Xi ruled the summit

Even the sky above Beijing was clear blue, thanks to government efforts to temporarily halt the industrial and transport pollution in the Chinese capital. Unsurprisingly, the residents of the city and the visitors dubbed the Asia-Pacific Summit "APEC-Blue." Everything else was also calm and smooth - just as the Chinese probably wanted.

And the big moment came when Beijing finally allowed the meeting between Japanese Prime Minister Shinzo Abe and Chinese President Xi Jinping to happen. Japan's PM, awkwardly, had to wait in front of the cameras at the Great Hall of the People for Xi to come for a frosty handshake, which adequately symbolized the end of the Sino-Japanese "ice age."

Prior to the meeting, diplomats from both sides decided to engage in confidence-building measures and avoid an escalation of tensions over the uninhabited Senkaku/Diaoyu Islands. However, the diplomats acknowledged that both sides had different positions regarding the tensions over the islands and some waters in the East China Sea.

The whole thing could be seen as Beijing's diplomatic success - the East China Sea dispute is officially on the bilateral agenda with Tokyo, and despite Japan's stance, there was apparently nothing to negotiate.

Competing free trade interests

After the main hurdle in the Sino-Japanese relations was cleared, Xi was able to concentrate on his free trade initiative. This was also a diplomatic victory for Xi, who touted the move as a "historic step in the direction of an Asia-Pacific free trade area." The agreement behind it, however, is less impressive as it will take two years to examine the possible adoption of the Chinese proposal called Free Trade Area of the Asia-Pacific (FTAAP).

But the fact that Asia-Pacific leaders backed China's roadmap is already a big success for Beijing. The initiative upstaged the US-led 12-country Trans-Pacific Partnership (TPP) deal, which is widely seen as the economic backbone of Obama's pivot to Asia. Shortly before the start of the summit, Obama had spoken of an imminent breakthrough in negotiations to launch the TPP.

One key difference between the free trade initiatives is that while the FTAAP would include all 21 APEC members, the TPP excludes China. Moreover, the TPP aims to create a genuine free trade block, which entails reducing or eliminating tariffs on most goods among the member countries.

But China is following a different approach. The FTAAP's purpose is to provide an environment conducive to bilateral free trade deals, such as the one China struck with South Korea ahead of the summit. This approach is very similar to China's strategy when dealing with territorial disputes in the South China Sea, according to which disputes should settled bilaterally.

Agreeing on climate change

There is no doubt that Xi Jinping, China's most commanding leader since Deng Xiaoping, can regard his performance on the APEC stage as a success. He has shifted the focus of the summit back to its original goal, free trade, which is expected to boost global economic growth.

The downside of this development, however, is climate change. Towards the end of their bilateral talks Xi and Obama presented their long-awaited agreement on reducing greenhouse gas emissions. "APEC Blue" would have a whole new meaning if the Pacific rivals truly got together to combat climate change.