How U.S.-China tensions leave countries like South Korea stuck in the middle : NPR

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 away from the APEC host city of Gyeongju, for just an hour and 40 minutes.

Despite the brevity of the much-anticipated rendezvous — and Trump’s absence in the main APEC Economic Leaders’ Summit — the countries’ trade dispute 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 show at APEC

As the chair of this year’s APEC, President Lee Jae Myung of South Korea advocated for the multilateral forum’s role in spite of “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.

But some experts question how viable and concrete such cooperation can be when the U.S. is shifting from a supporter of trade liberalism to an increasingly protectionist and transactional position.

It was “because of benign U.S. leadership” and “a clear lack of security concerns” in the post-Cold War era that APEC could set the agenda for the global trade regime, says Jeffrey Robertson, an associate professor of Diplomatic Studies at Yonsei University in Seoul.

Transforming the institution to reflect the new global order is difficult for comparatively small players in the region, he adds, “because they’re caught between the United States and China.”

President Donald Trump, left, and Chinese President Xi Jinping shake hands before their meeting at Gimhae International Airport in Busan, South Korea, Thursday, Oct. 30, 2025.

Mark Schiefelbein/AP/AP

hide caption

toggle caption

Mark Schiefelbein/AP/AP

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 test.

Its relationship with China suffered in 2016 when South Korea decided to host a U.S. missile defense system known as THAAD. China retaliated with measures aimed at the country’s tourism, retail and entertainment industries — many of which are still in effect.

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.

South Koreans increasingly see the U.S. as the most important country for their country’s economy, in addition to security, surveys show. 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 a lowered tariff on cars and auto parts, South Korea agreed to invest 350 billion dollars in the U.S. over a period of 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 advancement accelerated. Once a manufacturing subcontractor of South Korean companies, China has now become their global rival in key industries like EV and electronics.

Against this backdrop, Koreans’ sentiment toward China is souring, particularly among younger generations. There have been anti-China rallies in downtown Seoul in recent months, where protesters chanted racist slurs and made unsubstantiated claims of Chinese inference in South Korean politics. Some marched in Gyeongju this week, chanting “CCP [Chinese Communist Party] out.”

Those tensions were on show at APEC, where South Korea’s President Lee met with Chinese President Xi. Before that meeting, the Chinese ambassador to Korea, Dai Bing, warned of “regression” in the 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.” That statement came in response to President Trump’s recent approval of Seoul’s push for a nuclear-powered submarine. Separately, earlier in October, China imposed sanctions on five U.S. subsidiaries of Hanwha Ocean, a South Korean shipbuilder that owns the main shipyards in Philadelphia.

At their bilateral summit, Lee and Xi were both positive about their countries’ relations, reaffirming their commitment to continued, stable economic cooperation. Lee’s national security advisor Wi Sung-lac called the meeting a “comprehensive restoration” of relations.

However, there were tensions below the surface. Wi Sung-lac revealed no immediate progress on the lingering sanctions over THAAD, and sidestepped giving a direct answer on the submarine issue. When asked about the recent sanctions on Hanwha Ocean, he said he expected it to be resolved when the U.S.-China trade dispute is resolved.