by Brandon Goldman @realbgold
On November 15, US President Joe Biden and President Xi Jinping of China met for a four-hour discussion (in a suddenly cleaned-up San Francisco) of sensitive issues concerning both countries.
Strengthening Communications
Prior to his encounter with Xi, President Biden told the media that he was focused on improving communications, including military communications, between the two nations. He commented, “[President Xi] and I agreed that each one of us can pick up the phone, call directly, and we’ll be heard immediately.”
Stopping the Flow of Fentanyl
The two leaders also discussed cutting the flow of fentanyl from China into the United States. Few details have been made available regarding their plan to curb the output of the deadly synthetic drug, but President Biden conveyed his appreciation of Xi’s commitment to the issue, saying, “It’s going to save lives.”
In 2018, an agreement between Presidents Trump and Xi cracked down on the flow of fentanyl coming out of China. Since then, much of its production has moved to Mexico. The raw materials for the drug, however, are still largely exported from China.
Now, in 2023, there are more than 100,000 deaths per year from fentanyl use in the US alone. Experts are concerned that even if fentanyl was eradicated, a new, deadlier drug would take its place. In particular, the drug “Tranq” has been found in major cities such as Philadelphia and is described as “‘The deadliest drug threat our country has ever faced.'”
Biden, Xi Talk Taiwan
For the past few decades, Taiwan has been strengthening its army and navy, and, with US support, the Taiwanese are now prepared for a potential Chinese invasion of their island.
For this reason, President Xi urged Biden to stop sending arms to Taiwan since Xi is committed to the reunification of China.
Up to this point, the US foreign policy consensus has always been to protect Taiwan, including the Taiwan Strait, from Chinese incursion. Since its declared independence, the island has been an important American ally in the region.
However, the US has also historically maintained support for the One China policy, an agreement that dates back to 1979 and recognizes the People’s Republic of China’s sole authority over all of China, including Taiwan. Yet, there has always been an understanding that China would not seize control of the island, as it has remained independently governed since 1949. But many in the foreign policy establishment now fear an impending Chinese takeover, similar to the recent seizure of Hong Kong.
Despite American military support for Taiwan, President Biden reiterated his support for the One China policy.
President Xi underscored that he was intent on “peaceful” reunification with Taiwan – a move that, should it come to pass, would further shift the geopolitical sands and strengthen China’s economic grip on the entire world.
Taiwan’s importance in the world economy cannot be overstated; they produce around 60% of all semiconductors and almost all of the most advanced ones. These semiconductors are used in nearly every country in the world in the most vital technologies, including smartphones, computers, cars, televisions, and medical equipment.
The Taiwan Semiconductor Manufacturing Company controls nearly all of the production of these chips and is even in the process of completing a $40 billion manufacturing plant in Arizona – a major part of President Biden’s 2021 CHIPS Act.
Biden, Xi Discuss Business and Chinese Investment
President Xi also appeared at a dinner with American business leaders at the Asia Pacific Economic Cooperation Summit, urging further investment in Chinese companies. This comes at a time when the Chinese economy has been slowing, led by a worrying decline in their real estate sector.
American investors are reportedly wary of continuing to support Chinese businesses. Economic competition between the US and China, along with military conflict around the globe, has made it difficult for investors to remain confident about the future of the Chinese market.
China also remains a strong ally of Russia and Iran, and with both of those states embroiled in wars of aggression, investors are skeptical of steady economic growth in China’s future.
The bilateral discussions of the Biden, Xi meeting did not officially lead to any commitments or agreements. President Biden seemed content simply to improve communications between the US and China and to make each other’s positions clear regarding the future of Taiwan.