China in spotlight at Pacific Rim summit
By ELAINE KURTENBACH
BW Exclusives
businessweek.com
HANOI, Vietnam
China's burgeoning influence over key regional trade and security issues -- especially the impasse over North Korea's nuclear program -- was evident Thursday as President Hu Jintao arrived for an annual summit of Pacific Rim leaders.
Hu has been consolidating his power. As head of the ruling Communist Party, he faces no elections and no formal political opposition.
The restrained and somber Hu is not known for his flashy style. But China's soaring economy and increasingly assertive diplomacy have raised its stature in gatherings such as this week's Asia-Pacific Economic Cooperation summit at a time when U.S. influence appears to be fading, analysts say.
"Ten years ago, there could be little doubt that the United States was the dominant economic force in Asia -- probably followed by Japan," said Greg Mastel, chief international trade adviser at Miller & Chevalier in Washington.
"Obviously, Washington and Tokyo are still important, but Beijing's economic rise has been meteoric," Mastel said.
Beginning his Vietnam stay with a formal state visit, Hu toured the port city of Danang, a magnet for the foreign investment that has helped make Vietnam Asia's second-fastest growing economy after China. He made a brief stop in the scenic, ancient town of Hoi An before traveling on to the Vietnamese capital for the weekend summit of the 21 members of the Asia-Pacific Economic Cooperation forum.
Meanwhile, China's foreign minister, Li Zhaoxing, met with his Japanese counterpart, Taro Aso, and other ministers to discuss regional issues including efforts to resume stalled six-nation talks aimed at persuading North Korea to give up its nuclear weapons program.
Of the six countries involved, China, Japan, the U.S., Russia and South Korea are attending the APEC summit. Only North Korea, which had boycotted the talks over what it termed a "hostile" U.S. stance, is not included.
The North agreed in October to return to the talks, which are expected to resume next month although no date has been announced.
"All parties should continue efforts to resume the talks as soon as possible," Li said late Wednesday, in remarks shown on China's state-run television, CCTV.
China's status as host of the talks and North Korea's closest ally ensures its voice will be heard as APEC members focus on ways to encourage progress on the issue.
Though China tends to keep a lower profile on trade issues -- the other main preoccupation of the APEC summit -- the gathering follows a flurry of diplomatic events that have showcased Beijing's growing sway, especially on the economic front.
Just two weeks ago, China wrapped up a landmark summit with African nations that clinched 14 business deals worth $1.9 billion for projects in infrastructure, telecommunications and energy.
The week before that, Southeast Asian leaders gathered in the southern Chinese city of Nanning for a summit celebrating 15 years of "dialogue" relations with Beijing, as well as burgeoning trade and investment ties.
Chinese officials joined other members in pledging to make concessions that would help rekindle World Trade Organization talks -- stymied by differences over farm subsidies and other trade barriers.
Since taking power four years ago, Hu has burnished his diplomatic credentials, while building closer ties with many resource-rich developing nations seen as important suppliers of oil, gas and other resources needed to fuel China's booming economy. Vietnam is the first stop on a four-nation tour that will also take him to Laos, India and Pakistan.
Vietnam's president, Nguyen Minh Triet, received Hu in Hanoi with a bear hug.
China's fast-improving relations with Vietnam are typical of its deepening ties with its neighbors.
The countries fought a brief but bloody border war in the late 1970s but in recent years have set aside antagonisms to foster closer trade and investment.
Chinese businesses have nearly 400 projects in China, with investment totaling $834 million, Chinese state media reported Thursday. Two-way trade soared to $10.2 billion last year, from only $30 million in 1991.
China's trade with other APEC members surged to $835.5 billion in the first nine months of this year, up 21 percent over the same period of 2005, according to the Chinese Commerce Ministry. |
