How Asia-Pacific cooperation is shaping the global economy

Editor's note: Li Lun, a special commentator on current affairs for CGTN, is an assistant professor in the School of Economics at Peking University. The article reflects the author's opinions, and not necessarily those of CGTN.

When Chinese President Xi Jinping welcomed fellow leaders at the 22nd Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting by Beijing's Yanqi Lake in November 2014, he drew their attention to the migratory geese that gave the lake its name. The 21 APEC economies, he said, resembled 21 geese flying together. "A lone goose cannot make a formation," he pointed out.

The economic argument behind the image was that the region cannot sustain its prosperity if some of its developing economies struggle to advance.

As China prepares to host APEC 2026 in Shenzhen this month, economies well beyond the Asia-Pacific have an interest in how APEC members work together. In 2024, the 21 economies accounted for 61% of global GDP and 46% of world trade in goods and commercial services. For a producer selling into those markets, the important question is how much of that demand it can meet. An established exporter with regular orders can fill a container and spread the cost of customs clearance across the goods. For a smaller firm with a promising first order, access to regular shipping or a lower tariff will determine whether the sale goes ahead.

China's trade with Southeast Asia shows how growth in one economy can translate into orders for its neighbors. China's GDP doubled from roughly 64 trillion yuan ($9.59 trillion) in 2014 to 140 trillion yuan in 2025. Over the same period, its annual goods imports rose from 12 trillion yuan to 18.5 trillion yuan. China's imports from members of the Association of Southeast Asian Nations more than doubled.

For a Malaysian firm selling to China, one practical consideration is whether its customer can readily claim the lower tariff available under a trade agreement. An initiative to promote e-commerce innovation and development was launched at the 2014 APEC meeting. It laid the groundwork for a pilot project in 2022 on the electronic exchange of certificates of origin. These documents establish where the goods come from and help determine the tariff a buyer pays.

In June 2026, China and Malaysia began exchanging those records electronically under two regional trade agreements. A Chinese importer using paperless clearance can now claim the agreed rate on eligible Malaysian goods without re-entering the data or uploading the certificate. Simpler procedures let Malaysian firms compete on price from the first sale, before the buyer commits to a larger order.

On the other side of the Pacific, Chinese and Peruvian investment in the Port of Chancay, the deep-water smart megaport north of capital Lima, changed the economics of shipping fresh produce to China. The first direct sail carrying Peruvian blueberries to Shanghai arrived in 23 days, down from the 35 to 40 days the crossing typically took. The shorter voyage gives distributors more time to get the fruit to customers inland while it is still fresh.

Banana and shrimp exporters in neighboring Ecuador also gained a faster route to Shanghai when a new shipping service connected Ecuador's port city Guayaquil to Chancay. The Port of Chancay thus becomes more valuable to Peru as producers in neighboring economies make use of it.

When APEC members discuss where transport investment is needed, Chancay provides a reason to provide access for smaller economies. Exporters may have to turn down orders because certain markets are too costly to reach. But a route that looks insignificant on the strength of bilateral trade alone may warrant investment if it gives several economies a direct service that none could sustain on its own.

Regular sailings and predictable border procedures become especially valuable when supplies come under pressure. In May 2026, APEC trade ministers meeting in Suzhou in east China called for keeping trade corridors open for energy and other essential goods. A fuel shipment may cross several jurisdictions before reaching the factories that need it. Advance notice of a change in border procedures gives carriers time to adjust sailings and importers time to arrange deliveries, helping those factories continue to supply customers elsewhere.

Twelve years after President Xi spoke at Yanqi Lake, leaders gathering in Shenzhen can measure APEC's value by the opportunities it creates for other economies. The larger member economies can open their markets and finance investments on a scale few others can match. Smaller partners help make those investments more viable as their exporters win customers and turn initial sales into lasting trade relationships. As Xi's image of geese flying in formation suggests, an economy that draws strength from its neighbors can, in turn, help others go further.

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