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The United States is hosting the annual APEC summit of world leaders this week for the first time since 2011. Leaders from the 21-member Asia-Pacific Economic Cooperation group will gather in San Francisco to talk about how to better spur trade and economic growth across the Pacific region.

But the main summit event will actually be on the sidelines: A face-to-face meeting between President Joe Biden and Chinese President Xi Jinping. This year's conference is happening against the backdrop of the frosty relationship between China and the U.S. and global turmoil from the Israel-Hamas war and Russia's invasion of Ukraine.

A look at what APEC is and how it works:

WHAT IS APEC?

APEC stands for Asia-Pacific Economic Cooperation. It's a forum to promote trade, investment and economic development among nations around the Pacific Ocean.

The group started with 12 members in 1989, but has since grown to 21 including China, Russia, Japan, the U.S. and Australia. Those member nations pack a lot of punch, accounting for nearly 40% of the global population and almost half the world’s trade.

The annual leaders' conference brings together heads of nations and other top economic and diplomatic leaders. (Don't expect much of a presence from Russia this year; it's a pariah as Russian President Vladimir Putin presses his country's invasion of Ukraine and will have lower-level representation.)

White House aides say the goal for this year's summit is to try to make APEC economies more resilient, particularly in the face of growing climate issues and following a global pandemic that killed millions of people and strained supply chains.

THE MAIN EVENT

The main event of this summit is unfolding on the sidelines: a meeting between Biden and Xi. The two leaders haven't spoken in person since they met last November during the Group of 20 summit in Bali, Indonesia. A lot has happened since then to ratchet up tensions between the superpowers.

The Biden administration shot down a Chinese spy balloon that traversed the continental U.S. earlier this year. The Chinese government hacked the emails of Commerce Secretary Gina Raimondo. The U.S. government restricted the export of advanced computer chips to China, and has pushed to provide development aid to other nations to counter China's influence.

The differences also have been exacerbated by Russia’s war in Ukraine and China’s increasing assertiveness in the Taiwan Strait. But representatives from the U.S. and China have been meeting with increasing frequency lately, working to thaw relations. Still, the Biden-Xi meeting isn't expected to substantially alter the trajectory of U.S.-China relations.

HOW EFFECTIVE IS APEC?

The forum has limited scope. It is centered on trade and the economy. There is no military component and it wasn't forged by a world-altering event like a war.

It technically has member “economies” rather than countries. That allows room for participation by both China-ruled Hong Kong and self-ruled Taiwan.

APEC's strength lies in its ability to get countries to work together on big initiatives and to ease business relations without binding agreements. Economists point to how APEC contributed to a reduction of tariffs and other barriers to trade.

But the trade landscape is different now than when APEC began in a period of increased globalization. The U.S. strategy has been focused on economic competition with China rather than cooperation, even as U.S. leaders continue to stress the importance of cooperation. Biden is seeking partnerships with other nations in the region to develop alternatives to Chinese manufacturing imports such as electronic equipment, machinery, furniture, textiles and other goods.

Biden also is trying to highlight progress on the new Indo-Pacific trade deal, started last year after President Donald Trump withdrew from the more popular Trans-Pacific Partnership.

FRICTION

The conference has had its challenges and moments of drama in recent years.

The group met virtually in 2020 and 2021 because of the COVID-19 pandemic. Leaders did gather in Bangkok last year, but Biden skipped the summit because his granddaughter was getting married and he sent Vice President Kamala Harris in his place. That decision was regarded as a snub by some APEC leaders. Then, delegates from the United States and four other nations walked out to protest Russia's invasion of Ukraine as the Russian representative to the conference began to speak.

Chile withdrew as APEC host in 2019 due to mass protests. Last year, when Thailand hosted the summit in Bangkok, pro-democracy protesters challenged the legitimacy of the Thai prime minister, prompting police to fire at the crowd with rubber bullets that injured several protesters and a Reuters journalist.

This year may give rise to friction over the Israel-Hamas war. The variety of nations involved in the summit have strong views on both sides of the conflict. Typically at the close of a summit there is some kind of joint statement by all the nations, but that's not a given this year, in part because of those differences.

