Apec leaders meet in shadow of US shutdown

Asia-Pacific leaders opened an annual economic summit on Monday in the shadow of global growth clouds that are darkening by the day as the United States struggles to shake off policy paralysis.

The US government shutdown has stopped President Barack Obama from attending the Asia-Pacific Economic Co-operation (Apec) summit on the Indonesian resort island of Bali.

That has worried US allies at a time when China is on the rise and Washington is trying to push through an ambitious 12-nation trade pact that excludes Beijing.

Obama’s enforced absence at both Apec and an East Asia summit straight afterwards in Brunei has left the stage clear for Chinese President Xi Jinping, who has been touring the region and will address a parallel meeting of Apec business leaders later on Monday.

The title of Xi’s speech is “China in transition: what can the Asia-Pacific expect?” Some expect an economic bonanza. Others, looking nervously at Beijing’s far-reaching territorial claims, expect a more turbulent region and want reassurance from Washington.

But the United States may be ill-equipped to offer much immediate global leadership as it confronts a menace mightier than even the shutdown: the possibility that it might default on its colossal debts unless Congress raises the federal borrowing limit by October 17.