Key Takeaways from Biden-Xi summit in California

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Biden meets Xi on the sidelines of APEC summit

United States President Joe Biden and Chinese leader Xi Jinping spoke for several hours just outside San Francisco on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit this week.

The two leaders spent four hours together which included expanded meetings, a working lunch, and a garden stroll at Filoli Estate in Woodside, California. Biden called the California talks as the “most constructive and productive” since he came to office.

Biden and Xi discussed increased cooperation on fentanyl chemicals, resumed military-to-military dialogues, the use of artificial intelligence in military applications, joint climate action and global issues including Russia’s war in Ukraine and Israel’s war and the unfolding crisis in Gaza. The direct talks were held after several years of deteriorating relations and frozen communication between Washington and Beijing.


This was the first meeting between the leaders of the world’s two biggest economies since their last encounter, in Bali, Indonesia. Biden and Xi have had a long working relationship from when they were both vice presidents. “It was 12 years ago,” Xi said. “I still remember our interactions very vividly, and it always gives me a lot of thoughts.” Biden also emphasized the value of their interactions. “We haven’t always agreed, which was not a surprise to anyone, but our meetings have always been candid, straightforward and useful,” Biden said.

At the same time, Biden emphasized that the two countries are competitors, but added that “the world expects the United States and China to manage competition responsibly to prevent it from veering into conflict, confrontation, or a new Cold War.”

The Chinese leader emphasized that China will not fight cold or hot war with anyone. “China does not seek spheres of influence and will not fight a cold war or a hot war with anyone,” Chinese President Xi Jinping said during a speech in San Francisco.


Key Takeaways from Biden-Xi summit

From the White House’s perspective, the most successful outcome of the discussions was Beijing’s commitment to curb illicit fentanyl production and resumption of a military-to-military dialogue. Here are the key takeaways:


1. U.S. and China to resume military-to-military communications

The top military leaders of China and the United States will resume talks as Biden and Xi agreed to to reinstate paused defense policy coordination talks, military maritime consultation meetings, and direct telephone links between operational commanders. The U.S. president emphasized the importance of open communications between the two presidents, saying that “He and I agreed that each one of us can pick up the phone call directly, and we’ll be heard immediately.”

However, none of these channels are new, or sufficient to mitigate growing military tension between Washington and Beijing. Defense contact was suspended after then-House of Representatives speaker Nancy Pelosi visited Taiwan in August 2022.


2. U.S. and China agree to curb illicit fentanyl

Biden and Xi welcomed the establishment of a counternarcotics working group to prevent illegal drug manufacturers from obtaining Chinese-made precursor chemicals to produce fentanyl and other substances. This will curb the production of the opioid fentanyl, a leading cause of drug overdoses in the United States. “It’s going to save lives,” Biden said, adding he appreciated Xi’s “commitment” on the issue. China pledged to take action against chemical companies to curb the flow of illegal fentanyl into the U.S., contributing to a significant increase in overdose deaths. The synthetic opioid is linked to approximately 75,000 deaths in the U.S. last year.



3. Disagreement on Taiwan

Despite some developments during the Biden-Xi summit, there was little progress made on the issue of Taiwan. Biden reaffirmed the U.S. commitment to the longstanding “One China Policy” but also reiterated the U.S. opposition to unilateral changes to the status quo. Biden called for restraint from the People’s Republic of China (PRC) on military activities in the region, underscoring global interests in peace and stability in the Taiwan Strait.

President Xi Jinping reiterated China’s principled stance on the Taiwan issue, calling it the most important and sensitive aspect of China-U.S. relations. Xi warned Biden to stop arming Taiwan, according to a readout from China’s foreign ministry. “The US side should … stop arming Taiwan, and support China’s peaceful reunification,” Xi told Biden. However, Biden reiterated that the US would continue to arm Taiwan as a deterrent. This year, the Biden administration approved the first-ever tranche of $80 million in funds for Taiwan to purchase American military equipment under the Foreign Military Financing (FMF) program. China deplored and opposed the move.


