China’s exports have stayed firm overall, rising 8.3% in September from a year earlier, but shipments to the US plunged 27%. Electric vehicle exports doubled, yet retail sales grew only 3% and spending during the Golden Week holiday was “mildly disappointing,” analysts at Morningstar said.

Residential sales fell 7.6% in the first nine months of the year, and S&P expects new home sales to drop a further 8% in 2025. Economists expect a central bank rate cut by year’s end as authorities look for ways to revive demand.

Across the Pacific , the US faces its own strain. The national debt has topped $38 trillion for the first time, as a government shutdown leaves hundreds of thousands of federal workers unpaid and delays key spending decisions.

“Reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are not meeting their basic fiscal duties,” said Michael Peterson of the Peter G. Peterson Foundation. 

The debt has climbed from $34 trillion in January 2024, an unusually fast pace. The Trump administration says it is tightening spending and cutting the deficit. Treasury data show a $468 billion shortfall from April to September, the lowest since 2019. 

But with voter concern about debt rising, and China’s growth slowing, both superpowers head into APEC under pressure to prove they can keep their economies — and their rivalry — under control.

Tariffs , immigration policies and lingering tensions with Washington are all expected to be brought to the table when Asian leaders engage with Trump on this trip. Here’s what you need to know about it. 

Malaysia 

Trump’s first stop will be at the ASEAN Summit in Kuala Lumpur from October 26 to 27. There, he will meet the 10 leaders from the regional bloc, which is set to expand this year with the accession of the fledgling democracy, Timor Leste. 

Topics expected to be brought up include trade and US tariffs, regional security and defence partnerships, and the Gaza War, which Trump recently helped bring to a ceasefire using a 20-point peace plan between Israel and Hamas agreed to.

Though he arrives at the summit with a fortified credibility as a peacemaker, he also hovers with the image of a stingy negotiator. Tariffs on ASEAN countries stand between 10% to 40%, and trade tensions around the region recently flared up when Washington slapped a 100% tariff on China, a major export market for Southeast Asian countries. 

As well, host country Malaysia’s decision to extend an invitation to Trump may be rooted in trade realities: the United States is now Malaysia’s largest export market, overtaking China. Bilateral trade has nearly doubled over the past decade, reaching $78.3 billion in 2022.

ASEAN had invited Xi to the summit, but he is expected to skip the event and attend the APEC Summit in South Korea instead.

Japan

Trump will stop in Tokyo early next week to meet Prime Minister Sanae Takaichi, Japan’s first female leader.

Talks will centre on trade and investment. Washington is demanding up to $550 billion in Japanese investments in the US, but Tokyo has so far pledged only a small share as direct capital. 

Trump is also expected to press Japan to cut imports of Russian liquefied natural gas, a sensitive issue for energy-dependent Tokyo.

Despite a July deal lowering tariffs on Japanese cars, manufacturers say the new 15% rate remains too high, while tariffs of 50% on steel still stand. The two leaders are also expected to discuss regional security and coordination on China ahead of the APEC summit.

South Korea

Trump’s final stop will be Gyeongju, South Korea, for the APEC Summit from October 31 to November 1 — where he is expected to meet Chinese leader Xi Jinping for the first time since returning to office.

Trade will dominate the agenda. Both leaders face pressure to cool tensions before new U.S. tariffs of up to 100% on Chinese exports take effect. Trump has said he hopes for a “deal on everything,” though Beijing has not yet confirmed the meeting.

South Korean President Lee Jae Myung will seek to finalise a $350 billion investment deal with Washington, delayed by disagreements over financing terms. The talks come amid lingering anger in Seoul over a US immigration raid last month that detained 300 South Korean nationals at a battery plant in Georgia.

North Korea’s latest missile test, launched days before Trump’s arrival, is expected to add urgency to discussions. While Trump has hinted at wanting to meet Kim Jong-un again, no such encounter is planned.

The Da Nang Free Trade Zone spans over 1,800 hectares and will include areas for manufacturing, logistics, services, and digital innovation.

Vietnam hopes the zone will attract global investors and become a gateway for trade across the Asia-Pacific region.

It is connected to key transport infrastructure such as the Lien Chieu deep-water port, Da Nang International Airport, and the East-West Economic Corridor, giving it a strong position in regional logistics networks.

The government says the project will play an important role in Vietnam’s wider development strategy, as Da Nang prepares for closer economic integration, including a proposed merger with neighbouring Quang Nam province.

