APEC 2025: Soybean Trade Takes Center Stage as Trump Meets Xi

After a long gap of six years since their last face-to-face meeting in 2019, two major world leaders are set to meet again. Although they have been in touch via phone calls, the upcoming meeting is being seen as highly significant. This meeting is happening as part of the Asia-Pacific Economic Cooperation (APEC) summit, which is one of the most important economic forums in the world. The summit is scheduled to take place at the end of this month in South Korea, bringing together leaders from 21 countries across the Asia-Pacific region.

Geographically, the Asia-Pacific region stretches across the Pacific Ocean, including countries on both the eastern and western edges. The 21 member countries are part of a group officially known as APEC – Asia-Pacific Economic Cooperation. The summit is held annually and has been ongoing for over 30 years. The forum mainly focuses on trade issues, similar to how NATO focuses on security matters. Over the years, APEC has become one of the most influential economic organizations globally, with discussions centered around free trade, market access, and economic cooperation.

To understand the strategic importance of this meeting, it is necessary to look at the geography of the Pacific Ocean and its neighboring countries. Countries like the United States, China, Japan, Australia, and New Zealand are key participants. Russia has also been involved in APEC activities, although the participation of President Vladimir Putin in the upcoming summit is not confirmed. South Korea, located on the eastern edge of the Asian continent, is hosting this year’s summit. The country’s central location makes it an ideal venue for leaders of both superpowers to engage in dialogue.

India, despite being a major economy, is not a full member of APEC because it does not have a Pacific coastline. However, India has been actively trying to engage with the forum. Initially, when India applied for membership around 1989, its application was rejected because it had a closed economy and had not yet adopted liberalization, privatization, and globalization (LPG) reforms. By the late 1990s, India had opened up its economy, but APEC implemented a rule in 1997 to restrict new memberships, allowing only Russia to join afterward. Currently, India participates as a dialogue partner and observer, enabling limited engagement with APEC’s activities. In 2023, India was represented by Piyush Goyal at the APEC meeting held in the United States, where discussions focused on trade and open economy practices.

This year, the APEC summit has gained additional global attention because former U.S. President Donald Trump will attend, marking his first major international engagement in this forum after a long gap. He is expected to meet Chinese President Xi Jinping during the summit. Their interaction will attract worldwide attention, not only because of their past political rivalry but also due to the pressing trade issues that both countries face. This meeting is considered particularly significant as it involves major economic superpowers discussing critical trade agreements that can affect global markets.

One of the main reasons behind Trump’s participation in the summit is the soybean trade between the U.S. and China. Soybeans have emerged as a central issue in the ongoing economic relations between the two countries. China, being the largest soybean importer in the world, has reduced its purchases from the U.S. in recent years, favoring other producers such as Brazil and Argentina. This shift has put pressure on American farmers, who depend heavily on exports to China for their livelihoods. In 2025, Brazil produced approximately 163 million tons of soybeans, while the U.S. produced around 122.7 million tons. China, despite producing 20.65 million tons itself, remains the largest importer. The trade imbalance has led to economic stress among American farmers, sparking criticism and calls for policy interventions.

Trump has expressed concern over the declining soybean sales to China and has indicated his intention to negotiate terms that would allow U.S. farmers to regain their share of the market. Recently, Trump highlighted on social media that the American agricultural sector is being harmed because of China’s reluctance to purchase U.S. soybeans. To address these challenges, the Trump administration is reportedly considering financial support packages for farmers, with estimates ranging from $10 to $14 billion. These steps reflect the political and economic significance of the soybean trade, making it a top agenda item at the upcoming APEC summit.

APEC 2025 will serve as a platform for broader discussions beyond soybeans. Leaders from member countries will also discuss issues like digital economy, climate change, regional security, and strategies to remove trade barriers. With the participation of major economies like the U.S., China, Japan, Australia, and New Zealand, the summit provides an opportunity for negotiation and collaboration on multiple economic fronts. South Korea, as the host nation, has adopted the theme “Building a Sustainable Tomorrow” to emphasize long-term cooperation and sustainability in economic growth and trade policies.

The summit also reflects the geopolitical dynamics of the Asia-Pacific region. Countries like India, although not full members, are closely observing these meetings to learn from international trade practices and explore opportunities for engagement. India’s efforts to participate demonstrate its interest in integrating with the global economy and understanding mechanisms of free trade and open markets. By being a dialogue partner, India can stay informed about major policy decisions and potentially influence economic partnerships in the region.

Trump’s meeting with Xi is particularly noteworthy because it signals an attempt to resolve longstanding trade tensions. The focus on soybeans highlights how specific commodities can have a major impact on bilateral relations. China’s decision to reduce imports from the U.S. has forced American farmers to turn to alternative markets such as Brazil and Argentina, which has led to dissatisfaction within the U.S. agricultural community. The summit presents an opportunity to renegotiate trade agreements and establish a more predictable and fair framework for soybean exports, benefiting both American farmers and Chinese importers.

Historically, APEC has provided a platform for such negotiations. Past meetings have seen discussions around reducing trade barriers, improving market access, and fostering economic cooperation among member countries. This year, the meeting is expected to focus on restoring stability in the soybean trade while addressing other critical issues affecting regional and global economies. Leaders are also expected to discuss strategies for managing economic uncertainties, digital innovation, and sustainable development in the Asia-Pacific region.

The presence of high-profile leaders like Trump and Xi adds a diplomatic dimension to the economic discussions. Their meeting is anticipated to not only resolve trade disputes but also set the tone for future U.S.-China relations in the context of Asia-Pacific economic cooperation. The summit will attract international media coverage, emphasizing the importance of agricultural trade, economic partnerships, and multilateral cooperation. Given the global significance of APEC and the centrality of soybean trade, the outcomes of these discussions could have ripple effects across international markets and agricultural economies worldwide.

In conclusion, APEC 2025 in South Korea is much more than a routine economic summit. It is a strategic platform where global economic powers like the U.S. and China will discuss pressing trade issues, particularly soybean imports and exports. Trump’s attendance is driven largely by the need to secure favorable terms for American soybean farmers, who have been affected by China’s import preferences for Brazil and Argentina. The summit also highlights the importance of regional cooperation in the Asia-Pacific, the challenges of open and closed economies, and the role of multilateral organizations in shaping global trade policies. While India participates as a dialogue partner, the focus remains on resolving high-stakes trade conflicts between the two superpowers. The summit promises to be closely watched by farmers, policymakers, and economic analysts worldwide, making it one of the most critical international events of 2025.