US, China clash at Apec

China and the US crossed swords yesterday ahead of an APEC summit, duelling over protectionism, trade tariffs and "chequebook diplomacy" as they laid out sharply contrasting visions for the Pacific Rim region.

In combative back-to-back speeches at a business forum held on a hulking cruise ship moored in Port Moresby, Xi Jinping and US Vice President Mike Pence pulled few punches.

The feisty exchanges laid the ground for what could be a fiery encounter between the Chinese leader and President Donald Trump at next month's G20 in Argentina.

Xi lashed out at "America First" trade protectionism and stressed that global trade rules should not be applied "with double standards or selfish agendas" -- in a thinly veiled swipe at Washington.

The world's top two economies have been embroiled in a spiralling trade war, imposing tit-for-tat tariffs on each other's goods in a confrontation experts warn could torpedo the global economy.

Xi urged the world to "say no to protectionism and unilateralism", warning it was a "short-sighted approach" that was "doomed to failure".

For his part, Pence vowed US tariffs would remain in place unless Beijing "changes its ways".

Amid fears diplomatic and trade friction could spill over into the military sphere, Pence announced the US would join forces with Australia in the development of a new naval base. And in a move likely to irritate Beijing, he also briefly met Taiwan's APEC representative.

Trump decided to skip the summit in Papua New Guinea, leaving the door open for Xi, who arrived two days earlier for a state visit and has been the undoubted star of the show.

The APEC summit of leaders from 21 countries across the region has developed into a tussle for influence between an increasingly assertive China and a more withdrawn US.

This appeared to be borne out by the first "family photo" of leaders, which featured Xi front and centre while Pence was absent.

But in his speech, Pence lashed out at Chinese largesse in strong terms, mocking the Belt-and-Road initiative that sees China offering loans to poorer countries in the region to improve infrastructure.

He said the terms of China's loans were "opaque at best" and "too often, they come with strings attached and lead to staggering debt".

"Do not accept foreign debt that could compromise your sovereignty," he said.

As if pre-empting the criticism, Xi defended the plan amid attacks it is akin to "chequebook diplomacy" to further Chinese interests in the region.

He denied there was a "hidden geopolitical agenda... nor is it a trap as some people have labelled it".

And the Chinese leader warned that no one would gain from heightened tensions between the US and his emerging superpower.

"History has shown that confrontation -- whether in the form of a cold war, hot war or trade war -- will produce no winners," he said.