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China faces increasing economic headwinds that call into question not only its near-term growth outlook but the longer-term sustainability of its economic success. At a time of leadership transition in Beijing, global markets and policymakers alike are casting an anxious eye on China's economic decisionmakers and wondering whether they have the plans, skills, and fortitude to cope with these challenges. There is a rising premium on understanding how Chinese economic policy decisions are made, whether the emerging cadre of policymakers has the wherewithal to navigate the more turbulent waters ahead, and what the implications are for U.S. foreign and economic policy.

Economic integration has been a focus of Asia-Pacific affairs for the last quarter century. To support and strengthen economic ties, governments in the region have pursued an array of integration initiatives, from the Asia-Pacific Economic Cooperation (APEC) forum launched in 1989 to bilateral and regional trade negotiations currently underway. APEC has been the most successful tool of regional trade and investment integration thus far and has the potential to continue bridging differences between various integration efforts in the region. This report, with input from a wide variety of regional and topical experts, posits that developing a common, high-standard policy approach to value chains could pull together the various integration efforts to the substantial economic benefit of the entire region. The report offers eight recommendations for a broad-based APEC initiative building on existing work in the region on supply chains and connectivity.