Chinese leader Xi Jinping met with Joe Biden on Saturday.Carlos Garcia Granthon/Fotoholica Press/LightRocket/Getty Images
On Saturday, Chinese leader Xi Jinping presented his “four red lines” regarding US-China relations during a meeting with US President Joe Biden. The four critical issues identified are Taiwan, democracy and human rights, China’s development path and system, and the nation’s rights to development. “They must not be challenged,” Xi stated, as per a release following their meeting on the sidelines of the 31st APEC Economic Leaders’ Meeting in Lima, Peru.
Xi emphasized that these are the most crucial guardrails and safety nets for relations between China and the US. Among these issues, Taiwan stands out as the most sensitive, a point Xi has reiterated over the years.
Beijing asserts that Taiwan is part of its territory and has recently indicated that it will not renounce the possibility of using force regarding the island. Taiwan is strategically significant to the US, being a leading hub for semiconductor chip production and a vital security area. However, the presidency of Trump has already heightened risks for Taiwan. In June, Trump mentioned to Bloomberg Businessweek that Taiwan should compensate the US for its defense.
Xi’s remarks come amid worries that the two largest economies in the world may be heading toward conflict following Trump’s inauguration on January 20. The incoming president has nominated Florida Senator Marco Rubio, known for his hardline stance on China, as Secretary of State. Trump has also threatened to impose tariffs of 60% on China. Despite indications that the two superpowers may face more turbulent times, Xi and Biden aimed to adopt a conciliatory approach towards their bilateral relationship during their meeting on Saturday.
According to a White House summary of the meeting, the two leaders “stressed the importance of responsibly managing competitive aspects of the relationship,” as well as preventing conflict and ensuring open communication channels.
Nonetheless, Trump’s forthcoming presidency is expected to introduce new uncertainties, particularly concerning trade. “Trump is serious about his tariff statements,” noted Josh Lipsky, senior director at the Atlantic Council’s GeoEconomics Center, in a recent commentary.
Lipsky anticipates that Trump will initiate a new trade conflict on his first day in office by attempting to revive the trade agreement he signed with China in January 2020, which included a commitment from China to purchase $200 billion worth of American goods over two years, including $32 billion in agricultural products.
This agreement lapsed at the end of 2021, as the Chinese failed to fulfill their obligations, as stated by Sarah Bianchi, then deputy US trade representative, in February 2022. Lipsky suggests that Trump will likely seek to reinvigorate the trade deal as a “useful starting point” before the new tariffs are implemented.
