipping the main two-day Asia-Pacific Economic Cooperation summit, cooled spiraling tensions between the world's two largest economies that jolted global commerce.

With Trump playing host for the White House's annual Halloween party back in Washington, Xi sought to cast China as the predictable champion of free and open trade at the forum, a role the US has dominated for decades.

"Changes unseen in a century are accelerating across the world," Xi told leaders of the 21-member economic bloc on Friday in the historic town of Gyeongju.

"The rougher the seas, the more we must pull together," Xi added in a speech calling for protection of global trading rules and deeper economic cooperation.

However, many Asian nations are wary of China's rhetoric, given its muscular defense posture in the region, dominance in manufacturing and its own willingness to use export controls and other tools in trade disputes.

Deputizing for Trump, US Treasury Secretary Scott Bessent told the gathered leaders - many of whom have been hammered by Trump's barrage of tariffs - that Washington was "rebalancing its trade relationships to build a stronger foundation for global growth".

The IMF initially cut the global growth outlook after Trump's 'Liberation Day' tariff announcement in April, but has edged it back up as shocks and financial conditions have proved more benign than expected.

XI MEETS JAPAN'S NEW HAWKISH LEADER

Among the most hotly-anticipated bilateral meetings, the Chinese leader held his first talks with Japan's new premier Sanae Takaichi. In brief opening remarks, both leaders said they would seek to advance ties.

While relations between the historic rivals have been on a sounder footing in recent years, Takaichi's surprise elevation to become Japan's first female leader may strain ties due to her nationalistic views and hawkish security policies.

One of her first acts since taking office last week was to accelerate a military build-up aimed at deterring the territorial ambitions of an increasingly assertive China in East Asia. Japan also hosts the biggest concentration of US military abroad.

The detention of Japanese nationals in China and Beijing's import restrictions on Japanese beef, seafood and agricultural products were also likely to be among sensitive issues on the agenda.

CANADA SEEKS TO RESTART CHINA ENGAGEMENT

Canadian Prime Minister Mark Carney also held talks with Xi, aiming to restart broad engagement with China after years of poor relations.

Embroiled in a bitter trade dispute with the United States, Canada's biggest trading partner, Carney told a gathering of executives running parallel to the main summit on Friday that Ottawa aimed to double its non-US exports over the next decade.

China is Canada's second-biggest trading partner.

Under the leadership of Carney's predecessor Justin Trudeau, Canadians were detained and executed by the Chinese government and Canada's security authorities concluded that China interfered in at least two federal elections. Xi also publicly scolded Trudeau, alleging he leaked their discussions to the press.

China announced preliminary anti-dumping duties on Canadian canola imports in August, a year after Canada said it would levy a 100% tariff on imports of Chinese electric vehicles. Senior officials from both sides met to discuss those issues earlier this month but gave no indication of any looming breakthrough.

Xi also met Thai Prime Minister Anutin Charnvirakul, while South Korean President Lee Jae Myung will tackle Korean denuclearization with the Chinese leader at a summit on Saturday.

As he held his summits on Friday, Xi's commerce minister delivered a speech on his behalf to the gathering of executives, in which he said the world was standing at a "new crossroads" between multilateralism and protectionism - a veiled jab at US trade policies.

Elsewhere, Taiwan said it was making progress on a tariff deal with the United States, and South Korea said final details of its deal with Washington were almost ready after a breakthrough agreed on Wednesday.

SOUTH KOREA HOPEFUL OF JOINT DECLARATION

South Korean Foreign Minister Cho Hyun said on Thursday that he was hopeful APEC leaders would issue a joint declaration when the summit concludes on Saturday.

Two APEC member-nation diplomats privately expressed skepticism that any statement would be particularly substantive given fractures in global politics.

APEC, which stretches from Russia to Chile and accounts for 50% of global trade, failed to adopt a joint declaration in 2018 and 2019, during Trump's first presidency.

There was also some business deals on the sidelines with US chipmaker Nvidia agreeing on a $3 billion AI joint venture with South Korean automaker Hyundai Motor Group.

Nvidia CEO Jensen Huang has had a whirlwind week, with the company becoming the first to surpass a $5 trillion valuation, but the issue of the US chipmaker's sale of advanced AI chips in China was seemingly left out of Thursday's Xi-Trump summit.

Huang said on Friday he hoped the chips can be sold in China, although stressed it was a decision for Trump.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.