There is also some participation intrigue: Taiwan will once again be represented at the summit by Taiwan Semiconductor Manufacturing Co. founder Morris Chang. The 92-year-old’s lack of a domestic political role allows him to meet with world leaders without fear of repercussions from China.

Hong Kong, meanwhile, will be represented by Financial Secretary Paul Chan. Chief executive John Lee, who is under U.S. sanctions for his role in a political crackdown in Hong Kong, opted out of the summit, citing scheduling issues.

A potential U.S. government shutdown also could loom over the conference: The government will run out of money on Friday without a funding agreement between Congress and the president. It's a persistent reminder of U.S. political dysfunction just as as Biden seeks to project American reliability. The credit rating agency Moody’s Investors Service lowered its outlook on the U.S. government’s debt on Friday to “negative,” citing rising interest rates and political polarization in Congress.

FORUM FASHION

At the end of APEC summits, the leaders typically pose together for a “family photo.” At the first leader-level meeting three decades ago, President Bill Clinton, hosting in Seattle, handed out matching leather bomber jackets similar to those worn by American fighter pilots. He apparently wanted his fellow VIPs to feel relaxed, and a tradition was launched.

Since then, the APEC leaders have posed together in batik shirts (Malaysia, 1998), Chinese jackets (Shanghai, 2001), flowing ponchos (Chile, 2004) and "ao dai” tunics (Vietnam, 2006.) The Philippines’ barong tagalog, a partially see-through, embroidered shirt sewn from pineapple fiber and silk, was featured in the 1996 summit and again in 2015.

It's not clear if the matching outfits will be back this year. The last time the U.S. hosted the conference, in Hawaii in 2011, President Barack Obama nixed the idea. A reporter asked whether it was scrapped because the tradition felt too light-hearted amid ongoing concerns about the economy.

No. Obama just thought they looked embarrassing.

AP

Laxmi Puja and Kukur Tihar are being observed today by worshiping, garlanding and feeding cows and dogs.

Laxmi, the Goddess of wealth, is being worshiped in every household today to mark the second day of the five-day Tihar festival –also known as the festival of lights – by lighting butter lamps and candles inside and outside of the households to light up the path of Goddess Laxmi in order to welcome her.

Nepali Hindus worship Goddess Laxmi in the evening today wishing for prosperity.

All the nooks and corners of the house are illuminated with colorful and decorative lights this evening in the belief that Goddess Laxmi does not visit places that are not properly illuminated, and so to please Goddess Laxmi, people light lamps and spend the whole night in vigil.

The night of Laxmi Puja is also a start of the cultural programs like ‘Deusi’ and ‘Bhailo’, where people, said to be sent by the king Bali, visit different homes singing and dancing for prosperity. In Kukur Tihar, dogs are worshiped as protectors of the house.

A dog is the most loyal friend to human beings, and according to Hindu myth, dogs are regarded as the guards of Yama, the god of death.

Deepawali, which literally means ‘the row of lamps’ is celebrated as the festival of lights in the month of October or November (Asoj or Kartik), about a fortnight after Dashain. This festival is also called Tihar, which lasts for five consecutive days and is observed in honor of Laxmi, the goddess of wealth and good luck. It is the most friendly festival observed throughout Nepal and also India. Laxmi, the goddess of prosperity and good fortune is invited into every home. People enjoy five days of feasting and family gatherings. It also heralds the advent of autumn in Nepal. Natural scenery is very pleasant during this time of the year. 

The aroma of Deepawali pervades the atmosphere several days before the actual festival begins. During Deepawali, traditional lamps are lit with twisted cotton wicks (Batti) saturated with pure ghee or mustard oil in a small earthen bowl called Diya. So it is also called Diyabati. It is usually solemnized in the last week of October or the first week of November on the occasion of Amabasya or Aunsi (full dark night of Kartik) according to the Nepali lunar calendar. In this period, the sky is starry but the moon is missing in the milky sky throughout the whole night. A gentle, genial and warm weather continues and purifies the mind of the Nepali people during this festival. This festivity reflects true rejoicing and jubilation of the masses.

