Biden, Xi draw business to Asia-Pacific summit and other things to watch

US officials are aiming for the Asia-Pacific Economic Cooperation summit to be a signature moment in President Joe Biden’s efforts to strengthen economic ties in the region and manage the relationship with China.

Next week’s long-awaited gathering in San Francisco of leaders from the 21-member forum marks the first time the US has hosted the event in 12 years and will see the first conversation in a year between Biden and his Chinese counterpart Xi Jinping on the sidelines of the summit.

It’s also an important moment for Xi, who is making his first visit to US soil since 2017. He is set to be the guest of honor at a dinner hosted by US business groups that will include top executives of major companies, an opportunity to lure foreign investors.

An APEC CEO summit will also draw chief executive officers of US and global companies, including Citigroup Inc.’s Jane Fraser, ExxonMobil Corp.’s Darren Woods, and Tesla Inc. and SpaceX’s Elon Musk.

Biden’s attention in the run-up to the summit has been dominated by the Israel-Hamas war and efforts to secure fresh funding for Ukraine’s defenses. Still, administration officials said they are focused on advancing a number of key initiatives for the Asia-Pacific region, including on trade and engaging businesses to invest in climate and infrastructure projects.

Trade, Security Agenda

One priority is working to seal elements of the Indo-Pacific Economic Framework, including on clean energy and anti-corruption initiatives. 

The framework is seen as a way for the Biden administration to engage with the region economically after the US withdrew from the Trans-Pacific Partnership and as bipartisan opposition to free trade agreements mounted in Congress.

National security priorities will also be high on the agenda as the US looks to counter deepening Chinese military influence. 

“Yes, we’re focused on what is going on in the Middle East and in Europe, but we have not and will not turn a blind eye to the security challenges that remain in the Indo-Pacific,” White House National Security Council spokesman John Kirby told reporters Wednesday. 

Biden-Xi Meeting

Much of the attention at the summit will be consumed by the Biden-Xi meeting, the first time the leaders of the world’s two largest economies have spoken since the G-20 summit in Bali, Indonesia, in November 2022.

The countries are expected to resume military-to-military communications, which were cut off by Beijing after former Speaker Nancy Pelosi’s trip to Taiwan in 2022. The US also aims to reach an agreement to secure China’s help in cracking down on the chemical ingredients used to make fentanyl, part of a broader push to target the sources of synthetic opioids.

Courting Business

On Wednesday evening, Xi is expected to headline the dinner with business leaders.

The stakes are high for the Chinese leader, who has to convince foreign executives that his country is open for business even as he pursues actions, such as a crackdown on tech, that have alarmed overseas companies. Xi is also trying to project that he can lead China out of its economic malaise after the country saw a drastic slowdown this year.

In addition, the CEO summit and Xi’s dinner with business leaders give US tech executives the chance to convey to Xi that they seek to continue doing business in China even as the US government puts guardrails around technologies for national security purposes.

Tech Executives

The tech industry will have a strong presence at the CEO gathering, where the attendees will include Musk, Microsoft Corp.’s Satya Nadella, Alphabet Inc. CEO Sundar Pichai and OpenAI CEO Sam Altman.

Biden on Wednesday night is scheduled to participate in a reception hosted by San Francisco Mayor London Breed, according to people familiar with his schedule who spoke on condition of anonymity to share the plans.

US cabinet officials have also teed up a number of high-level meetings. Treasury Secretary Janet Yellen is hosting her APEC counterparts on Nov. 12-13, following two days of talks with Chinese Vice Premier He Lifeng this week. Treasury officials are also holding meetings of US-China economic and financial working groups.

US Secretary of State Antony Blinken and US Trade Representative Katherine Tai are set to host a ministerial meeting Nov. 14-15.