Biden and Xi's Crucial Talks at APEC: Navigating Tensions and Cooperation Ahead of U.S. Transition

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At the Asia-Pacific Economic Cooperation (APEC) forum in Lima, Peru, Chinese President Xi Jinping and U.S. President Joe Biden sat down for a critical two-hour meeting that covered a wide range of pressing global issues. The talks, which were their first in seven months, were held on the sidelines of the APEC summit and came at a pivotal time—just two months before former President Donald Trump returns to the White House. This context heightened the stakes of their discussions, with both sides keen to manage their complex relationship as the U.S. transitions from one administration to another.

A Changing Dynamic: Xi’s Call for Stability and Cooperation

Despite the uncertainty surrounding the U.S. political landscape, Xi made it clear that China’s goal of achieving a “stable, healthy, and sustainable” relationship with the United States would remain steadfast. Even with the turbulence of past tensions, particularly around issues like cybercrime, trade imbalances, Taiwan, and Russia, the Chinese president reiterated China’s willingness to collaborate with the incoming administration. "China is ready to work with the new U.S. administration to maintain communication, expand cooperation, and manage differences," Xi declared during the meeting. His message was an attempt to signal a path forward, despite the inevitable "ups and downs" in the bilateral relationship.

Biden, for his part, acknowledged the difficulties between the two nations but underscored the importance of frank and candid dialogue. He noted that, while their viewpoints on various matters often differ, these discussions were critical to maintaining some level of mutual understanding. The U.S. president also made it clear that these conversations would remain essential, even after his term ends, to ensure ongoing communication and stability between the two powers.

The Looming Transition: Risks of Conflict During the Changeover

The timing of the meeting also made it clear that both sides were acutely aware of the risks involved during the transition between Biden’s departure and Trump’s expected return. Many U.S. officials are increasingly concerned about the possibility of tensions escalating as China and the United States navigate this delicate period. With Trump’s campaign promising a tough approach toward China, including aggressive trade policies and tariffs, there is growing concern in Washington that these new measures could deepen the divide between the two countries.

In particular, Trump has proposed blanket tariffs of up to 60% on Chinese imports, a move Beijing has vehemently opposed. There’s also the expectation that hawkish voices, including U.S. Senator Marco Rubio and Representative Mike Waltz, will take up prominent positions in Trump’s administration. Both of these figures have been outspoken in their criticisms of China, particularly regarding human rights and military activities in the South China Sea. The result is a challenging dynamic that will require careful navigation in the months ahead.

Cybersecurity, Taiwan, and the South China Sea: Key Points of Tension

The conversation between Biden and Xi also focused on several contentious issues, including cybersecurity, Taiwan, and Beijing’s growing assertiveness in the South China Sea. These topics have been recurring sources of friction between the U.S. and China, with both sides holding firmly to their respective positions.

One of the most contentious issues raised during their talks was a recent cyber attack linked to Chinese actors. The hack, which targeted U.S. government communications and political campaign data, has led to heightened concerns over China’s growing cyber capabilities. Xi, however, denied any involvement in the breach, with Chinese state media quoting him as asserting that there was no evidence to support such claims. This denial comes amid broader concerns over cyber espionage, with both countries accusing each other of engaging in digital surveillance and theft of intellectual property.

On the issue of Taiwan, the two leaders appeared to have a sharp exchange. Biden raised concerns about Beijing’s "destabilizing" military activities around the island, which China claims as its own territory. Xi, on the other hand, framed the issue as one of Taiwan’s "separatist activities," accusing Taiwanese President Lai Ching-te of undermining peace in the region. The U.S. has long been Taiwan’s most important ally, despite the lack of formal diplomatic recognition, and it remains steadfast in its commitment to supporting Taiwan’s sovereignty.

Taiwan’s government expressed gratitude for Biden’s firm stance on the issue, with the country’s foreign ministry arguing that China’s military provocations were the root cause of regional instability. Taiwanese officials pointed to Beijing’s actions as a major threat not just to regional peace but also to global economic prosperity. Tensions over Taiwan continue to simmer, with both Beijing and Washington unwilling to compromise on their positions.

In addition to Taiwan, the South China Sea also featured prominently in the discussions. The waters have long been a flashpoint for territorial disputes, particularly between China and the Philippines, a U.S. ally. The U.S. has repeatedly called for freedom of navigation in the region, opposing China's expansive territorial claims. Beijing, however, has dismissed international rulings, such as the 2016 decision by The Hague-based Permanent Court of Arbitration, which declared China’s maritime claims to be without legal basis. Xi reiterated that the U.S. should not get involved in disputes concerning the Spratly Islands, which are subject to competing claims.

Shared Concerns: North Korea and the War in Ukraine

Another critical issue that emerged during the talks was the situation in North Korea, particularly its increasing cooperation with Russia. North Korea has been a close ally of China, and its growing ties with Moscow have raised alarms in Washington, as well as in European capitals. The potential for North Korea to deploy troops in support of Russia’s war in Ukraine is a development that has drawn sharp criticism from the U.S. and its allies.

Biden pressed Xi on China’s influence over North Korea, urging Beijing to use its leverage to prevent further escalation of the conflict, particularly the potential introduction of North Korean troops into the war in Ukraine. Xi’s response to these concerns was more guarded, with Beijing reiterating its position of calling for a peaceful resolution to the war, but also warning against any attempts to broaden the conflict.

The Latin American Diplomatic Offensive

While tensions between China and the U.S. dominate the headlines, Xi’s visit to Lima was also part of a broader diplomatic push in Latin America. China is making strategic moves to deepen its ties with the region, seeking access to critical resources like metal ores and soybeans, which are vital to its economic interests. During his visit, Xi secured a revamped free-trade agreement with Peru, and he is expected to launch major infrastructure projects, including a new deep-water port in Chancay.

China’s expanding presence in Latin America has raised eyebrows in Washington, which is increasingly concerned about the potential for China to establish military and intelligence outposts in the region. These fears have been exacerbated by reports of Chinese-backed media outlets spreading narratives that downplay such concerns. Still, there is little doubt that Beijing is keen to enhance its influence in the Americas, challenging the U.S.’s traditional dominance in the hemisphere.

Looking Ahead: Managing Competition and Cooperation

As both sides look to the future, the key challenge will be managing the balance between cooperation and competition. While there are clear areas of shared interest—such as managing North Korean provocations and preventing nuclear escalation—the broader U.S.-China relationship remains deeply fraught with conflict over trade, technology, and military tensions. The next few months will be pivotal as the U.S. navigates a new administration and China attempts to solidify its position on the world stage.

In conclusion, the meeting between Biden and Xi highlighted the complexity of the U.S.-China relationship at a moment of significant transition. As the two leaders face off on major geopolitical issues, the world watches closely, knowing that their actions and decisions will reverberate across the globe. Both nations must tread carefully, balancing rivalry and cooperation in a landscape that is increasingly fraught with tension. The road ahead may be uncertain, but one thing is clear: the stakes for global stability have never been higher.