There's more at stake than just trade at Apec meeting

China's investment in the Asia-Pacific Economic Cooperation forum is substantial, the lakeside venue in Beijing's suburbs being purpose-built at a cost of 20 billion yuan (HK$25 billion). To ensure blue skies for the leaders attending, traffic has been halved and factories shut in a 320km radius. But for the Chinese leadership, the expense and effort are incidental to the significance of the meeting and what it could potentially achieve. Hopes are high for breakthroughs in regional integration and a resetting of frayed relations.

There was cautious optimism yesterday after Tokyo issued a four-point plan on ties with Beijing, among which was a suggestion of Japanese recognition of China's claim to sovereignty of the disputed Diaoyu Islands, the lack of which has been a major sticking point. Optimism was raised that President Xi Jinping and Japanese Prime Minister Shinzo Abe would hold talks on the sidelines of Apec; media reports in Japan said a summit was in the offing. The possibility of progress when Xi and his American counterpart Barack Obama meet also rose after China dropped its intention to push the Free Trade Area of the Asia-Pacific, a rival free-trade pact to the US-led Trans-Pacific Partnership. But while movement on a bilateral investment treaty between the sides is likely, the US is less receptive to China's Asian Infrastructure Investment Bank.

As the Apec host, China has been able to set the forum's theme and topics. They neatly fit Xi's domestic agenda, with an anti-graft initiative among deals to be signed by leaders meeting for two days from Monday. The theme is "shaping the future through Asia-Pacific partnership", while the chosen topics are "advancing regional economic integration", "promoting innovative development, economic reform and growth" and "strengthening comprehensive development in infrastructure and connectivity". They are important matters for a region that, amid global economic instability, is an anchor of prosperity.

There is good reason for optimism: no other region is better positioned to drive international growth. In the 25 years since Apec's foundation, it has grown from 12 members to 21; they account for 40 per cent of the world's population, 57 per cent of global GDP and 46 per cent of trade. China's joining in 1991 was a milestone for its development that has, in turn, helped the Asia-Pacific thrive. The greater the cooperation and integration, the more the grouping will benefit.