Police, soldiers storm parliament in Papua New Guinea over unpaid APEC bonuses

China woos Pacific islands with loans showcase projects

Xi warns of dangers of conflict while Pence lets fly

Instead, Papua New Guinean Prime Minister Peter O'Neill - who is the chair - will issue a chairman's statement.

The 21 APEC nations struggled to bridge their differences on the role of the World Trade Organization, which governs global trade.

Beijing also denied attempting to barge into the office of host country Papua New Guinea's foreign minister during the summit.

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

The Asia-Pacific Economic Cooperation meeting has ended in disarray, with leaders unable to reach consensus on the official communique.

Australian Prime Minister Scott Morrison used his speech at APEC to strongly criticize the US-China trade war while inviting other nations to participate in a revamped Trans-Pacific Partnership.

So far, the U.S. and China have traded tit-for-tat tariffs on goods totalling $US360 billion, with the United States acting as the aggressor, and Trump threatening numerous times to place tariffs on all USA imports from China, worth about $US500 billion.

In a sign of nations seeking to counter China's influence in the strategic Pacific region where Papua New Guinea is located, the US, Japan, Australia and New Zealand yesterday said they will jointly fund a US$1.7 billion (RM7.12 billion) plan to increase electricity supply from 13 per cent of PNG's eight million-strong population now to 70 per cent by 2030.

The collapse of the summit, staged in impoverished Papua New Guinea at a cost of hundreds of millions of dollars, much of it covered by China, followed duelling speeches from President Xi of China and Mike Pence, the United States vice-president. He accused China of luring developing nations into a debt trap through the loans it offers for infrastructure.

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Chinese leader Xi Jinping has urged the world to pursue free trade policies.

Mr Xi said the world is facing a choice between co-operation and confrontation as protectionism and unilateralism grows and added that the rules of global institutions set up after the Second World War such as the WTO should not be exploited 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 Argentina.

"The language we heard from Pence is quite concerning because it shows we're moving toward a zero-sum game geopolitics in the Asia-Pacific", said Jonathan Pryke, a researcher specializing in the Pacific at the Lowy Institute, a Sydney-based research group.

After the meeting, Pence told reporters Washington and Beijing have differences ranging from trade practices to forced technology transfers.

But ministry spokeswoman Hua Chunying said that no developing country would fall into debt difficulties because of cooperation with China and that cooperating with Beijing could help raise their independent development capabilities.

According to the Associated Press, Canadian Prime Minister Justin Trudeau said after the meeting, "I don't think it will come as a huge surprise that there are differing visions" on trade.

In Port Moresby, China had just added the finishing touches to a showpiece six-lane boulevard running between a main road in Port Moresby and parliament house.

Leaders pose for a family photo ahead of the retreat session during the APEC Summit in Port Moresby, Papua New Guinea on November 18, 2018.

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