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The differences between the US and China over rival free trade agreements being floated by them threatened to derail the APEC Summit which got off to a colourful start in Beijing China on Monday.
Addressing the Asia-Pacific Economic Cooperation (APEC) CEO meet after his arrival here to take part in the APEC leaders summit, US President Barack Obama asserted that Trans Pacific Partnership (TPP) being floated by Washington is the best for the region.
If completed it will bring 40 per cent of global economy under an agreement for increasing trade, jobs, high standards for workers and intellectual protection, he said.
"If China and the United States can work together, the world benefits," he said.
Obama noted that enhancing China's integration to the world economy is in "US' best interest and the world's best interest."
"We want China to do well. We compete for business, but we also seek to cooperate on a broad range of shared challenges and shared opportunities" in fighting Ebola spread, stopping nuclear proliferation, deepening clear energy partnership, and combating climate change, he said.
China, the world's largest trading nation, is concerned because TPP excludes it.
TPP is backed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, all sharing close ties with Washington.
To avert its exclusion, China is aggressively pushing Free Trade Area of the Asia-Pacific (FTAAP) in which US has shown little interest.
Chinese President Xi Jinping, who is hosting the 21-member conference, said the FTAAP does not go against existing free trade arrangements in the region.
"The FTAAP does not go against existing free trade arrangements, which are the potential pathways to realise the FTAAP goals," Xi said speaking at the dialogue between the Asia-Pacific Economic Cooperation (APEC) leaders and representatives of the APEC Business Advisory Council.
The FTAAP can be the "aggregation" of existing free trade arrangements, he said.
The aim of pushing forward the FTAAP process is to consolidate the regional integration and define long-term goals, he said.
Xi outlined four achievements of the Beijing's APEC meet which included the (FTAAP) process, issuance of a statement on the future vision of APEC and promoting of innovation, reforms and growth to seek new momentum in the region and a blueprint to lay a solid foundation for all-round connectivity in the Asia-Pacific.
Obama along with Russian President Vladimir Putin, Japanese Prime Minister Shinzo Abe with other APEC leaders took part in the glittering ceremonies arranged by China, displaying its opulence.
The leaders were treated to some spectacular dances converting the 2008 Olympic arena into a massive colourful stage with lighting and fireworks.
China has shut down hundreds of factories in the vicinity to ensure pollution free meeting and constructed a new conference theatre at an island close to Beijing.
The leaders meeting will take place tomorrow after which Obama and Xi would hold bilateral talks on Wednesday in an attempt bring down their differences on a host of global issues.
In his address outlining US policy on China, Obama stated that US welcomes the rise of a prosperous, peaceful and stable China but at the same time US-China relationship is not a "zero-sum game" and benefits both countries and the world.
As the world's two largest economies, the two countries "have special responsibilities to embrace," Obama said.
Obama also announced the two nations have agreed to implement a new visa arrangement during his visit, which will extend the student visa from one year to five years, and business and tourist visa to 10 years.
This will benefit students and business large and small, Obama said, adding China's economic development and Chinese tourists made positive contribution in creating jobs for Americans and hence promoting the country's economy.
Obama said he "very much appreciated" Xi's efforts to promote bilateral ties.
Noting US security and prosperity "is inextricably intertwined with Asia," Obama explained that the region is "an incredible opportunity for creating jobs and economic growth for the United States."
"Over the next five years, nearly half of all economic growth outside the United States is projected to come from right here, in Asia," he said.
Speaking of economic cooperation among APEC members, the US President said that "in the 21st century, the pursuit of economic growth, job creation and trade is not a zero-sum game."
One country's prosperity does not have to come at the expense of another.
"Working together, we need the growth that is balanced, growth that is strong, growth that is sustainable, and growth where prosperity is shared by everybody who is willing to working hard," Obama said.