The leaders found their way through a cordon of gun-toting
security and barbed wire sealing off the center of the capital.
There, they were welcomed in the marble, gilted royal palace
under crystal chandeliers - but the meeting was expected to be stronger on
symbolism than achievements.
Asian leaders will be looking for a commitment from European
leaders to give up some of their seats at the International Monetary Fund to
emerging economies.
"The fact that Europeans show us the flexibility and
willingness to negotiate is important," said Rhee Chang-yong, a South
Korean delegate. "For us, the IMF quota reform is very symbolic and very
important," he said, reflecting Asian feelings their economic emergence
should count for more on the global stage.
South Korea will organize the Group of 20 meeting of the
world's major economies next month and expects to have an agreement then.
The leaders of 48 nations will focus on economic issues
during the opening session of the two-day summit, seeking common ground on ways
to fix and regulate the global financial market.
They will also face potential clashes on market restrictions
and trade surpluses. On Wednesday, there will also be bilateral EU summits with
China and South Korea.
Chinese Premier Wen Jiabao already set the tone during his
visit to debt-laden Greece this weekend, vowing to cooperate with Europe to
keep the global economy stable.
"The European Union is China's biggest trading
partner," Wen said Sunday. "Relations between the two sides have
reached an unprecedented level. Both are irreplaceable partners."
Overall, the nations from the two continents represent about
half the world's economic output and 60 percent of global trade. But, instead
of Europe driving the summits, the emergence of China as a new trading
juggernaut has somewhat turned the tables at the biennial meetings.
Last week, the IMF said that Asian and Latin American
economies were doing well but prospects for some European countries, including
Greece, remain uncertain.
Wen insisted however that mutual help was the only way
ahead. "Cooperation can help both sides significantly. They do not have
any fundamental clashes of interests. Both sides have a stake in rebuilding the
international financial system." On Wednesday, the EU leaders and South
Korean President Lee Myung-bak will sign a free trade pact that will slash
billions of dollars in industrial and agricultural duties, despite some
countries' worries that Europe's auto industry could be hurt by a flood of
cheaper cars.
The deal - the first such pact between the EU and an Asian
trading partner - will come into force on July 1, 2011.
Japan's Prime Minister Naoto Kan will pursue a free trade
agreement in his bilateral meetings with European leaders, said Foreign
Ministry spokesman Satora Satoh.
Japan feels itself at a competitive disadvantage with South
Korea, which has an agreement with the EU that has taken a bite out of Japanese
exports, particularly of cars and LCD televisions, he said. He said Japanese
business was "alarmed" by the EU's deal with Seoul.
While Japan is anxious for an agreement as soon as possible,
he said the Europeans still lack consensus among its 27 members. With an
economy four or five times larger than Korea's, the Europeans are being more
cautious with Japan.
"There is a sense that we are not making full use of
our potential," he said. EU-Japan trade peaked at 117 billion euro in
2008, but were driven down by the financial crisis last year.
Besides the economy, Japan also has an issue with China, as
both continue a diplomatic row following the arrest of a Chinese fishing boat
captain whose trawler collided with Japanese patrol vessels near disputed
islands.
"It is important to thoroughly explain the stance of our
country," Kan said of his plans at the summit.
Since the incident in the East China Sea, Beijing has
suspended ministerial-level talks with Tokyo and postponed talks on jointly
developing undersea gas fields. Japan released the captain last weekend, but
Beijing then requested an apology - prompting Japan to demand China cover
damage to the patrol boats.
The European Union proposed new measures to keep government
debt in line last week and earlier outlined measures to better control
international banking and financial trade. Several Asian nations have already
welcomed such measures. Many of the issues will taken up again when the Group
of 20 nations meeting in Seoul, South Korea, on Nov. 11-12.
It does not mean economic discord will be kept at bay this
week.
Many Western nations have complained that China keeps its
currency undervalued to give its exporters an unfair price advantage on
international markets while at the same time China closes off its markets,
keeping European businesses out.
"Business leaders are increasingly concerned about the
deteriorating business climate for foreign companies in China," wrote
Philippe De Buck, the head of the confederation of European business
BusinessEurope.
Wen countered that "Europe's exports during the crisis
have declined to other countries, but seen a substantial increase to China
alone ... It may appear that there is competition between Europe and China, but
in reality there is more cooperation than competition," Wen said.
