South Korea to court China’s Xi Jinping with state summit after APEC

Chinese President Xi Jinping will conclude his three-day visit to South Korea on Saturday, hosted by President Lee Jae-myung. Lee, a newly elected U.S. ally, has pledged to balance Seoul’s relations between Washington and Beijing.

Much is at stake for Lee, who took office in June after his hardline predecessor was ousted following a failed attempt to impose martial law. He faces the dual challenge of revitalizing South Korea’s export-driven economy while easing tensions with North Korea amid intensifying U.S.-China rivalry.

Earlier this week, Lee hastily hosted U.S. President Donald Trump for a state visit, showering him with gifts and praise. The two leaders later announced a surprise trade deal aimed at reducing U.S. tariffs in exchange for billions of dollars in South Korean investments in America.

On Saturday, Lee is set to host similar high-profile events for Xi in the ancient city of Gyeongju on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum, including a summit meeting and a state dinner. This marks Xi’s first visit to South Korea in 11 years.

Seoul remains a key U.S. military ally, hosting thousands of American troops and relying on Washington’s nuclear umbrella for protection against a nuclear-armed North Korea. Yet its economy is deeply intertwined not only with the United States but also with China—creating ongoing strategic and economic dilemmas for Seoul.

Lee’s office said he and Xi will discuss the denuclearization of the Korean Peninsula—a diplomatic phrase referring to North Korea’s nuclear weapons program, which is banned under U.N. Security Council resolutions.

North Korea, a close military and economic partner of China, dismissed the denuclearization agenda on Saturday as an unrealistic “pipe dream.”

During his South Korea visit, Trump offered to meet North Korean leader Kim Jong Un, but Pyongyang has not issued a public response.

Ahead of APEC, Trump met Xi on Thursday, where they reached an agreement to curb U.S. tariffs on Chinese goods in exchange for Beijing cracking down on illegal fentanyl trade, resuming purchases of U.S. soybeans, and maintaining the flow of rare earth exports. Xi also held meetings with leaders of Japan, Canada, and Thailand.

In his final remarks at APEC, Xi proposed the creation of a World Artificial Intelligence Cooperation Organization, while Lee expressed hopes for greater regional collaboration on AI and demographic shifts.

A source familiar with the discussions confirmed Chinese state media reports that member countries agreed on a joint leaders’ statement and declaration addressing AI and demographic challenges.

A charm offensive?
With Trump skipping the APEC leaders’ summit this week, China positioned itself as a staunch champion of free and open trade—a role long dominated by the United States. Xi announced that China will host next year’s APEC summit in Shenzhen.

John Delury, a senior fellow at the Asia Society, noted that despite U.S. tariff pressures and uncertainty over American military commitments, Beijing has so far refrained from launching a full-fledged charm offensive toward U.S. allies such as South Korea.

“I think Beijing is still in the first phase—standing back and letting the Trump administration inflict damage on itself,” he said. “We haven’t yet seen China take major steps to capitalize on that damage.”

He added that a second phase could involve deeper outreach but also greater assertiveness from Beijing. Seoul has voiced concern over China’s rare earth export controls and has urged Beijing to lift bans on five U.S.-linked units of South Korean shipbuilder Hanwha Ocean (042660.KS). China said the restrictions were related to security risks arising from the company’s cooperation with U.S. investigations.

South Korea also hopes Xi’s visit could lead Beijing to ease long-standing curbs on Korean entertainment content—restrictions imposed after Seoul deployed the U.S.-led Terminal High Altitude Area Defense (THAAD) missile defense system in 2017.

Seoul has additionally expressed concern over Chinese-built structures in disputed waters, which Beijing claims are for fishing purposes.