4. Biden asked Xi to use his influence on Iran and Russia

President Biden and President Xi also discussed the two ongoing major wars – the Ukraine-Russia war and the Israel-Palestine conflict – in their intensive meetings in San Francisco. Biden and his national security advisers made efforts convince their Chinese counterparts it is in Beijing’s interests to use its leverage with Russia and Iran to keep both wars contained. In their private session, Biden appealed to Xi to use his influence to try to calm global tensions, particularly to try to pressure Iran not to widen the conflict between Israel and Hamas.

Biden Xi walk in gardens at Filoli Estate
U.S. President Joe Biden in a conversation with Chinese President Xi Jinping during a walk in the gardens at Filoli Estate in Woodside, California, on November 15, 2023. (Image Credit: AP)

A U.S. official said that Biden did most of the talking on this topic, and that Xi mostly listened. Biden has also pressed Xi to continue to withhold military support for Russia’s invasion of Ukraine.

5. Xi asked Biden to lift sanctions and change export controls

The Biden-Xi summit in San Francisco comes at a time when China is grappling with economic challenges amid slow post-pandemic recovery. In San Francisco, Xi pressed Biden to lift sanctions and change policies on export controls for sensitive equipment. “Stifling China’s technological progress is nothing but a move to contain China’s high-quality development and deprive the Chinese people of their right to development,” the Chinese government readout said. Xi reiterated China’s support for more open trade policies rather than protectionism and noted that the world “is big enough for the two countries to succeed.”

While there is no clear indication that Biden will agree to these requests, the meeting itself has the potential to alleviate concerns in China, particularly amid signs of a decline in foreign investment. President Biden also raised concerns about the PRC’s “unfair trade practices, non-market economic approaches, and punitive actions against U.S. firms”.


6. China ready to be a ‘partner and friend’ of the U.S.

China is “willing to be a partner and a friend of the United States”, and there is plenty of room for bilateral cooperation, President Xi Jinping told American executives in San Francisco as he sought to attract U.S. businesses amid a decline in foreign investment in China. In a speech event on the sidelines of the Asia-Pacific Economic Cooperation (APEC), Xi told the forum that the most fundamental question shaping bilateral relations is whether they the countries are rivals or partners. “If we regard each other as the biggest rival, the most significant geopolitical challenge and an ever-pressing threat, it will inevitably lead to wrong policies, wrong actions and wrong results,” Xi told an audience that included Apple CEO Tim Cook and Tesla CEO Elon Musk.


Xi Jinping announced that China will invite 50,000 young Americans to visit China for exchanges and studies over the next five years, Xi said. “We need to build more bridges and pave more roads for people-to-people exchanges, instead of erecting various obstacles and creating a chilling effect,” Xi said.


7. Artificial Intelligence

The Biden-Xi summit led to an agreement to set up formal government-to-government discussions on the technology. “The leaders affirmed the need to address the risks of advanced AI systems and improve AI safety through U.S.-China government talks,” the White House readout said. However, details on the form and substance of the discussion remain unclear.

Executives from U.S. corporate giants such as Apple’s Tim Cook, Tesla CEO Elon Musk, BlackRock’s Laurence Fink, Broadcom’s Hock Tan, Bridgewater Associates’ Ray Dalio and Pfizer’s Albert Bourla dined with Xi on the margins of the APEC forum. Xi met Musk and expressed support for Tesla’s development in China.


8. Panda Diplomacy

President Xi suggested that China will renew its “Panda Diplomacy” with the United States by sending the bears to American zoos. “Pandas have long been envoys of friendship between the Chinese and American peoples,” Xi said during a dinner with business executives. “We are ready to continue our cooperation with the United States on panda conservation, and do our best to meet the wishes of the Californians so as to deepen friendly ties between our peoples.”

Last week, the United States witnessed panda-monium as the Smithsonia’s National Zoo in Washington sent its two aging adult pandas, Mei Xiang and Tian Tian, along with their cub, Xiao Qi Ji, back to China. Their return was prompted by the expiration of a three-year pandemic-era extension to agreements between the National Zoo and the China Wildlife Conservation Association, its Chinese partner.