The meeting of U.S. President Joe Biden and Chinese President Xi Jinping last week has set the bottom line for the relationship between the two powerful nations, according to analysts. The summit took place in Woodside, California, during the Asia-Pacific Economic Cooperation conference.
Wang Dong, executive director of the Institute for Global Cooperation and Understanding at Peking University, commented that the summit showed a clear signal that both countries are committed to “recoupling” on the basis of reciprocity and mutual respect. The analysts made such comments after discussions and meetings at the Asia-Pacific Economic Cooperation CEO Summit last week.
Biden and Xi agreed on the need to address the risks of advanced AI systems and improve AI safety through government talks between the United States and China. They also agreed to restore military-to-military talks, which had been on a hiatus for over a year.
The meeting signaled that both countries are avoiding a downward spiral and are committed to cooperating in areas where interests align.
One example of the meeting’s impact was the approval granted by the People’s Bank of China for Mastercard’s joint venture in China to begin processing domestic payments, following a four-year wait.
While the meeting was successful in setting the tone for cooperation and problem-solving, there were no major breakthroughs or announcements involving initiatives such as the resumption of large-scale purchases of Boeing 737 Max aircraft by Chinese authorities.
Analysts are also considering potential external risks, particularly the potential effects of the 2024 U.S. presidential election and Taiwan’s upcoming elections.
While the meeting between Biden and Xi has been termed “very good” in the short term, there are doubts about the long-term implications of the consensus achieved, with some expressing concern about the U.S. fulfilling its promises.
Regarding business operations, U.S. companies continue efforts to derisk and diversify supply chains, with many maintaining a more cautious stance.
Overall, the meeting between Biden and Xi achieved significant strides in communication and mutual understanding but did not result in major deliverables or headlining global agreements.
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