Xi Jinping and Joe Biden summit: Economic implications take center stage

US President Joe Biden and Chinese President Xi Jinping, the leaders of the two largest economies in the world, are expected to meet on Wednesday, November 15, on the sidelines of Asia-Pacific Economic Cooperation (APEC) in San Francisco. Even though both sides have not formally announced the meeting date, White House Press Secretary Karine Jean-Pierre said on October 31 that Washington hoped for a "constructive conversation in San Francisco" between the two presidents.

Former US Secretary of State Hillary Clinton said this meeting is an opportunity for the two superpowers to "reset the table" and build confidence amid recent frosty relations. Clinton was speaking at the Bloomberg New Economy Forum in Singapore.

US business leaders stress the need for healthy competition rather than severing ties with China. Ken Griffin, the founder of the multinational hedge fund Citadel, emphasised the importance of strengthening American business and innovation to outperform China on the global stage.

Despite concerns over rising tensions, especially regarding Taiwan and the South China Sea, experts believe that cutting off China from goods, such as semiconductor chips, would not be a strategic move. Griffin argued that policies like the Chips Act could lead China to intensify its research and development efforts, urging the US to focus on becoming a more competitive force rather than isolating itself.

In a broader context, the Xi-Biden meeting is part of a larger US effort to engage with China and address issues that have strained relations in recent years. The leaders of the world's two largest economies are set to have a "tough conversation," with expectations of progress in various areas, including military communications and cooperation on global challenges.

With the ongoing conflicts involving Israel, Hamas, and Russia's invasion of Ukraine, the US-China relationship faces additional strains. China's role as a crucial ally for Russia further complicates matters. The meeting aims to manage tensions and prevent disputes from escalating into open conflict.

Economic considerations are paramount, as both leaders seek to showcase their countries as dynamic economic partners.

As the global community watches this high-stakes summit, the economic implications of the Xi-Biden meeting extend beyond the immediate discussions, emphasising the need for strategic cooperation and healthy competition to navigate the complex landscape of US-China relations. The outcomes of this meeting will likely influence the trajectory of economic ties between the two nations and have ripple effects on the global economy.