The Gyeongju Declaration Including AI Issue Adopted by APEC Leaders

Asia-Pacific Economic Co-operation (APEC) summit, took place at Gyeongju Hwabaek International Convention Center, South Korea, on Oct. 31 to Nov. 1, 2025. The summit was held at a time when the United States and China were at odds over tariffs and trade issues, and global trade dynamics were shifting dramatically, driven largely by the Trump administration’s aggressive tariff policies.
The APEC adopted a joint declaration on Oct. 31, as they concluded the two-day gathering for discussions on growth and prosperity.
Gyeongju Declaration covered APEC’s key agenda items, from trade and investment to digital innovation and inclusive growth, under the theme of “Connectivity, Innovation, and Prosperity.” The declaration, for the first time, recognizes cultural and creative industries as a new growth driver for the Asia-Pacific region and reflects the 21-member economies’ shared understanding and commitment to cooperation on artificial intelligence (AI) and demographic changes, the presidential office said. He added, “Through overnight negotiations up to the day of the summit, we’ve striven to narrow differences among APEC members, including the U.S., China, Japan and Russia, and ultimately succeeded in reaching agreement on the Gyeongju Declaration and two other key outcome documents.”
The declaration calls on member nations, which represent more than half of the global economy, to work together to promote cultural and creative industries, which can help spur economic growth. There had been concerns about a potential failure to adopt a joint declaration, as happened during the 2018 APEC summit in Papua New Guinea during Trump’s first term, when the U.S. and China failed to reach agreement on WTO reforms and left the host nation to issue only a chair’s statement.
Korea also sought to address the region’s shared challenges, including the development of artificial intelligence (AI) and demographic changes. The AI Initiative adopted at the summit marked the first leaders-level agreement on AI involving both the U.S. and China, according to the presidential office.
The AI Initiative adopted at the summit marked the first leaders-level agreement on AI involving both the U.S. and China.
Reflecting the stark reality of shifting global orders, however, this year’s leaders’ declaration omitted direct mention of the World Trade Organization (WTO), which was typically included in previous APEC leaders’ declarations. Instead, a compromise text was incorporated into the ministerial-level joint statement.
In their declaration, the APEC leaders said “robust” trade and investment were vital to the region’s growth, and stressed their commitment to “deepening economic cooperation to navigate the evolving global environment”. APEC, whose 21 members include the U.S., China, Japan and South Korea, will advance economic integration that is “market-driven” and enhance “experience sharing, capacity building, business engagement”, the declaration said.
The leaders also pledged regional cooperation on artificial intelligence and demographic challenges arising from falling birth rates.
The Gyeongju APEC summit also served as a venue for global diplomacy, hosting the first face-to-face meeting between Trump and Chinese President Xi Jinping since Trump’s second term amid their escalating trade war. During the talks, the two leaders reached a dramatic “ceasefire” agreement and aligned on the possibility of future mutual visits.
President Lee Jae Myung wrapped up the APEC summit with some tangible results, as the event was widely regarded as the biggest diplomatic test since he took office in June.
Lee engaged with world leaders to discuss pressing security and economic issues through pragmatic diplomatic approaches, including one-on-one talks with Trump, Xi and Japanese Prime Minister Sanae Takaichi.
Chinese President Xi Jinping capitalized on Trump’s absence. He emphasized, “We should practice true multilateralism and strengthen the authority of the WTO-centered trade system,” amplifying China’s presence. The irony of President Xi, who oversees a Communist Party-controlled economy, advocating free trade, is expected to grow at next year’s Shenzhen APEC.
Politically, this Gyeongju APEC highlighted the absence of U.S. leadership. President Trump arrived in Korea but returned to the U.S. just before the main session, leaving Finance Minister Scott Bessent to oppose the “free trade and open economy” agenda.
Since its inception in 1989 in Australia, APEC has championed free trade and investment expansion as core values, but the Gyeongju summit became a turning point. For the first time, the “Gyeongju Declaration” omitted the terms “free trade” or “WTO,” retaining only the phrase, “We recognize that the global trade system faces significant challenges.” This symbolized the Trump administration’s protectionist stance even on the Asian stage. Additionally, due to the U.S.’s avoidance of leadership, no concrete agreements were reached on key agendas like supply chain stability, digital trade, or decarbonization.
Speaking before the declaration, South Korean President Lee Jae Myung, the summit’s host, warned that economies were navigating an era of mounting global uncertainty. “The free trade system is experiencing strong turbulence, global economic uncertainty is deepening, and momentum for trade and investment is weakening,” Lee said.

