The Asia-Pacific Economic Cooperation (APEC) forum is preparing for one of its most closely watched gatherings, with US President Donald Trump, Chinese President Xi Jinping and Russian President Vladimir Putin expected to attend the leaders’ summit in Shenzhen, China. The meeting comes as geopolitical tensions, trade disputes and conflicts affecting global energy markets place growing pressure on international economic cooperation.
The 21-member forum brings together economies responsible for a substantial share of global output and trade. Although APEC does not operate as a formal political or security alliance, its annual leaders’ meeting provides an important platform for major powers to discuss economic relations, investment, supply chains and regional stability.
Here are five key facts about APEC and the issues likely to shape this year’s summit.
1. What Is APEC and Why Does It Matter?
Founded in 1989 in Canberra, Australia, APEC began as an informal dialogue involving 12 economies. It has since developed into the Asia-Pacific region’s leading economic cooperation forum, promoting trade, investment, economic growth and regional integration.
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The grouping’s 21 members account for approximately 62% of global GDP and around half of international trade, making it an important platform for discussions about the global economy.
One distinctive feature is that APEC refers to its participants as “member economies” rather than countries. This arrangement allows both Hong Kong, which is governed by China, and Taiwan, which Beijing claims as part of its territory, to participate under their respective designations.
However, India, despite being the world’s most populous country, is not a member.
APEC also operates differently from organisations that impose legally binding obligations on their members. Its decisions are reached through consensus, and commitments are voluntary and non-binding. This allows economies with different political systems and strategic interests to participate without accepting a common set of enforceable economic rules.
2. Why Is China Hosting the Summit in Shenzhen?
China is hosting APEC for the third time, following previous summits in Shanghai in 2001 and Beijing in 2014. This year’s choice of Shenzhen carries both economic and strategic significance.
Located close to Hong Kong, Shenzhen is part of China’s Greater Bay Area, which also includes Macau. Beijing aims to develop the region into a major international centre for technology, finance and innovation.
The city is also home to some of China’s most prominent technology and manufacturing companies, including BYD, Huawei and Tencent. Its economic transformation from a relatively small settlement into a major technology and industrial centre makes it an important showcase for China’s development model.
Chim Lee, a senior analyst at the Economist Intelligence Unit, said the choice reflects both domestic and international considerations. Shenzhen provides China with an opportunity to highlight its technological capabilities, trade ambitions and resilience amid geopolitical uncertainty.
Hosting the summit in the city also allows Beijing to present its vision of the Greater Bay Area as an increasingly important centre of global economic activity.
3. Which World Leaders Are Expected to Attend?
The presence of several major world leaders is expected to make this year’s meeting particularly significant.
Chinese President Xi Jinping is set to chair the leaders’ meeting and deliver remarks. US President Donald Trump and Russian President Vladimir Putin are also among the expected participants, creating the possibility of high-level discussions involving three major powers.
Other expected attendees include Philippine President Ferdinand Marcos Jr. and the leaders of Canada, Australia, Mexico, Indonesia, Malaysia, South Korea and Vietnam.
Taiwan has designated Stan Shih, founder of Acer, as its representative. Japan has not formally confirmed whether Prime Minister Sanae Takaichi will attend, while New Zealand has yet to officially announce its delegation.
The potential participation of Trump, Xi and Putin will attract particular attention because their countries have overlapping economic interests but sharply different positions on trade, security and international conflicts.
However, the presence of leaders at the same summit does not necessarily mean that formal bilateral or trilateral agreements will follow.
4. What Are the Main Issues to Watch?
Several geopolitical and economic disputes are expected to shape discussions in Shenzhen.
Middle East instability and energy security
The economic consequences of conflict in the Middle East are likely to feature prominently. Disruptions to energy supplies and shipping routes can affect global trade, supply chains and inflation, creating challenges for economies that depend heavily on imported energy.
For APEC members, the issue is particularly important because economic growth across the region remains closely connected to international trade and reliable energy supplies.
Trump, Xi and Putin’s potential interactions
The possible presence of all three leaders places their diplomatic interactions among the summit’s main points of interest.
China has shown reluctance to participate in nuclear disarmament discussions, partly because its nuclear arsenal is smaller than those of the United States and Russia. Washington and Moscow may also seek to discuss the war in Ukraine, although their respective positions on China could differ.
The summit could therefore provide opportunities for diplomatic contact, even if the leaders do not reach substantive agreements.
US-China trade and technology tensions
Relations between Washington and Beijing will be another major focus. Both sides are facing difficulties in meeting commitments associated with an extended trade truce, according to analysts.
Rare earth supplies, artificial intelligence, tariffs and technology restrictions are likely to remain important areas of disagreement. US arms sales to Taiwan will also be closely watched, given Beijing’s strong opposition to military cooperation between Washington and Taipei.
These issues extend beyond bilateral trade. They affect global manufacturing, technology supply chains and the ability of businesses to operate across major markets.
China’s relations with Japan and the Philippines
Regional security tensions will also influence the summit’s diplomatic environment.
Relations between China and Japan have remained strained since November 2025, when Japanese Prime Minister Sanae Takaichi suggested that Japan could deploy its military if Chinese action against Taiwan also threatened Japanese territory. Beijing strongly objected to her remarks.
China’s relationship with the Philippines is also under pressure because of continuing disputes in the South China Sea. These tensions involve maritime claims and competing interests over access to strategically important waters.
The participation of both countries’ leaders could provide an opportunity for diplomatic engagement, although the underlying disputes remain unresolved.
5. Who Are APEC’s 21 Members?
APEC consists of 21 member economies spanning the Asia-Pacific region:
- Australia
- Brunei
- Canada
- Chile
- China
- Hong Kong
- Indonesia
- Japan
- South Korea
- Malaysia
- Mexico
- New Zealand
- Papua New Guinea
- Peru
- The Philippines
- Russia
- Singapore
- Taiwan
- Thailand
- The United States
- Vietnam
The diversity of its membership is one of APEC’s defining characteristics. It brings together advanced industrial economies, emerging markets and developing economies, allowing discussions on trade and investment across a broad geographical and economic landscape.
What Happens Next?
The APEC leaders’ meeting is scheduled for November 18 and 19, preceded by an annual CEO summit on November 17 and 18. The discussions will take place against a backdrop of trade uncertainty, geopolitical competition and concerns about the resilience of international supply chains.
The gathering’s significance will depend not only on the declarations issued by its members but also on whether major economies can maintain dialogue despite their differences.
For China, hosting the summit offers an opportunity to demonstrate its economic influence and present Shenzhen as a centre of technological development. For the United States, Russia and other participants, the meeting provides a platform to engage with key regional economies while navigating competing strategic priorities.
APEC’s consensus-based and non-binding structure limits its ability to resolve major geopolitical disputes. Nevertheless, its economic reach makes it an important venue for maintaining communication among powers whose decisions have consequences well beyond the Asia-Pacific region.
With information from Reuters.
