Biden and Xi discuss Taiwan, AI and fentanyl in a push to return to regular leader talks

U.S. President Joe Biden and Chinese President Xi Jinping discussed Taiwan, artificial intelligence and security issues on Tuesday in a call meant to demonstrate a return to regular leader-to-leader dialogue between the two powers.

The call, described by the White House as “candid and constructive,” was the leaders’ first conversation since their November summit in California produced renewed ties between the two nations’ militaries and a promise of enhanced cooperation on stemming the flow of deadly fentanyl and its precursors from China.

Also read | China tells U.S. will ‘never compromise’ on Taiwan

Mr. Xi told Mr. Biden that the two countries should adhere to the bottom line of “no clash, no confrontation” as one of the principles for this year.

“We should prioritize stability, not provoke troubles, not cross lines but maintain the overall stability of China-U.S. relations,” Mr. Xi said, according to China Central Television, the state broadcaster.

The roughly 105 minute call kicks off several weeks of high-level engagements between the two countries, with Treasury Secretary Janet Yellen set to travel to China on Thursday and Secretary of State Antony Blinken to follow in the weeks ahead.

Mr. Biden has pressed for sustained interactions at all levels of government, believing it is key to keeping competition between the two massive economies and nuclear-armed powers from escalating to direct conflict. While in-person summits take place perhaps once a year, officials said, both Washington and Beijing recognise the value of more frequent engagements between the leaders.

The two leaders discussed Taiwan ahead of next month’s inauguration of Lai Ching-te, the island’s President-elect, who has vowed to safeguard its de-facto independence from China and further align it with other democracies. Mr. Biden reaffirmed the United States’ longstanding “One China” policy and reiterated that the U.S. opposes any coercive means to bring Taiwan under Beijing’s control. China considers Taiwan a domestic matter and has vigorously protested U.S. support for the island.

Taiwan remains the “first red line not to be crossed,” Mr. Xi told Mr. Biden, and emphasised that Beijing will not tolerate separatist activities by Taiwan’s independence forces as well as “exterior indulgence and support,” which alluded to Washington’s support for the island.

Mr. Biden also raised concerns about China’s operations in the South China Sea, including efforts last month to impede the Philippines, which the U.S. is treaty-obligated to defend, from resupplying its forces on the disputed Second Thomas Shoal.

Next week, Mr. Biden will host Philippines President Ferdinand Marcos Jr. and Japanese Prime Minister Fumio Kishida at the White House for a joint summit where China’s influence in the region was set to be top of the agenda.

Mr. Biden, in the call with Mr. Xi, pressed China to do more to meet its commitments to halt the flow of illegal narcotics and to schedule additional precursor chemicals to prevent their export. The pledge was made at the leaders’ summit held in Woodside, California, last year on the margins of the Asia-Pacific Economic Cooperation meeting.

At the November summit, Biden and Xi also agreed that their governments would hold formal talks on the promises and risks of advanced artificial intelligence, which are set to take place in the coming weeks. The pair touched on the issue on Tuesday just two weeks after China and the U.S. joined more than 120 other nations in backing a resolution at the United Nations calling for global safeguards around the emerging technology.

Mr. Biden, in the call, reinforced warnings to Mr. Xi against interfering in the 2024 elections in the U.S. as well as against continued malicious cyberattacks against critical American infrastructure.

He also raised concerns about human rights in China, including Hong Kong’s new restrictive national security law and its treatment of minority groups, and he raised the plight of Americans detained in or barred from leaving China.

The Democratic president also pressed China over its defense relationship with Russia, which is seeking to rebuild its industrial base as it presses forward with its invasion of Ukraine. And he called on Beijing to wield its influence over North Korea to rein in the isolated and erratic nuclear power.

As the leaders of the world’s two largest economies, Mr. Biden also raised concerns over China’s “unfair economic practices,” National Security Council spokesman John Kirby said, and reasserted that the U.S. would take steps to preserve its security and economic interests, including by continuing to limit the transfer of some advanced technology to China.

