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Tensions set to cloud APEC summit
by Staff Writers
Vladivostok, Russia (AFP) Sept 5, 2012


China envoy to visit fortified Taiwan-held island
Taipei (AFP) Sept 5, 2012 - China's chief Taiwan negotiator will travel this month to a former Cold War battleground, Taipei-held Kinmen island off the mainland, a Taiwanese official said Wednesday, in a sign of improving ties.

Chen Yunlin will become the highest-ranking Chinese official ever to visit the battle-scarred island, said Maa Shaw-chang, a spokesman of the quasi-official Taipei-based Straits Exchange Foundation (SEF).

He will travel to Kinmen at the head of a cultural delegation that will tour Taiwan for 10 days from Monday, according to Maa.

Kinmen, within sight of the southeast Chinese city of Xiamen, was the scene of several bloody clashes between China and Taiwan after the two sides split in 1949 at the end of a civil war.

It is one of the most-bombed areas in the world. The Chinese army fired more than 470,000 shells on Kinmen and several other islets in a 44-day bombardment in 1958, killing 618 servicemen and civilians and wounding more than 2,600.

As late as the 1970s, China still bombarded the island, although by then the shells were stuffed with propaganda leaflets. Since then, Kinmen has become a popular attraction for tourists from both sides.

Tensions across the Taiwan Strait have eased since China-friendly Ma Ying-jeou came to power in 2008 on a platform of ramping up trade and tourism links. Ma was re-elected in January for a second and last four-year term.

SEF, which is funded and overseen by the Taiwanese government, handles direct ties with China in the absence of formal relations.

Asia-Pacific leaders gather in Russia's far east this weekend for talks aimed at promoting trade but territorial disputes and other regional tensions may cloud the event.

The annual Asia-Pacific Economic Cooperation (APEC) summit aims to tear down trade barriers and promote integration across 21 economies covering the Pacific Rim, stretching from China to Chile.

But this year's meeting, in the former military port city of Vladivostok, will take place as tensions have reignited between APEC members Japan, South Korea and China over decades-long territorial disputes.

China has also become locked in hostile rows with APEC members Vietnam and the Philippines over competing claims in the South China Sea.

Meanwhile, China has been showing increasing annoyance with what it perceives as American efforts to contain its global rise, which it said were highlighted by US Secretary of State Hillary Clinton's latest sweeping tour of the region.

The disharmony could affect progress on trade at the leaders' summit on Saturday and Sunday, analysts said, although they believe everyone involved will work hard to ensure the summit's agenda is pushed forward.

"(The tensions) will probably make the formal meetings a little bit less friendly and warm than they might otherwise have been," Deborah K. Elms, head of the Temasek Foundation Centre for Trade & Negotiations at the Nanyang Technological University in Singapore, told AFP.

"But I don't think that any country wants the current problems in territory to spill over into economics at this point -- and certainly derail the limited APEC agenda."

Among the key figures at the summit will be Clinton, Russian President Vladimir Putin, Chinese President Hu Jintao and Japan Prime Minister Yoshihiko Noda.

Clinton is representing President Barack Obama, who cannot attend because he is campaigning for re-election.

World leaders are known to veer away from the formal agenda at APEC summits to discuss pressing issues, especially on the sidelines when they take the opportunity for face-to-face meetings.

"Leaders being leaders, they are free to talk among themselves as to what topics they feel are important and relevant," APEC executive director Muhamad Noor told AFP.

But Noor said the Vladivostok meeting's formal talks would focus on speeding up trade liberalisation -- including cutting tariffs on environmentally friendly products -- and ensuring steady food production to stop steep price rises.

Officials would also likely discuss ways to minimise the impact of disasters on the global supply chain, he added, noting industrial disruptions caused by last year's earthquake and tsunami in Japan and floods in Thailand.

Noor said average tariffs across APEC members were under 6.0 percent, down from 17 percent in 1989, when the group was formed, and officials were now focused on toppling non-tariff barriers.

APEC members account for 44 percent of global trade and about 41 percent of the world's population.

Last year's summit in Hawaii was dominated by Obama's push for an Asia-Pacific free-trade area called the Trans-Pacific Partnership (TPP).

Some progress has been made on the TPP since, with the number of countries officially involved in the talks now up to 11.

It is not on the formal agenda this year, with Russia not involved, but discussions among participants will be held on the sidelines.

Russia has spent $20 billion in recent years upgrading Vladivostok -- a former naval capital that fell into disrepair after the fall of the Soviet Union -- building bridges, highways, an airport terminal and a rail link.

The event is being held at new university facilities on Russky Island, just outside Vladivostok, with Putin hoping the gathering will showcase Russia's ambitions to be a major Pacific player.

However, the revival efforts for Vladivostok have been beset by problems including cost overruns, shoddy construction and criticism about bad planning.

Putin is scheduled to deliver a speech in Vladivostok during which he is expected to highlight Russia's increasing presence in the region.

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