China will host the 33rd Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Shenzhen on Nov. 18 and 19, with the theme "Building an Asia-Pacific Community to Prosper Together". This will be the third time China has hosted the APEC Summit, after 2001 in Shanghai and 2014 in Beijing. As 21 APEC member economies account for nearly 40 percent of the world population, over 60 percent of world GDP, and almost half of global trade, it stands as the region's highest-level, most extensive, and most influential economic cooperation meeting. Hence, the outcome of the 2026 APEC Summit will significantly shape the global economic and trade landscape.
APEC, established in 1989 and initiated by Australian Prime Minister Bob Hawke, has consistently aimed to support sustainable economic growth and prosperity in the Asia-Pacific region. At the 2020 APEC summit in Malaysia, leaders adopted the famous Putrajaya Vision 2040, envisioning "an open, dynamic, resilient and peaceful Asia-Pacific community by 2040, for the prosperity of all our people and future generations."
APEC 2026 Shenzhen Summit is set against the backdrop of three major trends in the world. First, rising unilateralism and geoeconomic fragmentation continue to pose significant headwinds in the world economy and trade. The sweeping global tariffs imposed by the U.S., the largest economy and importer in APEC, have distorted free trade and hurt the multilateral trading system, as well as APEC's objectives and functions.
Second, the various regional and bilateral trade arrangements involving APEC economies, including RCEP, CPTPP, USMCA, and numerous bilateral trade agreements overlap considerably, showing a "spaghetti bowl effect". This complex web of agreements leaves little room for a common free trade arrangement covering the entire APEC area, known as the Free Trade Area of the Asia-Pacific (FTAAP), envisaged in Putrajaya Vision 2040. In particular, the bilateral trade arrangements between the U.S. and other APEC members, including Japan, South Korea and Vietnam, may create barriers to free trade and WTO rules.
Third, the Asia-Pacific region is experiencing an AI-led trade boom. WTO's Global Trade Outlook and Statistics report, released in October, sharply revised the world merchandise trade outlook for 2026 upward, from a March forecast of 1.9 percent to 3.9 percent, or a doubled growth rate. The sharp upward revision is based on supply chain adaptation and AI-led investment, with leading players precisely located within the Asia-Pacific region. The report estimated that exports will grow by an astonishing 9.9 percent from Asia, 5.7 percent in North America, and 3.4 percent in South America, while dropping 0.1 percent from Europe. In terms of trade value, office and telecom equipment rose 49 percent year-on-year, of which electronic components grew by 51 percent year-on-year during the first six months of 2026. Export growth has been especially strong in East and Southeast Asia, or the west wing of the Asia-Pacific region. The U.S. is the world's largest AI investor, engine, and leading import destination. Hence, 2026 marks a new trade engine and paradigm among APEC members.
Under these new circumstances, the 2026 APEC Shenzhen summit has a vital stake in supporting APEC cooperation and common prosperity, towards Putrajaya Vision 2040. China, as a firm supporter of globalization and the multilateral trading system, will undoubtedly anchor APEC on "Building an Asia-Pacific Community to Prosper Together". On this basis, China has already hosted over 300 APEC events this year, with "openness, innovation and cooperation" as three priority areas.
The APEC Finance Ministers' Meeting and the APEC Ministerial Meeting, already held, have set the key tone for the forthcoming summit. They include, among others:
First, mutual respect with a common goal of building a win-win Asia-Pacific community for joint prosperity.
Second, adherence to free trade and a multilateral trading system with the WTO at its core, upholding resilient global supply chains covering all APEC members, and firmly opposing unilateralism and geoeconomic fragmentation.
Third, an innovation-driven growth model. AI and other frontier technologies are changing how goods are made and traded, pointing to a new growth phase for the Asia-Pacific region. This phase can in turn power global economic and trade growth. APEC member economies should step up AI-led innovation and work together to drive that growth. Cooperation on the AI-related data economy, trade, and rule-making should also be a priority on the APEC agenda.
Fourth, working together to explore an Asia-Pacific Plan. As trade arrangements overlap and the global economy grows more fragmented, APEC members should work together on a fresh approach to inclusive globalization and inclusive cooperation. The goal is a practical path toward an open, free, and non-discriminatory Asia-Pacific free trade area, one that benefits every member economy and the wider world.
The 2026 APEC summit in China will go down in history as a moment when, facing a critical juncture for the global economy, APEC economies stand together to strengthen economic resilience and inject fresh momentum into globalization.
The article reflects the author's opinions, and not necessarily the views of China Focus.