Mr. Xi complained that the U.S. has taken more measures to suppress China’s economy, trade and technology in the past several months and that the list of sanctioned Chinese companies has become ever longer, which is “not de-risking but creating risks,” according to the broadcaster.

Yun Sun, director of the China program at Stimson Center, said the call “does reflect the mutual desire to keep the relationship stable” while the men reiterated their longstanding positions on issues of concern.

The call came ahead of Yellen’s visit to Guangzhou and Beijing for a week of bilateral meetings on the subject with finance leaders from the world’s second largest economy — including Vice Premier He Lifeng, Chinese Central Bank Gov. Pan Gongsheng, former Vice Premier Liu He, American businesses and local leaders.

An advisory for the upcoming trip states that Ms. Yellen “will advocate for American workers and businesses to ensure they are treated fairly, including by pressing Chinese counterparts on unfair trade practices.”

It follows Mr. Xi’s meeting in Beijing with U.S. business leaders last week, when he emphasized the mutually beneficial economic ties between the two countries and urged people-to-people exchange to maintain the relationship.

Mr. Xi told the Americans that the two countries have stayed communicative and “made progress” on issues such as trade, anti-narcotics and climate change since he met with Mr. Biden in November. Last week’s high-profile meeting was seen as Beijing’s effort to stabilize bilateral relations.

Ahead of her trip to China, Ms. Yellen last week said that Beijing is flooding the market with green energy that “distorts global prices.” She said she intends to share her beliefs with her counterparts that Beijing’s increased production of solar energy, electric vehicles and lithium-ion batteries poses risks to productivity and growth to the global economy.

U.S. lawmakers’ renewed angst over Chinese ownership of the popular social media app TikTok has generated new legislation that would ban TikTok if its China-based owner ByteDance doesn’t sell its stakes in the platform within six months of the bill’s enactment.

As chair of the Committee on Foreign Investment in the U.S., which reviews foreign ownership of firms in the U.S., Ms. Yellen has ample leeway to determine how the company could remain operating in the U.S.

Meanwhile, China’s leaders have set a goal of 5% economic growth this year despite a slowdown exacerbated by troubles in the property sector and the lingering effects of strict anti-virus measures during the COVID-19 pandemic that disrupted travel, logistics, manufacturing and other industries.

China is the dominant player in batteries for electric vehicles and has a rapidly expanding auto industry that could challenge the world’s established carmakers as it goes global.

The U.S. last year outlined plans to limit EV buyers from claiming tax credits if they purchase cars containing battery materials from China and other countries that are considered hostile to the United States. Separately, the Department of Commerce launched an investigation into the potential national security risks posed by Chinese car exports to the U.S.

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Explained | What is China’s new law on foreign relations?

The story so far: On June 28, China’s National People’s Congress, the Communist Party-controlled legislature, adopted a new Law on Foreign Relations of the People’s Republic of China, which came into effect on July 1. The law will tighten President Xi Jinping’s control over foreign policy, which has, since his taking office in 2012, become increasingly centralised.

What is the new law?

The law involves foreign affairs, and as the very first article puts it, it was drafted to “safeguard China’s sovereignty, national security and development interests”. Explaining the need for the law, an unnamed official of the National People’s Congress (NPC) told state media the “legal system concerning foreign affairs still has some shortcomings” and “gaps exist in laws safeguarding national sovereignty, security and development interests.” The official said that “speeding up the building of the legal system concerning foreign affairs will help China more effectively deal with risks and challenges.”

The broader aim of the law appears to be aimed at giving a legal stamp to many of the key objectives of Chinese foreign policy under Mr. Xi, and to make it a punishable offence if individuals or organisations were deemed to act against those objectives. In a similar vein, a border law was adopted in October 2021 that warned against “any act that undermines territorial sovereignty and land boundaries”.

What will be the impact on foreign policy?

The centralisation of Chinese foreign policy under Mr. Xi now has a legal stamp, and challenging it may be deemed as a violation of Chinese laws.

