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Suffocating under a mountain of debt to China, communist Laos is struggling to tame rampant inflation, with food prices rising so sharply that a growing number of households are resorting to foraging.At a market in Vientiane, traders told AFP they have never known business to be so slow, as families have seen the value of their money collapse since Covid-19.While the pandemic and Russia’s invasion of Ukraine sent prices around the world spiralling, Laos has found itself incapable of putting the brakes on inflation.Prices rocketed 23 percent in 2022 and 31 percent last year, while they are on course for 25 percent this year, according to the Asian Development Bank (ADB).Families in particular have been hit hard as the cost of basic staples such as rice, sugar, oil and chicken doubled last year. A growing number of households are so desperate for food that they are now having to forage to supplement their diets, according to a World Bank household survey earlier this year.At Vientiane’s morning market, a gold trader said that where customers used to come to buy necklaces, rings and earrings for special occasions, now all anyone wants is to sell their valuables to raise cash.”I sometimes sit all day and nobody buys my gold,” the 45-year-old told AFP last month, speaking on condition of anonymity because talking to foreign media in authoritarian, one-party Laos is risky.”My shop used to be busy but now nobody buys gold — they all come to sell it to get money.”After 15 years running his shop, the trader said he fears for the future of his business.- ‘Unsustainable’ debt – Despite three decades of consistent economic growth, Laos remains one of the poorest countries in Asia, with limited transport infrastructure and a low-skilled workforce mostly employed in agriculture. Life expectancy is just 69 years and the ADB says that nearly one in three children under five is stunted because of malnutrition — one of the highest rates globally.In recent years, the government has borrowed billions of dollars from neighbour China to fund a $6-billion high-speed railway and a series of major hydropower dams — aiming to become the “battery” of Southeast Asia.The World Bank warned in a report last week that public debt — over $13 billion, or 108 percent of GDP — was “unsustainable”. Servicing the debt is fuelling inflation by driving down the value of the kip, which lost half its value against the dollar in 2022, and nearly a fifth in the first nine months of 2024.”Given Laos’ heavy reliance on imports, the kip’s depreciation has driven up domestic consumer prices and inflation, squeezing domestic demand and slowing economic recovery,” Poh Lynn Ng, an economist with the ASEAN+3 Macroeconomic Research Office (AMRO), told AFP.Interest payments totalling $1.7 billion are due in 2024 and an average of $1.3 billion for the next three years, further eroding Laos’ foreign exchange reserves.AFP contacted the Laotian finance ministry for comment, but did not receive a response.- Response ‘too slow’ – The Bank of Lao PDR has raised interest rates and in August, the government launched a plan aiming to bring inflation below 20 percent by December.But Vivat Kittiphongkosol of the Joint Development Bank Laos said the government had been “too slow” to react as problems unfolded.”To kill this economic problem, you cannot utilise a single transaction and expect it to solve everything. You need to do a lot of things,” he told AFP.The World Bank says the government has brought some stability to its finances, but mainly through debt deferrals and limiting spending on health, education and welfare.Alex Kremer, the World Bank Country Manager for Laos, warned these austerity measures would have damaging long-term consequences.”Continued underinvestment in human capital will damage the country’s long-term productivity and its future ability to compete in regional markets,” he said.Instead, the World Bank has urged the government to boost revenue by cutting tax breaks — and also to try to restructure its debt.Though small, Laos is too important to Beijing to be allowed to fail, JDB’s Vivat said, both politically and as a key leg in the Belt and Road Initiative route that aims to connect southwest China ultimately to Singapore. A Chinese foreign ministry spokesman told AFP Beijing was doing “all it can to help Laos ease its debt burden”. But Laotians can expect more pain in the short term, with the ADB predicting inflation will stay above 20 percent until the end of next year at least.

