From left, Chinese President Xi Jinping, Papua New Guinea's Prime Minister Peter O'Neill, Japanese Prime Minister Shinzo Abe, and U.S. Vice President Mike Pence wave as they pose for a group photo at APEC Haus in Port Moresby, Papua New Guinea, Nov.
From left, Chinese President Xi Jinping, Papua New Guinea's Prime Minister Peter O'Neill, Japanese Prime Minister Shinzo Abe, and U.S. Vice President Mike Pence wave as they pose for a group photo at APEC Haus in Port Moresby, Papua New Guinea, Nov.

An acrimonious meeting of world leaders in Papua New Guinea failed to agree Sunday on a final communique, highlighting widening divisions between global powers China and the U.S.

The 21 nations at the Asia-Pacific Economic Cooperation summit in Port Moresby struggled to bridge differences on the role of the World Trade Organization, which governs international trade, officials said. A statement was to be issued instead by the meeting's chair, Papua New Guinea Prime Minister Peter O’Neill.

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“The entire world is worried” about tensions between China and the U.S., O’Neill told a mob of reporters that surrounded him after he confirmed there was no communique from leaders.

?It was the first time leaders had failed to agree on a declaration in 29 years of the Pacific Rim summits that involve countries representing 60 percent of the world economy.

Canadian Prime Minister Justin Trudeau said there were differences between several nations, including China and the U.S. Draft versions of the communique seen by The Associated Press showed the U.S wanted strong language against unfair trade practices that it accuses of China. China, meanwhile, wanted a reaffirmation of opposition to protectionism and unilateralism it says the U.S. is engaging in.

Papua New Guinea Prime Minister Peter O'Neill is e
Papua New Guinea Prime Minister Peter O'Neill is escorted by security as he is pursued by reporters after reading his statement at the end of the APEC 2018 summit at Port Moresby, Papua New Guinea, Nov. 18, 2018.

“I don’t think it will come as a huge surprise that there are differing visions on particular elements in regard to trade and those prevented there from being a full consensus on the communique,” Trudeau said.

Rising West-China rivalry

The two-day summit was punctuated by acrimony and underlined a rising rivalry between China and the West for influence in the usually neglected South Pacific. China is a relative newcomer to providing aid, and its loan-heavy, no-strings attached approach has unsettled Western nations that have been the mainstay donors to developing nations and often use aid to nudge nations toward reforms.

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Pence, Xi Sell Differing World Views
U.S. Vice President Mike Pence and Chinese President Xi Jinping offered competing economic views as they spoke to regional leaders at the Asia Pacific Economic Cooperation  (APEC) CEO summit in Port Moresby, Papua New Guinea's capital.  Pence warned APEC members about accepting foreign debt  that "could compromise your sovereignty" and urged the APEC members to "protect your interests, preserve your independence. And just like America, always put your country first." Pence said the U.S.

U.S. Vice President Mike Pence and Chinese President Xi Jinping traded barbs in speeches Saturday. Pence professed respect for Xi and China but also harshly criticized the world’s No. 2 economy for intellectual property theft, forced technology transfers and unfair trading practices.

Leaders pose for a family photo ahead of the retre
Leaders disperse after posing for a family photo ahead of the retreat session during the APEC Summit in Port Moresby, Papua New Guinea, Nov. 18, 2018.

The U.S. has this year imposed additional tariffs on $250 billion of Chinese goods, and Beijing has retaliated with its own tariffs on U.S. products.

The world, according to Xi’s speech, is facing a choice between cooperation and confrontation as protectionism and unilateralism grows. He said the rules of global institutions set up after World War II such as the World Trade Organization should not be bent for selfish agendas.

Pence told reporters that during the weekend he had two “candid” conversations with Xi, who is expected to meet President Donald Trump at a Group of 20 summit at the end of this month in Buenos Aires.

“There are differences today. They begin with trade practices, with tariffs and quotas, forced technology transfers, the theft of intellectual property. It goes beyond that to freedom of navigation in the seas, concerns about human rights,” Pence said.

Leaders pose for a family photo at the APEC 2018 E
Leaders pose for a family photo at the APEC 2018 Economic Leaders Meeting at the APEC Haus at Port Moresby, Papua New Guinea, Nov. 18, 2018.

?China rejects US criticism

The U.S. is interested in a better relationship “but there has to be change” from China’s side, Pence said he told Xi, who responded that dialogue is important.

China’s foreign ministry rejected the U.S. criticism that it was leading other developing nations into debt bondage.

“The assistance provided by China has been warmly welcomed by our partners in this region and beyond,” Wang Xiaolong, a foreign ministry official, told a news conference.

“No country either in this region or in other regions has fallen into a so called debt trap because of its cooperation with China. Give me one example,” he said.

Countering Belt and Road

In Port Moresby, the impact of China’s aid and loans is highly visible. But the U.S. and allies are countering with efforts to finance infrastructure in Papua New Guinea and other island states. The U.S. has also said it will be involved in ally Australia’s plan to develop a naval base with Papua New Guinea.

From left, prime ministers Scott Morrison of Australia, Shinzo Abe of Japan, Peter O'Neill of Papua New Guinea, Jacinda Ardern of New Zealand and U.S. Vice President Mike Pence pose after signing the Papua New Guinea Electrification Partnership in Po
US, Allies to ‘Transform’ Papua New Guinea With Electricity
The U.S., Japan, New Zealand and Australia said they’ll bring electricity to 70 percent of Papua New Guinea’s people by 2030, boosting the West’s response to growing Chinese influence in the South Pacific.The four countries and Papua New Guinea signed the electrification agreement Sunday at the Asia-Pacific Economic Cooperation meeting behind held in the capital Port Moresby.U.S. Vice President Mike Pence said it shows how strongly the U.S.

On Sunday, the U.S., New Zealand, Japan and Australia said they’d work with Papua New Guinea’s government to bring electricity to 70 percent of its people by 2030. Less than 20 percent have a reliable electricity supply.

“The commitment of the United States of America to this region of the world has never been stronger,” Pence said at a signing ceremony. A separate statement from his office said other countries are welcome to join the electrification initiative provided they support the U.S. vision of a free and open Pacific.

China, meanwhile, has promised $4 billion of finance to build the first national road network in Papua New Guinea, among the least urbanized countries in the world.