Xi took center stage at the Asia-Pacific Economic Cooperation summit that began Friday in the South Korean city of Gyeongju, as Trump left the country a day earlier after reaching deals with Xi meant to ease their escalating trade war.

This year’s two-day APEC summit has been heavily overshadowed by the Trump-Xi meeting that was arranged on the sidelines.

Trump described his Thursday meeting with Xi as a roaring success, saying he would cut tariffs on China, while Beijing had agreed to allow the export of rare earth elements and start buying American soybeans. Their deals were a relief to a world economy rattled by trade tensions between the world’s two largest economies.

Trump’s decision to skip APEC fits with his well-known disdain for big, multi-nation forums that have been traditionally used to address global problems. But his blunt dismissal of APEC risks worsening America’s reputation at a forum that represents nearly 40% of the world’s population and more than half of global goods trade.

Xi defends multilateralism

“The more turbulent the times, the more we must work together,” Xi said during APEC’s opening session. “The world is undergoing a period of rapid change, with the international situation becoming increasingly complex and volatile.”

Xi called for maintaining supply chain stability, in a riposte to U.S. efforts to decouple its supply chains from China. He also expressed hopes to work with other countries to expand cooperation in green industries and clean energy.

In written remarks sent to a CEO summit held in conjunction with APEC, Xi said China was open for investment and would uphold the multilateral trading system.

“Facts have proven that whoever gains a foothold in the Chinese market will be able to seize the critical opportunity in increasingly fierce international competition,” Xi wrote. “Investing in China is investing in the future.”

U.S. Secretary of the Treasury Scott Bessent, who attended the summit on Trump’s behalf, said a U.S. move to rebalance its trade relationships would ensure that “each country operates on fair and reciprocal terms.” He added that the U.S. is “investing with its trading partners to build resilient production networks that reduce dependence on vulnerable sectors.”

Xi met other leaders on the sidelines

It’s Xi’s first visit to South Korea in 11 years.

On the sidelines of the summit, Xi had bilateral meetings with new Japanese Prime Minister Sanae Takaichi, Canadian Prime Minister Mark Carney and Thai Prime Minister Anutin Charnvirakul on Friday.

In his meeting with Takaichi, Xi said he hopes the two countries would commit to building a constructive and stable relationship “fit for the new era.” Takaichi expressed hopes to ease what she called “a variety of” challenges facing the two countries. She said she also hopes to deepen her personal relationship with Xi.

On Saturday, Xi is to meet South Korean President Lee Jae Myung for another one-on-one meeting expected to touch on North Korea’s nuclear program.

APEC faces challenges

Established in 1989 during a period of increased globalization, APEC champions free and open trade and investment to accelerate regional economic integration. But the APEC region now faces challenges like strategic competitions between the U.S. and China, supply chain vulnerabilities, aging populations and the impact of AI on jobs. The U.S. strategy has been shifted to economic competitions with China rather than cooperation, with Trump’s tariff hikes and “America first” agenda shaking markets and threatening decades of globalization and multinationalism.

Leaders and other representatives from 21 Asia-Pacific Rim economies are attending the APEC meeting to discuss how to promote economic cooperation and tackle shared challenges. Opening the summit as chair, Lee called for greater cooperation and solidarity.

“It’s obvious that we can’t always stand on the same side, as our national interests are at stake. But we can join together for the ultimate goal of shared prosperity,” Lee said. “I hope we will have candid and constructive discussions on how we can achieve APEC’s vision in the face of the new challenge of a rapidly changing international economic environment.”

Carney reiterated his government’s plan to double its non-U.S. exports in the next decade, as he said that “our world is undergoing one of the most profound shifts since the fall of the Berlin Wall.”

Despite Trump’s optimism after a 100-minute meeting with Xi, there continues to be the potential for major tensions between the countries, with both seeking dominant places in manufacturing and developing emerging technologies such as artificial intelligence.

“It is certainly a contribution to bring the leaders of the two largest economies together for a meeting where they agreed to withdraw their most extreme tariff and export control threats. As a result, worst-case outcomes for global trade were averted,” said Leif-Eric Easley, professor of international studies at Ewha Womans University in Seoul.

“However, APEC is meant to be more than a venue for a trade war truce,” Easley said. “Greater multilateral efforts are needed to address the region’s most pressing economic challenges, including resisting costly and destabilizing protectionism, harmonizing regulations for sustainable trade, and coordinating standards for digital innovation.”

Host South Korea pushes for joint statement

South Korean officials said they’ve been communicating with other countries to prod all 21 members to adopt a joint statement at the end of the summit so as not to repeat the failure to issue one in 2018 in Papua New Guinea due to U.S.-China discord over trade.

South Korean Foreign Minister Cho Hyun said last week that issuing a joint statement strongly endorsing free trade would be unlikely because of differing positions among APEC members. He instead anticipated a broader declaration emphasizing peace and prosperity in the region.

As the host nation, South Korea placed a priority on discussing AI cooperation and demographic challenges during the summit.

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Wu reported from Taipei, Taiwan. Associated Press writer Mari Yamaguchi in Tokyo contributed to this report.