Chinese President Xi Jinping on Saturday called for Asia-Pacific economies to “unite and cooperate” in the face of mounting “protectionism,” at a summit in Peru.Speaking to Asia-Pacific Economic Cooperation (APEC) leaders hours before he is due to hold talks with US counterpart Joe Biden, Xi pointed to “challenges such as geopolitics, unilateralism and rising protectionism.””We must unite and cooperate,” he added, in remarks published by Chinese state broadcaster CCTV.Xi’s planned meeting with Biden comes two months before Republican President-elect Donald Trump — who engaged in an escalating tariffs war with Beijing during his first term in office — returns to the White House in January.On the campaign trail this time, Trump has vowed a series of protectionist trade policies including across-the-board tariffs on all imports and especially high levies on China.On Saturday, Xi urged APEC members to stand firm on multilateralism and open economies while pushing for regional integration.He nodded to efforts in creating an Asia-Pacific free trade area — which has been in the works for years — and said that Beijing is willing to negotiate trade agreements in the digital and green sectors.Xi, whose country will host APEC in 2026, also called for greater cooperation in frontier fields like artificial intelligence and quantum information.On Friday, Xi told the APEC CEO Summit that attempts to reduce global economic interdependence was “nothing but backpedaling.”China, the world’s second biggest economy, has been grappling with challenges ranging from a prolonged housing crisis to sluggish consumption and local government debt.The country is targeting annual growth of around five percent this year, but many experts consider this ambitious given the challenges its economy is facing.

Global stock markets ended the week on a sour note Friday as traders mulled Federal Reserve Chair Jerome Powell’s comments that the US central bank was not on a preset path to cut interest rates. After Powell indicated the Fed was in no hurry to cut rates as it monitors inflation’s downward trajectory, Wall Street turned red, with all three major indices closing lower.”Certainly Powell’s speech has triggered some skepticism about the path of rates, with potentially December being a skip instead of another cut,” Edward Jones senior investment strategist Angelo Kourkafas told AFP.”But we do have another inflation and jobs report before that, so there is still a good sense we might see another rate cut in December,” he added.Leading the way down were a clutch of vaccine-makers’ stocks after US President-elect Donald Trump indicated he would appoint vaccine skeptic Robert F. Kennedy Jr. as his health secretary.Tokyo ended the day just in the green, with other major Asian markets stalling.In Europe, London was off just 0.1 percent, digesting disappointing growth data. Frankfurt and Paris also ended in the red to round off a painful week fueled by worries over another disruptive China-US trade war under Trump.Disappointing US retail sales in October did not help overall sentiment as oil prices also drifted down.- No hurry to cut -In a speech Thursday, Powell said that “the economy is not sending any signals that we need to be in a hurry to lower rates.”While the US central bank is expected to cut interest rates again next month, investors are scaling back their bets on how many cuts will be made next year.Investors are worried tax cuts and tariffs planned by Trump could reignite inflation.”The (Trump) administration’s renewed focus on tariffs could weigh heavily on currencies of trade-exposed economies, particularly those in Asia and the eurozone,” said Charu Chanana, chief investment strategist at Saxo Markets.European markets stuttered as the European Commission predicted economic growth would pick up slightly and inflation would keep falling in the eurozone next year, but warned of growing risks linked to geopolitical tensions.In Asia, Shanghai shed 1.5 percent but Tokyo rose despite data showing a slowdown in Japanese economic growth.China’s retail sales beat expectations, expanding 4.8 percent year-on-year in October, according to data published Friday, lifting hopes for the world’s number two economy. It was the best performance since February.The figures provided optimism that the country’s consumers are becoming more confident and follow a slew of measures out of Beijing in recent weeks aimed at kickstarting growth.In the cryptocurrency markets, Bitcoin clambered back above $90,000, two days after striking a record high of $93,462.Observers have predicted it may soon break the $100,000 mark after Trump’s pro-crypto comments during his election campaign.- Key figures around 2130 GMT -New York – Dow: DOWN 0.7 percent at 43,444.99 points (close)New York – S&P 500: DOWN 1.3 percent at 5,870.62 (close)New York – Nasdaq Composite: DOWN 2.2 percent at 18,680.12 (close)London – FTSE 100: DOWN 0.1 percent at 8,063.61 (close) Paris – CAC 40: DOWN 0.6 percent at 7,269.63 (close)Frankfurt – DAX: DOWN 0.3 percent at 19,210.81 (close)Tokyo – Nikkei 225: UP 0.3 percent at 38,642.91 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 19,426.34 (close)Shanghai – Composite: DOWN 1.5 percent at 3,330. 73 (close)Euro/dollar: UP at $1.0536 from $1.0524Pound/dollar: DOWN at $1.2611 from $1.2662Dollar/yen: DOWN at 154.32 yen from 156.28 yen on ThursdayEuro/pound: UP at 83.52 pence from 83.11 penceWest Texas Intermediate: DOWN 2.5 percent at $67.02 per barrelBrent North Sea Crude: DOWN 2.1 percent at $71.04 per barrel

