Gyeongju: The Asia-Pacific Economic Cooperation (APEC) summit hosted last week in Gyeongju, North Gyeongsang Province, concluded with notable achievements, reflecting the success of President Lee Jae Myung's pragmatic diplomatic strategies.
According to Yonhap News Agency, President Lee successfully gathered leaders from 21 member economies, including the rival "G2" nations, the United States and China. The summit culminated in the adoption of the Gyeongju Declaration, which reaffirmed the members' commitment to a multilateral cooperative framework, providing reassurance to both domestic and international observers. However, questions remain about whether the goodwill and agreements reached will endure.
A significant outcome of the summit was Korea's agreement with the United States regarding a $350 billion investment into the U.S. economy, in exchange for a flat tariff rate of 15 percent on Korean exports, including cars and car parts. The agreement specifies that Korea's $200 billion cash investment will not exceed $20 billion annually, addressing Seoul's concerns related to its foreign currency reserves. The remaining $150 billion will focus on a collaborative Make American Shipbuilding Great Again project. Additionally, President Lee secured permission for Korea to build its first nuclear-powered submarine, marking a diplomatic success.
The summit also saw the easing of trade tensions between the U.S. and China, with U.S. President Donald Trump and Chinese President Xi Jinping agreeing to a trade truce. The Trump administration reduced tariffs on Chinese imports and postponed technology restrictions, while China delayed its ban on exporting rare earth minerals. Experts suggest that Trump's upcoming visit to China could determine the truce's longevity.
Further diplomatic achievements included President Lee's meeting with Xi Jinping, resulting in seven economic MOUs, including a foreign exchange swap deal. Despite potential tensions from Korea's nuclear submarine project, the discussions were fruitful. Lee also agreed with Japan's new Prime Minister, Sanae Takaichi, to maintain regular high-level meetings.
A significant economic advantage emerged from Nvidia CEO Jensen Huang's commitment to supply 260,000 GPU chips to Korea, supporting the nation's ambition to become a leading AI powerhouse and benefiting major Korean conglomerates like Samsung, Hyundai Motor, and Naver.
Overall, the Gyeongju summit produced numerous diplomatic and economic gains, highlighting the shifting dynamics between Trump's "America First" policy and multilateral free trade amidst U.S.-China tensions. President Lee's pragmatic diplomacy, prioritizing national interest, demonstrated its effectiveness in navigating complex international challenges.