President Joe Biden and Chinese President Xi Jinping recently held a call to discuss various issues, including Taiwan, artificial intelligence, and security concerns. This conversation marks a return to regular leader-to-leader dialogue between the two powerful nations. The call comes after a successful summit in California last November, which led to improved ties between the two countries’ militaries and enhanced cooperation on combating the flow of fentanyl and its precursors from China. Both leaders recognize the importance of sustained interactions to prevent conflicts between their massive economies and nuclear-armed powers.
During the call, Biden and Xi discussed Taiwan, with Biden reaffirming the United States’ support for the island’s de-facto independence and opposition to any coercive means to bring Taiwan under Beijing’s control. The leaders also addressed China’s operations in the South China Sea, particularly recent efforts to impede the Philippines from resupplying its forces on a disputed shoal. Biden will host Philippines President Ferdinand Marcos Jr. and Japanese Prime Minister Fumio Kishida at the White House next week for a joint summit where China’s influence in the region will be a key topic of discussion.
Biden urged China to do more to combat the flow of illegal narcotics and scheduled additional precursor chemicals to prevent their export. The leaders also agreed to hold formal talks on the promises and risks of advanced artificial intelligence in the coming weeks. Biden reiterated warnings to Xi against interfering in the 2024 U.S. elections and committing malicious cyberattacks against American infrastructure. Additionally, Biden raised concerns about human rights issues in China, particularly in Hong Kong and treatment of minority groups, as well as the defense relationship between China and Russia.
U.S. Treasury Secretary Janet Yellen is set to travel to China for high-level bilateral meetings with finance leaders to advocate for American workers and businesses being treated fairly in trade practices. Yellen expressed concerns about China’s increased production of green energy technologies, such as solar energy, electric vehicles, and lithium-ion batteries, which she believes could disrupt global prices and pose risks to the global economy. The U.S. lawmakers’ concerns over Chinese ownership of TikTok have led to new legislation that could ban the app if its China-based owner does not sell its stakes within six months.
As China aims for 5% economic growth this year, challenges remain due to the slowdown exacerbated by troubles in the property sector and lingering effects of anti-virus measures during the COVID-19 pandemic. China’s dominance in batteries for electric vehicles and its rapidly expanding auto industry pose challenges for established carmakers worldwide. The U.S. has outlined plans to limit tax credits for EV buyers if they purchase cars containing battery materials from China and other countries considered hostile. The Department of Commerce has also launched an investigation into national security risks posed by Chinese car exports to the U.S.