Japan’s growth slowed in the third quarter after warnings of a major earthquake hit activity, official data showed Friday, as Prime Minister Shigeru Ishiba seeks to jumpstart the world’s fourth-largest economy.A “megaquake” alert in August and one of the fiercest typhoons in decades resulted in gross domestic product (GDP) expanding just 0.2 percent between July and September from the previous quarter, according to preliminary government data.The data met market expectations, but marked a slowdown from a revised 0.5 percent in the previous three months. On an annualised basis, GDP grew 0.9 percent, much slower than the revised 2.2 percent growth in April-June.The government is expecting a “gradual recovery” of the economy — beset for decades by stagnation and harmful deflation — chief cabinet secretary Yoshimasa Hayashi said on Friday.”Our country is at an important crossroads as it’s about to transition into a growth-based economy driven by wage hikes and investment,” he told a regular briefing.”To realise that, we will implement all possible economic and fiscal policies, including a package currently under consideration.”Ishiba kept his job in a parliamentary vote on Monday, despite last month leading the ruling coalition to its worst general election result in 15 years.The 67-year-old has unveiled plans for the government to support the AI and semiconductor sectors with more than 10 trillion yen ($64 billion) by 2030.He also hopes to win over opposition parties this month to pass a draft supplementary budget for a new stimulus package — reportedly to include cash handouts for low-income households and families.Higher spending on cars, as production resumed after disruption related to a domestic testing scandal, helped boost output during the quarter, analysts said.Wage hikes and temporary income tax cuts were also positive factors.But this was tempered by Typhoon Shanshan and the “megaquake” alert, issued — and later lifted — by the weather agency in August for the first time under a new warning system.This prompted consumers to stock up on emergency supplies, leading to shortages of rice in supermarkets, while thousands cancelled hotel bookings in one of Japan’s biggest holiday periods.Factory production was also hit when Typhoon Shanshan hit in the same month, forcing the cancellation of trains and flights.Stefan Angrick, Moody’s Analytics economist, called the challenges facing Japan “substantial”, especially with Donald Trump’s return as US president presaging a “tumultuous” time for global trade.”Wage growth is improving but is not yet strong enough to keep up with inflation, stretching household finances. Weak external demand and domestic production issues will weigh down exports,” Angrick said.A further slide in the yen against the dollar might prompt the Bank of Japan to raise interest rates before year’s end despite the poor run of data, he added.jug-tmo-kaf-stu/tym

China’s retail sales last month grew at their fastest clip since the start of the year, official figures showed Friday, an encouraging sign for Beijing as it looks to boost sluggish consumption.Officials have since late September unveiled a slew of measures including interest rate cuts and debt swaps intended to boost activity in the world’s second-largest economy, which has struggled to regain momentum since the pandemic.Among the woes facing policymakers are slumping domestic consumption resulting in deflationary pressure, a property sector bust and geopolitically fraught trade disputes.Retail sales expanded 4.8 percent on-year in October, the National Bureau of Statistics (NBS) said, speeding up from the 3.2 percent in September.The reading also significantly outperformed the 3.8 percent forecast in a Bloomberg survey of analysts and represents the best reading since February.Figures also showed the national urban unemployment rate fell slightly to five percent from 5.1 percent in September.However, industrial production growth edged down to 5.3 percent in October, the NBS figures showed, from 5.4 percent the previous month.The NBS said in a statement that in October “positive factors accumulated and increased and the national economy was stable, with progress and growth”.Beijing is pushing for an official national growth target this year of around five percent, a goal most economists believe it will narrowly miss.But recent weeks have seen officials announce their most aggressive measures in years in a bid to breathe fresh life into the economy.The new policies have included a debt swap programme to ease the burden on local governments, mortgage rate cuts and the elimination of certain restrictions on home purchases.”The economy stabilised in October because of the policy shift in late September,” wrote Zhang Zhiwei, President and Chief Economist of Pinpoint Asset Management, in a note.But Zhang warned that the “property sector has not turned around”.The market is now turning its attention to the new year, with prospects of an intensified trade war under US president-elect Donald Trump, Zhang added.”The key question is how much fiscal stimulus China will run to counter potential export slowdown.”

