Chinese President Xi Jinping emphasized free trade and multilateralism Oct. 31 at the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea, and proposed creating an Asia-Pacific economic community. By taking the lead in promoting a free trade order long supported by the United States, Xi became the de facto host of the summit after U.S. President Donald Trump left a day earlier. Xi entered the conference hall last and was greeted by South Korean President Lee Jae-myung.

Lee and Xi are scheduled to hold a bilateral summit on Nov. 1. Xi's visit is his first to South Korea in 11 years and his first meeting with Lee. The summit will focus on improving bilateral relations and rebuilding trust. Relations have been strained since China's retaliatory measures following the deployment of the U.S. THAAD missile defense system, and the ban on Korean cultural exports, known as the "Hallyu ban," remains in place. Regional tensions have been further heightened by the divide between the South Korea-U.S.-Japan bloc and the North Korea-China-Russia bloc, hindering progress on improving ties.

Sensitive issues continue to accumulate between the two countries, including China's illegal structures in the West Sea's Provisional Maritime Zone and rising anti-China sentiment in South Korea. The construction of nuclear-powered submarines, agreed upon by the South Korean and U.S. presidents on Oct. 29, could further complicate relations. The Chinese Foreign Ministry has already warned Washington and Seoul to uphold their nuclear nonproliferation obligations. With North Korea openly developing nuclear submarines, South Korea will need to emphasize the necessity of its own security measures.

President Lee is using the APEC summit to test his administration's "pragmatic diplomacy centered on national interest" through meetings with leaders from the U.S., Japan, and China. With the U.S., he resolved long-standing tariff disputes, secured nuclear-powered submarines, and ensured peaceful nuclear energy rights. His first meeting with Japan's new prime minister laid the groundwork for continued forward-looking cooperation. The upcoming summit with Xi will serve as the final test of his pragmatic diplomacy.

The two global leaders met for 100 minutes during their overlapping visits to South Korea, agreeing to pause the escalating trade war and establish a temporary truce. Analysts say the U.S.-China rivalry is expected to intensify across multiple fronts, leaving South Korea to navigate a complex path. Lee said South Korea will uphold its alliance with the United States while carefully managing ties with China, stressing that the country cannot rely solely on polite gestures to its sole ally or top trading partner. He added that demands must be made and issues addressed directly.