China took centre-stage on Monday as Asia-Pacific leaders opened an annual economic summit in the shadow of global growth clouds that are darkening by the day with the US government paralysed by infighting.
The US federal shutdown has stopped President Barack Obama from attending the two-day Asia-Pacific Economic Cooperation (APEC) summit on the Indonesian island of Bali, and another summit this week of East Asian leaders in Brunei.
US Secretary of State John Kerry stressed anew Obama's determination to remain engaged with the Pacific Rim region, but his absence has left the arena clear for the leader of one-party China to trumpet the mounting heft of the world's second largest economy.
In a speech to APEC business leaders, President Xi Jinping insisted there was "enough space to sail together" despite territorial disputes in Southeast Asia and tensions with Washington.
"China cannot develop in isolation of the Asia-Pacific and the Asia-Pacific cannot prosper without China," he said, stressing that his country's recent economic slowdown was the intended result of policies designed to put growth on a more sustainable path.
"China will firmly uphold regional peace and stability," Xi added. "Without peace, development is out of the question, like water without a source or a tree without roots."
The communist leader has been touring Southeast Asia, where there is much disquiet about China's territorial ambitions, and also touted the benefits of free trade pacts after securing commercial deals worth tens of billions of dollars in Indonesia and Malaysia.
China is involved in talks on a trade agreement grouping 16 East Asian nations just as Washington's rival "Trans-Pacific Partnership" (TPP) of 12 countries appears to be running into trouble.
While sympathetic to Obama's political plight, the leaders of US allies in APEC such as Singapore expressed disappointment that he had been unable to throw his presidential weight personally behind the TPP and Washington's stop-start "pivot" towards Asia.
Foreign friends and rivals alike, as well as financial markets, are worried by a threat bigger even than the shutdown: the possibility that the US government might default on its colossal debts unless Congress raises the federal borrowing limit by October 17.
An unprecedented default by the holder of the world's reserve currency would affect "the entire planet, and not just those countries with a strong geographical and economic linkage to the US", Mexican President Enrique Pena Nieto said at an APEC business summit.
Russian President Vladimir Putin expressed similar sentiments to the business leaders gathered in Bali.
"The US dollar is still the biggest reserve currency in the world, so it is of utmost importance to all of us," he said.
But Kerry, taking Obama's place at APEC, said the president's epic tussle with the Republicans was merely "a moment in politics" that did not deflect the United States from its strategic goals.
"I want to emphasise that there is nothing that will shake the commitment of the rebalance to Asia that President Obama is leading," Kerry told the business forum.
The United States is stumbling politically at a moment when, according to a statement by APEC foreign and trade ministers, the world economy can ill afford more instability following the 2008 financial crisis.
Previewing Tuesday's final summit declaration in Bali, the ministers said that "global growth is too weak, risks remain tilted to the downside, and the economic outlook suggests growth is likely to be slower and less balanced than desired".
'Race to the top'
Before he called off his foreign travel, Obama intended to throw his presidential weight behind a top-level round of talks among the TPP countries in Bali on Tuesday.
But doubts about the TPP are gathering pace, and also about Obama's vaunted "pivot".
Attending APEC "would have been a golden opportunity for America and President Obama himself to show leadership in that context of the new emphasis towards Asia", Malaysian Prime Minister Najib Razak said.
Obama was also forced to cancel visits to Malaysia and the Philippines due to the shutdown.
The perennial disputes that hobble all trade agreements, such as market access and protection of intellectual property, are rearing anew in the TPP negotiations and Najib sees the end-of-year deadline as "very tight".
But Kerry said a deal was still achievable in the timeframe, as he sought to sell the merits of the pact.
"At a time when all of us seek strong and sustainable growth, TPP is creating a race to the top, not to the bottom. It is reaching for the highest standards of all," he said in his speech.
AFP
Mon Oct 07 2013
Former special forces commander Prabowo to take up Indonesian presidency
Indonesia's Prabowo Subianto will take over as president of the world's third-largest democracy after sweeping the country's election with policies like free meals for school children
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Trump says he would impose tariffs on China if China went into Taiwan
Republican presidential candidate Donald Trump said he would impose additional tariffs on China if China were to "go into Taiwan,"
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.