Japan’s growth slowed in the third quarter, official data showed Friday, as Prime Minister Shigeru Ishiba seeks to jumpstart the world’s fourth-largest economy.One of the fiercest typhoons to hit Japan in decades and a government “megaquake” warning weighed on factory production and other economic activity this summer.That dragged on gross domestic product (GDP) and the country saw growth of 0.2 percent between July and September, according to a preliminary reading by the Cabinet Office.The data met market expectations, but marked a slowdown from a revised 0.5 percent in the previous three months. Compared with the same period a year earlier GDP grew 0.9 percent, much slower than the downwardly revised 2.2 percent in April-June.The government is expecting a “gradual recovery” of the economy — beset for decades by stagnation and harmful deflation — chief cabinet secretary Yoshimasa Hayashi said on Friday.”Our country is at an important crossroads as it’s about to transition into a growth-based economy driven by wage hikes and investment,” he told a regular briefing.”To realise that, we will implement all possible economic and fiscal policies, including a package currently under consideration.”Ishiba kept his job in a parliamentary vote on Monday, despite last month leading the ruling coalition to its worst general election result in 15 years.The 67-year-old has unveiled plans for the government to support the AI and semiconductor sectors with more than 10 trillion yen ($64 billion) by 2030.He also hopes to win over opposition parties this month to pass a draft supplementary budget for a new stimulus package — reportedly to include cash handouts for low-income households and families.Higher spending on cars, as production resumed after disruption related to a domestic testing scandal, helped boost output during the quarter, analysts said.Wage hikes and temporary income tax cuts were also positive factors.But this was tempered by Typhoon Shanshan and the “megaquake” alert — issued after a magnitude 7.1 jolt to ready people for the risk of an even bigger quake that ultimately did not occur.Factory production was also hit when Shanshan descended in late August, forcing the cancellation of trains and flights.Earlier the same month, “tourism demand was weighed down” by the megaquake alert, issued by the weather agency for the first time under a new warning system.This prompted consumers to stock up on emergency supplies, leading to shortages of rice in supermarkets, while thousands cancelled holidays during the week-long advisory.”The economy lost momentum in the third quarter and we think that GDP growth will remain around trend over the coming quarters,” Marcel Thieliant, head of Asia-Pacific at Capital Economics, said in a note on Friday.However, the Bank of Japan “will be encouraged by the strength in consumer spending and we still expect it to press ahead with another rate hike at its meeting next month”, he predicted.