Authorities also see the zone as a foundation for Da Nang’s future international financial centre and part of efforts to turn the city into a hub for green growth, digital services, and advanced industries.

At the launch, city officials signed agreements with several large Vietnamese and international companies, signalling early interest in the zone’s investment potential.

The agreements are expected to support new projects in production, technology , and finance.

Vice President Sara Duterte has returned to the Philippines after a diplomatic visit to Malaysia, where she engaged with officials to strengthen bilateral relations. The discussions focused on trade, security, and cultural exchange, underscoring efforts to deepen cooperation between the two Southeast Asian nations. The visit reaffirms the Philippines' commitment to regional stability and economic collaboration.

Philippine envoy in Pakistan hopes for stronger future cooperation

Philippine Ambassador to Pakistan, Dr. Emmanuel R. Fernandez, has emphasised the increasing interaction between the citizens of both countries and expressed optimism about enhanced bilateral cooperation. Speaking as the chief guest at the 127th Philippine National Day celebration hosted by Honorary Consul General Dr. Imran Yousuf in Karachi, Ambassador Fernandez noted the longstanding ties between the two nations in trade, education, culture, and people-to-people exchanges.

Philippines renews bid for UN Security Council seat

The Philippines has renewed its campaign for a non-permanent seat on the United Nations Security Council, with Foreign Affairs Secretary Enrique Manalo highlighting the country's record as a "pathfinder and peacemaker." Speaking at the Philippine Independence Day celebration in New York, attended by over 300 diplomats and guests, Manalo emphasised the country's historic role as Asia’s first republic and its commitment to equality among nations, multilateralism, and global peace.

Philippines deepens ties with Italy

The Philippines is strengthening its relationship with Italy as part of broader efforts to enhance cooperation in the Indo-Pacific region, according to Philippine Ambassador to Italy Nathaniel Imperial. On the occasion of the 127th Philippine Independence Day celebration in Rome, Ambassador Imperial highlighted the progress in bilateral relations, citing Foreign Affairs Secretary Enrique Manalo’s official visit to Italy last year at the invitation of Deputy Prime Minister and Foreign Minister Antonio Tajani. The ambassador emphasised growing collaboration in key areas such as defence, trade, investment, tourism, and labour.

Philippines boosts investor support to strengthen economic appeal

The Philippines is stepping up efforts to attract more local and foreign investment, with the Bureau of Internal Revenue (BIR) directed to prioritise services for investors in line with President Ferdinand R. Marcos Jr.’s economic agenda. BIR Commissioner Romeo Lumagui Jr. announced that all BIR offices have been instructed to assist and prioritise investors, particularly those involved in strategic investments under the Investment Facilitation Network.

"We have taken note of the report, but the Pacific Islands Forum Secretariat has not linked the hack to China," Mao said in a statement.

She added that such accusations are part of repeated efforts to "sow discord" between China and countries in the region. Mao emphasised that the South Pacific is not "any country's backyard" and urged all parties to respect the right of South Pacific nations to form balanced relationships with global powers.

The Pacific Islands Forum, consisting of 18 member nations, has become a focal point of geopolitical competition between China and the United States.

The recent summit, held in Tonga, was dominated by the growing rivalry between the two countries, as both vie for influence in the region.

"Even if outside experts and large international companies must be involved in harnessing these resources, it is only right that the needs of local people are given due consideration when distributing the proceeds and employing workers," Pope Francis is quoted by the AFP.

The pope also addressed the ongoing issue of tribal violence among the people, expressing his hope for peace. "It is my particular hope that tribal violence will come to an end, for it causes many victims, prevents people from living in peace, and hinders development," he said.

In addition to advocating for peace, Pope Francis called for a resolution to tensions with Bougainville, an autonomous island region.

The visit to Papua New Guinea forms part of the Pope’s Asia-Pacific tour. He is expected to visit Indonesia, Papua New Guinea, Timor-Leste, and Singapore over 12 days.

The process will be possible only during working hours and processing time and fees will remain unchanged.

The move follows a visit by Kenyan President William Ruto to China in October, the first since he became president in September 2022.

According to President Ruto, the China-Kenya relations have provided grounds for successful engagements between both countries.

Presidents Ruto and Xi Jinping held bilateral talks on the sideline of the Belt and Roads Summit.

There were also pledges to continue talks towards development in both countries.