**GYEONGJU, South Korea** — President Trump sat down with President Xi Jinping of China on the sidelines of the Asia-Pacific Economic Cooperation convention (APEC) in South Korea last week. The leaders of the world’s biggest economies met at the airport in Busan, an hour’s drive from the APEC host city of Gyeongju, for just an hour and 40 minutes.
Despite the brevity of the much-anticipated meeting and Trump’s absence from the main APEC Economic Leaders’ Summit, the ongoing trade dispute between the two countries loomed large over the event.
On Saturday, representatives from APEC’s 21 member countries acknowledged challenges facing the global trade system and supply chains in a joint declaration. They called for “a trade and investment environment that promotes resilience and benefits for all.”
### Tensions on Display at APEC
As the chair of this year’s APEC, President Lee Jae Myung of South Korea highlighted the forum’s role despite “different values and objectives” among its members.
“The goal is to identify common challenges that can be discussed together and to maximize cooperation within possible scope,” Lee said.
The United States is shifting from a supporter of trade liberalism to an increasingly protectionist and transactional position. According to Jeffrey Robertson, an associate professor of Diplomatic Studies at Yonsei University in Seoul, “Because of benign U.S. leadership” and “a clear lack of security concerns” in the post-Cold War era, APEC was able to set the agenda for the global trade regime.
However, transforming the institution to reflect the new global order is difficult for comparatively small players in the region. Robertson adds, “They’re caught between the United States and China.”
### Korea: Between China and the U.S.
Like many APEC members, South Korea’s balancing act between the U.S. and China has been put to the test. Relations with China suffered in 2016 when South Korea decided to host a U.S. missile defense system known as THAAD. China retaliated with measures targeting South Korea’s tourism, retail, and entertainment industries — many of which are still in effect today.
Though China remains the biggest importer of South Korean goods, it may soon be outpaced by the U.S. According to 2024 data from the Korea International Trade Association, China’s purchases were ahead of the U.S. by less than one percentage point, down from nearly 15 points a decade ago.
Surveys show South Koreans increasingly view the U.S. as the most important country for their economy, as well as their security. During an August visit to Washington, President Lee declared that South Korea’s “U.S. for security, China for economy” approach is over.
The tariff deal finalized this week between Washington and Seoul is likely to further connect the allies’ economies. In return for lowered tariffs on cars and auto parts, South Korea agreed to invest $350 billion in the U.S. over at least 10 years.
### China and Korea’s Growing Rivalry
In contrast, China and South Korea have grown increasingly at odds as China’s technological advancements have accelerated. Once a manufacturing subcontractor for South Korean companies, China has now become their global rival in key industries like electric vehicles (EV) and electronics.
Against this backdrop, Korean sentiment toward China is souring, especially among younger generations. Anti-China rallies have taken place in downtown Seoul in recent months, with protesters chanting racist slurs and making unsubstantiated claims of Chinese interference in South Korean politics. Some even marched in Gyeongju this week, chanting “CCP [Chinese Communist Party] out.”
These tensions were evident at APEC, where South Korea’s President Lee met with Chinese President Xi. Prior to the meeting, the Chinese ambassador to Korea, Dai Bing, warned of “regression” in bilateral relations.
Additionally, Chinese foreign ministry spokesperson Guo Jiakun called on the U.S. and South Korea to “earnestly fulfill their nuclear non-proliferation obligations, and do what is conducive to regional peace and stability.” This statement responded to President Trump’s recent approval of Seoul’s push for a nuclear-powered submarine.
Earlier in October, China also imposed sanctions on five U.S. subsidiaries of Hanwha Ocean, a South Korean shipbuilder that owns the main shipyards in Philadelphia.
### Mixed Signals at the Bilateral Summit
At their bilateral summit, Presidents Lee and Xi expressed optimism about their countries’ relations and reaffirmed their commitment to continued, stable economic cooperation.
Lee’s national security advisor, Wi Sung-lac, called the meeting a “comprehensive restoration” of relations. However, tensions lingered beneath the surface.
Wi Sung-lac revealed no immediate progress on the lingering sanctions related to THAAD and avoided giving a direct answer on the submarine issue. When asked about recent sanctions on Hanwha Ocean, he said he expected them to be resolved when the U.S.-China trade dispute is settled.
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The complex dynamics between South Korea, China, and the United States continue to shape regional politics and economics. As APEC concludes, all eyes remain on how these relationships will evolve amid growing rivalries and shifting global power balances.
https://www.npr.org/2025/11/02/nx-s1-5594836/us-china-tensions-south-korea-stuck-in-middle