US President Joe Biden and his Chinese counterpart Xi Jinping arrived in Peru Thursday for an Asia-Pacific summit where they will likely meet for the last time under a cloud of diplomatic uncertainty cast by Donald Trump’s election victory.Air Force One touched down at an air base outside Lima as Xi, who landed hours earlier, was received at the presidential palace by Peruvian leader Dina Boluarte on the eve of a two-day heads-of-state meeting of the Asia-Pacific Economic Cooperation (APEC) grouping.Biden and Xi are due to hold talks Saturday, in what a US administration official said will probably be the last face-to-face between the sitting leaders of the world’s largest economies before Trump is sworn in in January.With the Republican president-elect having signaled a confrontational approach to Beijing for his second term, the bilateral meeting will be a closely watched affair.APEC, created in 1989 with the goal of regional trade liberalization, brings together 21 economies that jointly represent about 60 percent of world GDP and over 40 percent of global commerce.The summit program was to focus on trade and investment for what proponents dubbed inclusive growth.But uncertainty over Trump’s next moves now clouds the agenda — as it does for the COP29 climate talks underway in Azerbaijan, and a G20 summit in Rio de Janeiro next week.On Thursday, APEC ministers, including US Secretary of State Antony Blinken, held their own meeting behind closed doors in Lima to set the tone for the two-day summit to follow.Trump announced this week he will replace Blinken with Senator Marco Rubio, a China hawk.- ‘America First’ -The summit will also be attended by Japan, South Korea, Canada, Australia and Indonesia, among others.President Vladimir Putin of APEC member Russia will not be present.Trump’s “America First” agenda is based on protectionist trade policies, increased domestic fossil fuel extraction, and avoiding foreign conflicts.It threatens alliances Biden has built on issues ranging from the wars in Ukraine and the Middle East to climate change and commerce.The Republican president-elect has threatened tariffs of up to 60 percent on imports of Chinese goods to even out what he says is an imbalance in bilateral trade.China is grappling with a prolonged housing crisis and sluggish consumption that can only be made worse by a new trade war with Washington.But economists say punitive levies would also harm the American economy, and others further afield.- ‘Criminals and drugs’ -China is an ally of Western pariahs Russia and North Korea, and is building up its own military capacity while ramping up pressure on Taiwan, which it claims as part of its territory.It is also expanding its reach into Latin America through infrastructure and other projects under its Belt and Road Initiative.Xi on Thursday inaugurated South America’s first Chinese-funded port, in Chancay, north of Lima.He was accompanied for the virtual ceremony by Boluarte, who praised China for playing “a major role in the growth of our economy.”At the same time, the top US diplomat for Latin America, Brian Nichols, warned in Lima that Latin American nations must be vigilant on Chinese investment.Biden will on Friday meet Japanese Prime Minister Shigeru Ishiba and South Korean President Yoon Suk Yeol — key US allies in Asia.Traveling with Biden, National Security Advisor Jake Sullivan said the partner nations will announce the creation of a secretariat to ensure the trilateral alliance “will be an enduring feature of American policy in the Indo-Pacific going forward.”China isn’t the only country in Trump’s economic crosshairs.The incoming US leader has threatened tariffs of 25 percent or more on goods coming from Mexico — another APEC member — unless it stops an “onslaught of criminals and drugs” crossing the border.Peru has deployed more than 13,000 members of the armed forces to keep the peace in Lima as transport workers and shop owners protested against crime and perceived government neglect.

Chinese President Xi Jinping on Thursday inaugurated Latin America’s first Beijing-funded port in Chancay, Peru — a symbol of the Asian superpower’s growing influence on the continent as it prepares to face off with a new Donald Trump administration.The $3.5-billion complex, about 50 miles (80 kilometers) north of Lima, is meant to serve as a hub for Chinese trade as the country is under threat of major tariff hikes once Trump reenters the White House for a second term.The port was officially opened in a ceremony overseen virtually by Xi and Peruvian counterpart Dina Boluarte from Lima, where they will attend an Asia-Pacific Economic Cooperation (APEC) summit on Friday and Saturday.”China plays a major role in the growth of our economy,” Boluarte said at the event, even as a US official warned Latin American nations should be vigilant on Chinese investment.”We believe it is essential that countries across the hemisphere ensure that PRC (People’s Republic of China) economic activities respect local laws as well as safeguard human rights and environmental protections,” Brian Nichols, the top US diplomat for Latin America, said in Lima.Xi, for his part, said the port would help “promote connectivity” between South America and China.”We are witnessing… the birth of a new land-sea channel between Asia and Latin America in the new era,” Xi saidUS President Joe Biden also arrived Thursday to attend the APEC summit in Peru, which Nichols described as a “crucial ally.”