South Korea finds itself in a precarious diplomatic position this October 2025 as it hosts the Asia-Pacific Economic Cooperation (APEC) summit, bringing together the world’s two largest rival powers: the United States and China. In the midst of intensifying geopolitical tension and trade conflicts, South Korea’s elected president Lee Jaeung faces the challenge of balancing national interests while trying to avoid alienating either side.
The summit comes at a time when South Korea is grappling with mounting pressure from both Washington and Beijing. The United States, under former President Donald Trump, has demanded an unprecedented $350 billion investment package from Seoul as part of a trade agreement aimed at securing American economic interests. Trump’s insistence on upfront cash investments and his linking of the deal to tariff reductions have created reluctance in South Korea, where economic officials warn such commitments could destabilize the domestic market.
Conversely, China remains South Korea’s largest trading partner, accounting for a significant portion of its exports. Yet, economic sanctions and diplomatic warnings from China, especially pertaining to the U.S.-South Korea alliance and South Korea’s deployment of U.S. missile defense systems, have strained ties. China’s Ministry of Commerce went so far as to justify sanctions against the South Korean conglomerate Hanwha, citing threats to China’s “sovereignty, security, and developmental interests.”
President Lee himself has acknowledged the difficulty in maintaining South Korea’s traditional “migongj” policy—relying on the U.S. for security and on China for economic prosperity. “It is no longer feasible to uphold that kind of reasoning,” Lee said in an August visit to Washington, signaling a potential shift toward a more decisive stance favoring alliance commitments.
At home, public sentiment reveals a diverse and sometimes contradictory picture. While nearly 90% of South Koreans hold favorable views of the U.S. as a critical ally, one-third view China as a significant threat, reflecting rising anti-Chinese sentiment fueled by historical grievances and recent economic retaliation. Demonstrations have erupted in Seoul with chants like “No Trump! No China!” reflecting public frustration with what many perceive as the pressure to choose sides in a geopolitical tug-of-war.
Experts highlight the diplomatic tightrope South Korea must walk during the summit. According to Professor Jongh Min at South Korea’s National Diplomatic Academy, “The participation of leaders from major countries at this summit presents a valuable opportunity to advance pragmatic diplomacy. South Korea aims to strengthen its alliance with the U.S. while maintaining working ties with China and other key nations.”
The summit aims to produce a joint declaration among the 21 participant countries to avoid repeating the failed outcomes seen in 2018 due to U.S.-China trade disputes. However, deep divisions remain, particularly on issues related to tariffs, economic investment, and security cooperation.
Summary and Next Steps:
South Korea’s hosting of the APEC summit amid escalating U.S.-China rivalry underscores its vital role as a diplomatic mediator in East Asia. As President Lee Jaeung navigates pressures from both superpowers, South Korea’s decisions in trade and security agreements will have significant implications for regional stability and economic growth. The world will watch closely whether Seoul can maintain its delicate balancing act or be forced into a clear alignment. Domestically, the government must also manage public sentiments and political divides to steer the country through a complex geopolitical landscape.
