Apec 2013: China Grabs Limelight With US Hobbled

The US government shutdown in Washington forced President Obama to cancel his visit to Bali for the Asia Pacific Economic Cooperation summit. Secretary John Kerry attended the summit in his place, the US may lose ground to an assertive China, reports Agence France-Presse. China’s President Xi Jinping, talking to leaders from various countries, touts free trade deals and addresses disquiet in the region about his country’s territorial ambitions. Meanwhile, the Trans-Pacific Partnership is faltering with Obama’s absence at the summit. Kerry has tried defusing the tension created by the federal government shutdown, saying it was merely a “moment in politics.” However, Asian leaders express worry about the US government defaulting on its massive debts. Russia’s president, too, emphasized the priority of stable US politics. This may be possible if Congress fails to raise the federal debt ceiling – on spending already approved by that legislative body – a disaster for the world economy as the dollar is the largest reserve currency. – YaleGlobal