China’s President Xi urges Asian countries to maintain stable supply chains and cooperate in ‘turbulent’ times

A day after securing an agreement to lift U.S. tariffs, Chinese President Xi Jinping called on Asia-Pacific countries to support free trade and maintain supply chain stability.

“The more turbulent times become, the more we must cooperate,” Xi said in a readout on Chinese state media on Friday (translated by CNBC). He was speaking at the first session of the Asia-Pacific Economic Cooperation (APEC) economic summit, which runs until Saturday.

President 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 have agreed to grant concessions on tariffs, export controls and other issues for one year in a bid to relatively ease relations affected by retaliatory trade measures. The US has cut tariffs on Chinese goods by 10 percentage points, while the Chinese government has agreed to allow exports of critically needed rare earths.

Mr. Trump returned to the United States on Thursday, but Mr. Xi remained behind for the summit. In his speech, the Chinese leader reiterated his view that the world is experiencing changes not seen in 100 years, and emphasized how Beijing is providing global opportunities in the face of growing instability and uncertainty in the Asia-Pacific region.

Xi, who did not directly mention the United States or tariffs, shared five cooperation proposals at the APEC summit: protecting the multilateral trading system, creating an open economic environment, maintaining supply chain stability, promoting green and digital trade, and promoting inclusive development.

He emphasized the need for countries to work together and “scale up” supply chains, rather than cutting each other off.

As President Xi emphasized in his meeting with President Trump, “China’s development and revitalization are closely related to President Trump’s vision of “Make America Great Again,”” and this may run counter to the United States’ emphasis on reshoring manufacturing.

Over the past two decades, Chinese companies have doubled their production, and China now accounts for about 27% of the world’s net manufacturing output. As labor costs and tariffs rise, Chinese factories spread across the Asia-Pacific region, increasing local demand.

President Trump has tried to use tariffs and other policies to encourage companies to bring factories back to the United States. New U.S. tariffs announced this year also seek to reduce transshipment, or exports of Chinese goods made through other countries.

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

President Xi said on Friday that China will continue to “open up” its markets to foreign companies and provide new opportunities for Asia-Pacific and the world.

Rhodium Group said in a report on Thursday that Asia was the top destination for Chinese outbound investment in the third quarter, followed by Africa and Europe. Chinese companies announced $15.4 billion in investments in Asia during the period, the most since the pandemic, in deals including data centers and battery materials.