- Belt and Road -Peru — one of Latin America’s fastest-growing economies over the past decade — is China’s fourth-largest Latin American trading partner, with bilateral flows of nearly $36 billion in 2023.Chancay port will also serve Chile, Colombia, Ecuador and other South American countries, allowing them to skirt ports in Mexico and the United States as they trade with Asia.Chancay is the latest addition to a vast collection of railways, highways and other infrastructure projects built under China’s massive Belt and Road Initiative to stimulate trade and boost Beijing’s political clout.Hong Kong-listed Cosco Shipping Ports, which owns 60 percent of the port, has a 30-year concession to operate the terminal and has forecast it will handle up to a million containers in its first year of operation.Cosco Shipping Ports is a subsidiary of China’s COSCO Shipping Corporation.The port’s maximum depth is 17.8 meters (58.4 feet), allowing it to handle the world’s biggest container ships.Chancay, a fishing town of some 50,000 inhabitants, was chosen for its strategic location in the heart of South America.It is now expected to become a major hub for imports of Asian electronics, textiles and other consumer goods and for the export of minerals — including lithium and copper.Xi described the complex as South America’s “first smart and green port.”Once completed, he said, it will reduce the transit between China and Peru by more than 10 days, and cut logistics costs by over 20 percent.burs-mlr/acb

US stocks slipped Thursday as investors digested comments from Federal Reserve Chair Jerome Powell, while worries over Donald Trump’s presidency clouded optimism.Bitcoin dipped below the $90,000 level after striking a record of $93,462 on Wednesday. Observers are expecting it to soon top $100,000 following pro-crypto pledges from the US president-elect.Investors were looking to a speech Thursday by Powell for indications about future interest rate cuts, but his remarks cooled expectations of a December reduction.Powell told a conference in Texas that the path of rate cuts “is not preset,” adding that “the economy is not sending any signals that we need to be in a hurry to lower rates.””The inflation data this week and the Fed Chair Powell’s comments today have pushed down the expectations of a rate cut in December,” Ventura Wealth Management chief investment officer Tom Cahill told AFP. “That’s what’s troubling the market.”US consumer inflation data released on Wednesday showed that consumer prices rose in line with forecasts.With Trump having vowed to impose across-the-board tariffs, that could boost inflation and give the Fed reason to pause cutting interest rates.”As things stand, the market is cautiously pricing in just 50 basis points of easing by mid-2025 — a marked revision from before the US election” when it expected more cuts, said City Index and FOREX.com analyst Fawad Razaqzada.Meanwhile data released on Thursday showed upticks in wholesale price inflation, which could also give the Fed reason to reevaluate the need to cut rates further.”The higher interest rates, I think, are kind of acting as a headwind of sorts for the equity market right now,” said Patrick O’Hare of Briefing.com.Wall Street’s main indices opened with modest gains, but then dipped lower.European markets fared better, with updated data confirming the eurozone recorded 0.4 percent growth in the third quarter.Tokyo, Hong Kong and Shanghai all fell on Thursday as concerns over another possible China-US trade war, and Beijing’s economic woes, weighed on Asian markets.The greenback topped 155 yen for the first time since July, putting focus on Japanese authorities who have said they are prepared to support their unit if they considered moves to be one-sided or speculative.In company news, shares in Disney closed 6.2 percent up after the entertainment giant beat expectations in its latest quarterly earnings.While its net profits dipped, its earnings per share excluding exceptional items beat analyst expectations, as did a six percent increase in sales.Shares in Meta were barely dented after the EU fined it almost 800 million euros ($840 million) on Thursday for breaching antitrust rules by giving users of its Facebook social network automatic access to classified ads service Facebook Marketplace. Meta said it would appeal the decision.Shares in struggling British fashion house Burberry rose