The Lee Jae Myung government, hosting its first APEC just four months after its launch, is credited with performing relatively well despite challenges. President Lee negotiated a $35 billion investment issue with President Trump during their summit, securing a compromise plan to implement $20 billion annually in stages. Additionally, regarding South Korea’s long-sought nuclear submarine possession, President Trump gave principle approval contingent on domestic U.S. construction. The first summits with Chinese President Xi Jinping and Japanese Prime Minister Sanae Takaichi also proceeded smoothly.
The Gyeongju APEC is also evaluated as a platform to promote Korean culture globally. The city’s unique structure, with ancient tombs in its center, impressed attending leaders and businesspeople. Chinese President Xi Jinping mentioned Gyeongju’s Hwangnam bread during a dinner, while the White House spokesperson’s visit to Hwangnidan-gil to purchase K-beauty products and traditional crafts trended on social media. Scenes of leaders’ spouses visiting Bulguksa Temple with First Lady Kim Hye-kyung were also covered by foreign media.
Attending the gathering are heads of state and representatives from 21 APEC member states including the U.S., China, Japan and Canada. As the leader of the chair country, President Lee Jae Myung on the morning of Oct. 31 greeted his counterparts from abroad at the summit venue of Gyeongju Hwabaek International Convention Center.
U.S. President Donald Trump and Chinese President Xi Jinping both came as state guests. Thus President Lee is Korea’s first head of state to receive two such visitors in a city outside of Seoul. President Trump missed the main summit, flying home after bilateral talks with his Korean and Chinese counterparts. President Xi, however, will attend the event and hold talks with President Lee in his first visit to Korea in 11 years.
Trump departed South Korea on 2 days before the opening of the session, after his talks with Xi Jinping, their first face-to-face meeting since 2019, leaving the Chinese leader to take centre stage at the two-day economic forum.
Xi, who has cast China as a defender of multilateralism and free trade, told the opening of the event on Friday that countries needed to work together as they faced an “increasingly complex and volatile” global environment.
Xi, who a day earlier held meetings with his Japanese, Canadian and Thai counterparts, later on Nov. 1 joined Lee for their first bilateral summit since the South Korean leader’s election in a snap poll in June.
In opening remarks, Lee expressed hope that South Korea and China would “strengthen strategic communication” to resume dialogue with nuclear-armed North Korea, which has repeatedly dismissed Seoul’s efforts at rapprochement. “The importance of peace and stability in the region cannot be overstated,” Lee said.
Lee also called for the sides to work together for “shared prosperity” as they moved from a “vertical” model of economic ties to a “horizontal and mutually beneficial one”.
Xi described China and South Korea as “important neighbours that cannot be moved apart” and “inseparable cooperation partners”, as he called on the sides to manage their differences through “friendly consultations”.
Lee has pledged to pursue a more balanced policy towards China than his conservative predecessor, Yoon Suk Yeol, who was impeached for briefly declaring martial law last year.
South Korea, like other countries in the region, has had to walk a fine line between the U.S., its security guarantor, and China, its biggest trading partner.
The U.S. stations about 28,500 troops in South Korea and is treaty-bound to come to its defence if it is attacked, a legacy of Washington’s support for the country in its 1950-53 war with North Korea.
South Korea sent nearly one-fifth of its exports to China in 2024, with the value of its shipments hitting $133 billion.
The U.S. was the country’s second-largest export destination, with shipments of $127.8 billion.
South Korea’s relations with China have been tested by a series of disputes in recent years, most notably a spat over the U.S.’s 2017 deployment of a THAAD missile defence system in the country.★

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