Matthew Goodman, distinguished fellow for global economic policy and director of the Greenberg Center for Geoeconomic Studies at CFR, discusses the upcoming APEC Summit in San Francisco. Topics include reducing dependencies on China for critical resources, creating a resilient and sustainable future, and the goals and outcomes of the APEC 2023 forum for the Biden administration.
The 2023 APEC Forum, hosted by the United States in San Francisco, focuses on the theme of creating a resilient and sustainable future for all, addressing issues such as supply chain resilience, sustainability, and inclusivity.
APEC faces challenges in managing tensions within the organization, particularly regarding economic dependency on China and Russia, and while APEC provides opportunities for economic engagement and facilitates discussions, some member economies, including the United States, recognize vulnerabilities caused by overreliance on China for critical supplies.
Deep dives
APEC: Economic Integration and Regional Cooperation
APEC, or the Asia-Pacific Economic Cooperation, is celebrating its 30th anniversary and is a crucial organization promoting economic integration in the Pacific Rim. With 21 member economies, including the United States, China, Japan, and many Southeast Asian countries, APEC covers a significant portion of the global economy. It was established to showcase the United States' presence in the Asia-Pacific region beyond military and diplomatic factors, aiming to foster economic cooperation. The 2023 APEC Forum, hosted by the United States in San Francisco, focuses on the theme of creating a resilient and sustainable future for all. The forum addresses issues such as supply chain resilience, sustainability, and inclusivity.
Preparations and Expectations for the APEC Forum
Hosting the APEC Forum is a substantial endeavor, involving extensive preparations and coordination within the US government. The State Department and the US Trade Representative's Office are responsible for organizing preparatory meetings and achieving agreements on ministerial and cabinet-level issues. The hosting country selects the theme for the forum, and the United States chose resilience and sustainability as key focuses. The Biden administration's preparations include engaging in bilateral discussions, addressing issues of economic dependency on certain countries, and emphasizing the United States' commitment to the Asia-Pacific region. Expectations for the forum include showcasing US economic growth and resilience, discussing important bilateral meetings, and discussing topics such as just energy transition.
Challenges and Tensions within APEC
APEC faces challenges in managing tensions within the organization, particularly regarding economic dependency on China and Russia. While APEC provides opportunities for economic engagement and facilitates discussions, some member economies, including the United States, recognize vulnerabilities caused by overreliance on China for critical supplies. The tension arises from the need to reduce dependence while maintaining economic relations. Additionally, APEC partners have expressed interest in the United States participating in formal trade arrangements to ensure market access. However, APEC also engages in valuable work, such as promoting investment, health improvements, and disaster preparedness in the region.
The Importance of Bilateral Meetings and Potential Outcomes
While the APEC Forum involves collective declarations and statements, bilateral meetings play a critical role in achieving specific outcomes. Though a bilateral meeting between President Biden and President Xi Jinping of China is yet to be confirmed, it holds significance in reaffirming stable relations between the two countries and addressing key issues. While substantive outcomes may not be expected, potential areas for progress could include military communication, discussions on fentanyl and climate change, and reinforcing the importance of US-China dialogue. Successful bilateral meetings, as well as APEC outcomes related to the just energy transition, will contribute to the administration's assessment of a positive outcome for the APEC Forum.
Matthew Goodman, a distinguished fellow for global economic policy and director of the Greenberg Center for Geoeconomic Studies at CFR, sits down with James M. Lindsay to discuss the upcoming Asia-Pacific Economic Cooperation (APEC) 2023 forum in San Francisco, California.