around 20 percent on London’s FTSE 250 as the group announced cost-cutting plans after posting a loss. – Key figures around 2140 GMT -New York – Dow: DOWN 0.5 percent at 43,750.86 points (close)New York – S&P 500: DOWN 0.6 percent at 5,949.17 (close)New York – Nasdaq Composite: DOWN 0.6 percent at 19,107.65 (close)London – FTSE 100: UP 0.5 percent at 8,071 (close)Paris – CAC 40: UP 1.3 percent at 7,311.80 (close)Frankfurt – DAX: UP 1.4 percent at 19,263.70 (close)Tokyo – Nikkei 225: DOWN 0.5 percent at 38,535.70 (close)Hong Kong – Hang Seng Index: DOWN 2.0 percent at 19,435.81 (close)Shanghai – Composite: DOWN 1.7 percent at 3,379.84 (close)Dollar/yen: UP at 156.28 yen from 155.51 yen on WednesdayEuro/dollar: DOWN at $1.0524 from $1.0564Pound/dollar: DOWN at $1.2662 from $1.2710Euro/pound: FLAT at 83.11 pence from 83.11 penceWest Texas Intermediate: UP 0.4 percent at $68.70 per barrelBrent North Sea Crude: UP 0.4 percent at $72.56 per barrelburs-rl/giv/bys/des

Chinese President Xi Jinping arrived in Peru Thursday for an Asia-Pacific summit where he will meet US counterpart Joe Biden under the shadow of a looming trade war with the incoming administration of Donald Trump.Xi arrived at an air base outside the capital Lima hours before the expected touchdown of Biden on the eve of a two-day heads-of-state meeting of the Asia-Pacific Economic Cooperation (APEC) grouping.Biden and Xi are due to hold a bilateral Saturday, in what a US administration official said will likely be the last meeting between the sitting leaders of the world’s largest economies before Biden hands the reins back to Trump.APEC, created in 1989 with the goal of regional trade liberalization, brings together 21 economies that jointly represent about 60 percent of world GDP and over 40 percent of global commerce.On Thursday, APEC ministers, including US Secretary of State Antony Blinken, held their own meeting behind closed doors in Lima to set the tone for the two-day summit to follow.The APEC program was to focus on trade and investment for what proponents dubbed inclusive growth.But uncertainty over Trump’s next moves following his November 5 election victory now clouds the agenda — as it does for the COP29 climate talks underway in Azerbaijan, and a G20 summit in Rio de Janeiro next week.With the US president-elect having signaled a confrontational approach to Beijing for his second term in the White House, Saturday’s face-to-face between Xi and Biden will be a closely-watched affair.- ‘America First’ -The summit will also be attended by Japan, South Korea, Canada, Australia and Indonesia, among others.President Vladimir Putin of APEC member Russia will not attend.Trump’s “America First” agenda is characterized by protectionist stances on global commerce, fossil fuel extraction and foreign conflicts.It threatens alliances Biden had built on issues ranging from the wars in Ukraine and the Middle East to climate change and trade.The Republican president-elect has threatened tariffs of up to 60 percent on imports of Chinese goods to even out what he says is an imbalance in bilateral trade.China is grappling with a prolonged housing crisis and sluggish consumption that can only be made worse by a new trade war with Washington.But economists say punitive levies will also harm the American economy and affect trade with its neighbors and with Europe.- ‘Criminals and drugs’ -China is an ally of Western pariahs Russia and North Korea, and is building up its own military capacity while ramping up pressure on Taiwan, which it claims as part of its territory.It is also expanding its reach into Latin America through infrastructure and other projects under its Belt and Road Initiative.Xi will on Thursday inaugurate South America’s first Chinese-funded port, in Chancay, north of Lima.Xi, in an article penned for the official El Peruano newspaper, said Beijing was ready to work with Lima towards “true multilateralism” and “a universally beneficial and inclusive economic globalization.”Biden, meanwhile, will on Friday meet Japanese Prime Minister Shigeru Ishiba and South Korean President Yoon Suk Yeol — key US allies in Asia.Before leaving Tokyo for the summit, Ishiba said the talks would seek to “confirm and enhance” trilateral cooperation.As for China, “there are issues between the two countries. But there are also issues that we must work together on. I would like to have a frank exchange of opinions on these issues,” said Ishiba.China isn’t the only country in Trump’s economic crosshairs.The incoming US leader has threatened tariffs of 25 percent or more on goods coming from Mexico — another APEC member — unless it stops an “onslaught of criminals and drugs” crossing the border.Peru has deployed more than 13,000 members of the armed forces to keep the peace in Lima as transport workers and shop owners protested against crime and perceived government neglect.Several dozen demonstrators gathered near the summit venue Thursday.