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Xi-Biden summit at Apec: US expectations dip further over stalled Indo-Pacific Economic Framework

  • Janet Yellen touts ‘substantial progress’ negotiating trade section of Indo-Pacific Economic Framework, but says it ‘looks not to be complete’
  • Biggest impediment to IPEF trade pillar has come from Democrats in Biden’s own party, who argue it lacks enforceable labour standards

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Chinese President Xi Jinping waves as he arrives at San Francisco International Airport on Tuesday. Xi is visiting the US to attend the Asia-Pacific Economic Cooperation summit. Photo: Reuters
Mark Magnierin San Francisco
Already low expectations for “deliverables” at the Asia-Pacific Economic Cooperation summit in San Francisco took a further blow on the eve of Wednesday’s meeting between Xi Jinping and Joe Biden when the latter’s administration acknowledged that a key multilateral trade initiative was mired in American political infighting.
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US Treasury Secretary Janet Yellen described “substantial progress” in negotiating the trade section of the Indo-Pacific Economic Framework on Monday, the knottiest of the four IPEF pillars touted by the administration. “But it looks not to be complete, like something that is likely to require further work,” Yellen said.

The news followed modest hopes that something of consequence could come out of the Xi-Biden meeting, given the many bilateral irritants, beyond some additional communication between the two militaries and a possible healthcare initiative.

The one political win the American president could emerge with this week amid his quest for re-election is a possible deal under which China would agree to crack down on producers of ingredients used to make fentanyl.
US President Joe Biden walks on the South Lawn of the White House in Washington on Tuesday. He is expected to meet Chinese President Xi Jinping at Apec in San Francisco on Wednesday. Photo: CNP/Bloomberg
US President Joe Biden walks on the South Lawn of the White House in Washington on Tuesday. He is expected to meet Chinese President Xi Jinping at Apec in San Francisco on Wednesday. Photo: CNP/Bloomberg

Beijing has negotiated hard and is insisting on the lifting of sanctions on China’s forensic police institute and lab in return for such an agreement, sources close to the administration said. A deal, however, would likely elicit uproar among congressional Republicans quick to accuse Biden of being soft on China, they added.

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