China is raising concerns about a U.S. proposal for Asia Pacific Economic Cooperation (APEC) members to include sustainability and inclusivity in their trade and investment policies, according to a source familiar with the negotiations. The discussions are ongoing at the APEC summit in San Francisco as the member states try to reach a consensus on the issue.
During a trade-focused plenary meeting, U.S. Trade Representative Katherine Tai expressed hope that the proposal, known as the “San Francisco Principles for Integrating Inclusivity and Sustainability into Trade and Investment Policy,” could still be finalized. Tai acknowledged that the U.S.-led effort had the support of all economies except one, casting doubt on whether APEC would fulfill the mandate. Nevertheless, she remained optimistic that the San Francisco Principles would be completed soon.
Although few details about the U.S. proposal were disclosed, the Biden administration aims to promote the idea of enhancing opportunities for more people, especially disadvantaged populations, and incorporating clean energy and carbon emissions reduction goals into development, growth, and trade policies within APEC economies. Tai emphasized the importance of ensuring that economic and trade policies benefit all individuals, stating that economies are not just numbers but are composed of people.
Separately, Tai is also negotiating a green steel arrangement with the European Union, which aims to disadvantage Chinese steelmakers due to their higher carbon emissions.
News of China’s objections at the APEC summit coincided with high-stakes talks between U.S. President Joe Biden and Chinese President Xi Jinping, held south of San Francisco. The discussions between the two superpowers covered various topics, including Taiwan and the Israel-Hamas conflict in Gaza.
China’s embassy in Washington did not directly address the objections raised but emphasized the importance of focusing on the region’s urgent needs, promoting solidarity and cooperation, and implementing the APEC Putrajaya Vision 2040 in a comprehensive and balanced manner. The Putrajaya vision, agreed upon by APEC leaders in 2020 in Malaysia, aims to establish a free, open, fair, non-discriminatory, transparent, and predictable trade and investment environment.
These developments highlight the ongoing negotiations and tensions surrounding the integration of sustainability and inclusivity into trade and investment policies among APEC member states.