Laxmi Puja is observed on the auspicious occasion of Deepawali. This is the third day of Tihar when the sacred cow is worshiped with great honor. Hindus worship and regard the cow as their holy mother. So people worship the cow in the morning with garlands of flowers and apply red tika on her forehead. Thus the Hindus pay their tribute to the mother cow. The ceremony is solemnized with reverence in the morning hour of Deepawali. This tradition was initiated by the people of Ayodhya  to express their boundless joy when Lord Rama returned after 14 years’ exile. This is illustrated in the Ramayan.

A few days before Tihar, preparations are in full swing for cleaning and whitewashing to add a new look to houses and buildings. During this festival, houses, shops, offices, factories and mills are brightly decorated with lights. They are also illuminated with electric bulbs and traditional lamps. It is a time of lights and decorations. This type of illumination is done for five consecutive days, beginning from the first day of Tihar. But special light arrangements are done on the day of Laxmi Puja. Oil-fed traditional lamps light courtyards, doorways, roof-tops, verandahs and windows. All streets and roads are full of flags and beautiful banners. People stroll around in new clothes and buy sweets and gifts. 

After the illumination in the evening, the main part of Laxmi Puja is performed at night. An illuminated and well-decorated house is believed to draw the goddess of prosperity. This also makes for easy entrance of Laxmi to every house. It is believed that the goddess of wealth is ritually invited to enter the house and offer blessing to its occupants. For this purpose, a ritualistic drawing is made of purified cow-dung plaster to guide Laxmi through the main door. From the drawing, a trail of plaster of rice and red vermillion leads into the house and the room where Laxmi is worshiped with utmost devotion and dedication. 

A beautifully decorated image of Goddess Laxmi is placed before the family treasure box or safe, which contains hard cash, jewels and jewelleries, valuable documents, ornaments and cheque books. Prayers are offered, believing that the fortunes will grow.

Throughout the whole night the earthen lamps filled with ghee or pure mustard oil, are kept burning at the place where the goddess of wealth is worshiped. To please this prosperous and generous goddess of good luck all the doors and windows of the house are decorated attractively. Nobody wants to miss this golden opportunity. Thus there is competition in the worship of the wealth goddess. Everybody tries his best to welcome and please the goddess of prosperity. She loves lights and sacred cowrie shells. Children love to play with fireworks during Tihar, especially during Laxmi Puja. However, as free crackers could be dangerous and harmful, they are banned in Nepal these days.

It is understood that being the wife of Lord Vishnu, Laxmi is the paragon of beauty, who sprang from the fathom of the sea when Gods and the Demons churned the sea together. There was a tug-of-war between Gods and Demons. At last, Lord Vishnu chose her as his life partner. She wears a crown of jewels and garlands of scented flowers. Her arms are bedecked with heavenly gems. She is herself considered a valuable treasure of the ocean. She holds a conch shell in one hand, blossomed lotus in the other, a sheaf of rice in the third one and a jar full of nectar in her fourth hand. She loves to rest on a fully-blown lotus with her husband Vishnu under the shadow (hood) of Sheshnag (mythological snake).

The Nepalis worship this benevolent goddess and offer gifts and sweets to please her. She is believed to travel around the earth on an owl, her vehicle, making house-to-house inspection to see whether it is clean or not. Being a lover of light, she also observes whether a light is left burning throughout the whole night in her honor or not. She thus visits every house. If pleased, she protects all the valuable things and grain-stores of each family and grants prosperity for the coming year. For this purpose, every house is decorated with red powder, flowers and festoons. She likes to visit only those houses, which are fully prepared and artistically decorated. 

All monetary transactions are forbidden on this auspicious occasion. The only exception is the giving of small coins and food (Selroti) to small groups of Bhailo singers. Groups of singers go door to door singing and dancing and asking for money. This is a time-honored tradition. Girls are supposed to ask for money on this solemn occasion. Boys’ turn comes the next day, which is called Deusi. 

