Terror overshadows trade as Apec meets

By FRAN O'SULLIVAN

SHANGHAI - The effect of international terrorism on how the world does business will dominate the Apec CEOs' summit.

When the Chinese organisers set the agenda they wanted to showcase China as it prepares for its next big leap forward - admission to the World Trading Organisation.

Big-hitters such as Microsoft's Bill Gates and Hewlett-Packard/Compaq's Carly Fiorina, who will address the summit, are also focused on China. This huge market is slowing as the deteriorating world economy cuts export growth, but with foreign direct investment hurtling along at 20.7 per cent for the first nine months of this year, the opportunities are obvious.

A terrorist attack on Shanghai cannot be ruled out. This is the first meeting between US President George W. Bush, Russian President Vladimir Putin and China's Jiang Zemin since the World Trade Center assault.

But the prospect of getting close to the world leaders has brought a late influx of applications from the heads of Fortune 500 companies.

The three leaders will each address the summit. So will our own Helen Clark.

For New Zealand the summit presents a chance to strengthen links with US business people and lobby for a closer economic partnership between the two countries.

But when Helen Clark speaks to the summit tomorrow the business audience will also be looking for clues on how stronger trade ties can increase regional security.

The US may be having a collective nervous breakdown over the anthrax scare. But at least the business people at the summit will be able to steady their nerves. Last year the Brunei organisers were nearly tossed into jail when one of their student helpers was caught smuggling alcohol into the Muslim country.

Perhaps they took the acronym APEC ("Ageing Politicians Enjoying Cocktails") a bit too seriously.

Full coverage: APEC 2001