APEC, created in 1989 with the goal of regional trade liberalisation, brings together 21 economies that jointly represent about 60 per cent of world GDP and over 40 per cent of global commerce.
On Thursday, APEC ministers, including US Secretary of State Antony Blinken, held their own meeting behind closed doors in Lima to set the tone for the two-day summit to follow.
The APEC program was to focus on trade and investment for what proponents dubbed inclusive growth.
But uncertainty over Trump’s next moves following his Nov 5 election victory now clouds the agenda – as it does for the COP29 climate talks underway in Azerbaijan, and a G20 summit in Rio de Janeiro next week.
With the US president-elect having signalled a confrontational approach to Beijing for his second term in the White House, Saturday’s face-to-face between Xi and Biden will be a closely watched affair.
“AMERICA FIRST”
The summit will also be attended by Japan, South Korea, Canada, Australia and Indonesia, among others.
President Vladimir Putin, an APEC member of Russia will not attend.
Trump’s “America First” agenda is characterised by protectionist stances on global commerce, fossil fuel extraction and foreign conflicts.
It threatens alliances Biden had built on issues ranging from the wars in Ukraine and the Middle East to climate change and trade.
The Republican president-elect has threatened tariffs of up to 60 per cent on imports of Chinese goods to even out what he says is an imbalance in bilateral trade.
China is grappling with a prolonged housing crisis and sluggish consumption that can only be made worse by a new trade war with Washington.
But economists say punitive levies will also harm the American economy and affect trade with its neighbours and with Europe.
