Members of the Asia-Pacific Economic Cooperation have been urged to promote free trade, liberalize investment and jointly pursue sustainable development and shared prosperity, delegates heard at the APEC CEO Summit in South Korea on Wednesday.

"APEC has led the way in free trade and investment liberalization over the past years, driving economic growth in the region," South Korean President Lee Jae-myung said at the meeting's opening ceremony in Gyeongju, North Gyeongsang Province.

As this year's chair, South Korea is hosting the APEC Economic Leaders' Week from Monday to Saturday, featuring the business-focused CEO Summit through Friday and the Economic Leaders' Meeting on Friday and Saturday. The theme of the gathering is "Building a Sustainable Tomorrow".

"We must work together," Lee said, adding that cooperation among APEC economies is important to realizing sustainable development and ensuring the benefits of development are shared equitably.

An artificial intelligence initiative will also be proposed during the leaders' meeting, with a vision of "AI for All" to take root as the new normal within APEC, he said.

Marking South Korea's first time hosting an APEC event in 20 years, Lee said the global landscape has changed dramatically since the 2005 Busan meeting, with protectionism and inward-looking policies resurging. He reaffirmed his country's commitment to multilateral cooperation to address today's shared challenges.

United States President Donald Trump, speaking at the event, discussed the strong growth prospects of the US economy and later held bilateral talks with Lee.

Global challenges

Organized by the Korea Chamber of Commerce and Industry, the APEC CEO Summit brings together more than 1,700 business leaders from 21 member economies to discuss global economic challenges, artificial intelligence, digital transformation and carbon neutrality under the theme "Bridge, Business, Beyond".

Participants include top executives from leading global companies, such as Chinese battery maker CATL, pharmaceutical company Mebo, social media app TikTok, and US technology companies including Nvidia, Microsoft and Meta.

Marking the summit's 30th anniversary, Chey Tae-won, chairman of both the Korea Chamber of Commerce and Industry and South Korean conglomerate SK Group, said it is important for businesses in the Asia-Pacific region to enhance cooperation amid global challenges.

Deeper trade and investment ties among APEC members have been fundamental to the region's prosperity, he said.

"The global economy faces rapid changes and difficult challenges, supply chains are disrupted, and the boundaries of technology are shaken. That is exactly why we should move forward," he said.

Noting that the summit will focus on fostering connections, innovation and sustainability, Chey said a multiplier effect can be achieved if APEC continues its cooperation and solidarity.

At a session titled "Global Economic Issues and Challenges", OECD Secretary-General Mathias Cormann urged APEC members to use the meetings to resolve trade tensions through dialogue, warning that policy uncertainty has dampened growth, raised costs and weakened investment.

Citing OECD projections, Cormann said global growth is expected to reach 3.2 percent this year before slowing to 2.9 percent next year.

"If global trade contracts, the Asia-Pacific region — where intermediate goods account for a high share in global supply chains — suffers the biggest blow," he said.

Choi Pil-soo, a professor of Chinese trade and commerce at Sejong University in Seoul, told China Daily that APEC economies have enjoyed shared development under the framework of trade rather than war, contributing not only to economic prosperity but also to peace.

As this free trade system now faces challenges from US tariff policies, Choi said it is important for Washington to stay within the framework as much as possible.

Any trade agreement between one country and the United States should not come at the expense of a third country, he said, warning that such practices could undermine the global trade system built on the World Trade Organization's most-favored-nation principle, which requires members to treat all partners equally and avoid discriminatory trade measures.

Contact the writers at kelly@chinadailyapac.com