Deepawali is also considered auspicious for gambling. Before 1940, gambling was legal in Nepal during the five days of Tihar. Nowadays, it is banned in public according to the law but people still gamble in their houses. Happy gamblers assemble at certain houses; sit on carpets shouting their bets, throwing the cowrie shells. In the ancient days, cowrie shells were considered a medium of exchange. It is believed that Laxmi loves gambling. 

The final day of Tihar is spent in friendly family gambling. 

Before 1940, during the five days of Tihar troupes of musicians used to go around the town announcing that games were now open to all. Gambling seems to receive semi religious sanction during Tihar in the belief that it is pleasing to Goddess Laxmi.

Newars of the Kathmandu valley perform Mha Puja on the first day of the bright lunar fortnight of Kartik. It is the worship of one’s body or self. It is believed that the human body is divine and the heavenly spirit dwells in it. The Puja is performed for purifying the heart and the soul for the coming New Year. The day also honors Yama, the lord of death. 

On the last day of Tihar called Bhai Tika, sisters worship their brothers, who bestow blessings and benediction upon their sisters for a long and prosperous conjugal life. Sisters also pray to God for their brothers' long life and wish them success in all walks of life. 

Dr Nihar R Nayak is a Research Fellow with Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA), New Delhi. His areas of expertise include political transitions in the eastern Himalayan region, non-traditional security, soft power diplomacy, left-wing extremism, and cooperative security in South Asia. Dr Nayak closely follows Nepal-India relations. Kamal Dev Bhattarai recently talked to Dr Nayak to gain insights into the current state of bilateral relations. Excerpts:

How do you assess the current state of Nepal-India relations?

Comparing it to the period of 2015-2016, there has been significant improvement in bilateral relations. Misunderstandings have substantially decreased, and bilateral mechanisms are functioning on schedule. Regular high-level political visits indicate that the bilateral relationship is in good shape. There has been good progress in energy cooperation with India addressing some concerns. While the overall relationship is in good shape, it remains complex, with certain pending issues yet to be addressed.

What are the pending issues that you are referring to?

The Nepali side has long been urging the update of the 1950 Peace and Friendship Treaty which is a major issue. Another issue is the submission of the EPG report, and border demarcation and map issues are also unresolved. The Boundary Working Group is yet to submit its report despite holding some meetings. The map row is yet to be resolved. A mechanism led by foreign secretaries was set up in 2014 to resolve border issues. But no dialogue has been taken so far under this format. There also are other issues such as air routes and trade and transit matters.

How do you view Prime Minister Pushpa Kamal Dahal’s relationship with New Delhi?

The current coalition aligns with India’s interests in the Himalayan region. India's experience with the previous government was not very comfortable as there were many misunderstandings with the CPN-UML-led government in Kathmandu. A non-controversial and friendly government in Kathmandu, like the current Maoist and NC coalition, somehow suits India's interests at this moment.

As a scholar, how do you see Dahal’s relationship with Beijing?

Regardless of who is the prime minister, Nepal must maintain a balanced relationship with Beijing and New Delhi. The foreign policy from King Mahendra's era in the 1960s is still continuing in Nepal. I do not see any deviation in that policy. India will engage with whoever comes to Baluwatar. Undertaking a bilateral visit to neighboring countries is a very regular issue. While analyzing the recent visit, I do not think it was a successful visit in terms of substance. Diplomatically, there was no major success though he spent seven days in China.  Although the two sides had 13 agreements, there were no major agreements during the visits. There were no promises on BRI, no agreement on power trade, and no major understanding on infrastructure development. This suggests that Dahal is not very close to Beijing.

American assistance and engagement with Nepal has increased lately. How do you see it?

American policy in the Himalayan region seems somewhat at odds with building a strong partnership between India and the US. For example, the US has increased its annual aid to civil society in Nepal. Interestingly, the same civil society is critical of India's engagement with Kathmandu. This means, indirectly, the US funds are being utilized against India. I believe that American interests to some extent do not synchronize what India is trying to do in the region. I see there is a communication gap between the US and New Delhi in this matter.