The law specifically mentions several key initiatives championed by Mr. Xi, such as the Belt and Road Initiative (BRI), the Global Development Initiative (GDI) and the Global Security Initiative (GSI).

The law also emphasises sovereignty and security as being at the heart of Chinese foreign policy. While this was, to some extent, always the case, the new law coincides with a broader political shift in China that many observers say has, for the first time in the reform era, prioritised security over development and opening up — a key change that will likely have long-term political and economic ramifications.

For instance, the law says China “has the right to take, as called for, measures to counter or take restrictive measures against acts that endanger its sovereignty, national security and development interests in violation of international law or fundamental norms governing international relations.” It also says “the state shall take measures as necessary in accordance with the law to protect the safety, security, and legitimate rights and interests of Chinese citizens and organizations overseas and safeguard China’s overseas interests against any threat or infringement.”

Chinese officials have said one of the objectives was a legal response to Western sanctions aimed at China. The law will reinforce the Law on Countering Sanctions and will essentially make it illegal for Western companies operating within China to comply with sanctions aimed at the country. In an article in the official People’s Daily on June 29, China’s top diplomat Wang Yi, who heads the Central Foreign Affairs Commission, said the context for the law was China “confronting a growing number of unpredictable factors” and facing the need to “continuously expand its legal ‘toolbox’ for ‘foreign struggles’”. “[We should] make full use of the Foreign Relations Law as a legal tool — through legislative, law enforcement, judicial and other means — to carry out our fight in response to acts of containment, interference, sanctions and destruction,” Mr. Wang was quoted as saying by the South China Morning Post. “The … law clearly opposes all hegemonism and power politics, and is against any unilateralism, protectionism and bullying acts… towards China,” he said.

Besides sanctions, another section of the law appears to be a response to criticisms of China’s foreign lending which has come under scrutiny amid debt crises in several of its partners. According to Article 19 of the new law, in providing aid Beijing would “respect the sovereignty of recipient countries” and “not interfere in their internal affairs or attach any political conditions to its aid”.

What does the new law mean for India?

As with the Border Law adopted in 2021, the emphasis of security, sovereignty and territorial integrity as key tenets of Chinese foreign policy coincide with the border dispute returning to the centre of India-China relations. Indian experts saw the Border Law as essentially looking to formalise China’s moves along the Line of Actual Control (LAC), with the transgressions of April 2020 upending both bilateral relations and decades-old mechanisms aimed at carefully managing the boundary dispute. The two laws also coincide with territorial disputes being framed by Beijing as matters of national sovereignty rather than issues to be negotiated by two sides — framing that may narrow the scope for resolution.

Article 6 of the new law says all “state institutions, armed forces, political parties, people’s organisations, enterprises, public institutions, other social organisations, and citizens have the responsibility and obligation to safeguard China’s sovereignty, national security, dignity, honour and interests in the course of international exchanges and cooperation.” Article 31 may have a potential bearing on the signing of agreements to resolve disputes, as it declares that “implementation and application of treaties and agreements shall not undermine the sovereignty of the State, national security and public interests”. Article 17 says the main aim of the conduct of foreign relations is “to uphold its system of socialism with Chinese characteristics, safeguard its sovereignty, unification and territorial integrity, and promote its economic and social development.” The law also says China will at the same time “grow relations with its neighbouring countries in accordance with the principle of amity, sincerity, mutual benefit and inclusiveness and the policy of enhancing friendship and partnership with its neighbours.”

Another article that will be scrutinised, particularly by Indian and foreign companies operating within China, is Article 8, which declares that “any organisation or individual who commits acts that are detrimental to China’s national interests in violation of this Law and other applicable laws in the course of engaging in international exchanges shall be held accountable by law.” Article 33 says the government “has the right to take, as called for, measures to counter or take restrictive measures against acts that endanger its sovereignty, national security and development interests in violation of international law or fundamental norms governing international relations.” What is deemed as “detrimental to China’s national interests” is not clear, giving the authorities a wide scope in how this may be implemented.

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