# Biden begins fifth call with China’s Xi, looking to tamp down Taiwan tension Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-07-28 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Biden and Xi Jinping discuss Taiwan tensions in fifth call Meta Description: Read about the latest call between US President Joe Biden and China's Xi Jinping, addressing tensions over Taiwan and other key global issues. URL: https://financedigest.com/biden-begins-fifth-call-with-chinas-xi-looking-to-tamp-down-taiwan-tensionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-07-28t050433z1lynxmpei6r04frtroptp4usa-china-biden-xi-1736815524183-compressed.jpg) By Steve Holland and Michael Martina WASHINGTON (Reuters) -U.S. President Joe [Biden and China’s](https://www.financedigest.com/biden-signs-bill-to-boost-u-s-chips-compete-with-china.html "Biden signs bill to boost U.S. chips, compete with China") Xi Jinping began their fifth call as leaders on Thursday, as concerns mounted over a possible visit to Chinese-claimed Taiwan by U.S. House Speaker Nancy Pelosi. The White House said the call began at 8:33 a.m. (1233 GMT) and U.S. officials said it would have a broad agenda, including discussion of [Russia’s invasion of Ukraine](https://www.financedigest.com/russia-seizes-ukraine-nuclear-power-plant-as-forces-lay-siege-to-cities.html "Russia seizes Ukraine nuclear power plant as forces lay siege to cities"), which China has yet to condemn. At its core, U.S. officials see the exchange as another chance to manage competition between the [world’s two largest economies](https://www.financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economy.html "At China’s largest trade fair, exporters worry about world economy"), whose ties have been increasingly clouded by tensions over democratically governed Taiwan, which Xi has vowed to reunite with the mainland, by force if necessary. Beijing has [issued escalating warnings](https://www.financedigest.com/heatwave-scorches-europe-health-warnings-issued.html "Heatwave scorches Europe; health warnings issued") about repercussions should Pelosi visit Taiwan, a move that would be a dramatic, though not unprecedented, show of U.S. support for the island, which [says it is facing](https://www.financedigest.com/france-says-belarus-could-face-more-sanctions-if-it-gets-increasingly-involved-in-ukraine-conflict.html "France says Belarus could face more sanctions if it gets increasingly involved in Ukraine conflict") increasing Chinese military and economic threats. Washington does not have official relations with Taiwan and follows a “one-China” [policy that recognizes Beijing](https://www.financedigest.com/beijing-nervously-returns-to-work-as-china-doubles-down-on-zero-covid-policy.html "Beijing nervously returns to work as China doubles down on ‘zero-COVID’ policy"), not Taipei, diplomatically. But it is obliged by U.S. law to provide the island with the means to defend itself, and [pressure has been mounting](https://www.financedigest.com/factbox-global-banks-take-axe-to-jobs-as-cost-pressures-mount.html "Factbox-Global banks take axe to jobs as cost pressures mount") in Congress for more explicit support. This is about keeping the lines of communication [open with the president of China](https://www.financedigest.com/asia-shares-bank-on-eventual-china-opening-oil-gains.html "Asia shares bank on eventual China opening; oil gains"), one of the most consequential bilateral relationships that we have, not just in that region, but around the world, because it touches so much,” White House national security spokesman John Kirby told reporters on Wednesday. One person briefed on planning for the call said the Biden administration thinks leader-to-leader engagement is the best way to lower [tensions over Taiwan](https://www.financedigest.com/u-s-carrier-strike-group-returns-to-south-china-sea-amid-taiwan-tensions.html "U.S. carrier strike group returns to South China Sea amid Taiwan tensions"). Some analysts believe Xi also has an interest in avoiding escalation as he seeks an unprecedented third term in office at a congress of [China’s ruling](https://www.financedigest.com/stocks-advance-u-s-dollar-retreats-as-china-drops-quarantine-rule.html "Stocks advance, U.S. dollar retreats as China drops quarantine rule") Communist Party expected in the fall. Biden also wants to discuss climate and economic competition issues, the person briefed said, as well as the idea of placing a [price cap on Russian oil](https://www.financedigest.com/oil-prices-rise-on-u-s-drawdown-chinese-fears-weigh.html "Oil prices rise on U.S. drawdown, Chinese fears weigh") to punish Moscow for its war in Ukraine, an issue Treasury Secretary Janet Yellen raised with Chinese counterparts earlier in July. The Biden administration has been debating whether to lift some tariffs on Chinese goods as a way to [ease soaring inflation](https://www.financedigest.com/german-inflation-rate-to-ease-over-course-of-2023-econ-minister.html "German inflation rate to ease over course of 2023 – econ minister"), but U.S. [officials have said a decision was not expected](https://www.financedigest.com/u-n-expects-ukraine-russia-grain-deal-to-be-implemented-in-a-few-weeks-officials.html "U.N. expects Ukraine-Russia grain deal to be implemented in a few weeks -officials") ahead of the call. When Biden last spoke to Xi in March, he warned of “consequences” if Beijing gave material support for [Russia’s war](https://www.financedigest.com/russia-promises-to-scale-back-ukraine-war-but-west-sceptical.html "Russia promises to scale back Ukraine war but West sceptical"), and the U.S. government believes that that red line has not been crossed in the [months since](https://www.financedigest.com/uk-factories-suffer-worst-month-since-may-2020-as-economy-stumbles-pmi.html "UK factories suffer worst month since May 2020 as economy stumbles – PMI"). [Taiwan has complained of stepped-up Chinese military manoeuvres over the past two years to try and force](https://www.financedigest.com/biden-says-he-would-be-willing-to-use-force-to-defend-taiwan-against-china.html "Biden says he would be willing to use force to defend Taiwan against China") it to accept Beijing’s sovereignty. Just ahead of Thursday’s call, Taiwan’s military said it fired flares to [warn away a drone that “glanced by” a strategically located and heavily fortified island close to the Chinese](https://www.financedigest.com/chinese-fret-over-elderly-as-who-warns-of-holiday-covid-surge.html "Chinese fret over elderly as WHO warns of holiday COVID surge") coast that was possibly probing its defences. TOXIC TIES The White House has reiterated that its “one-China” policy has not [changed despite speculation over a possible trip by Pelosi](https://www.financedigest.com/pelosi-praises-taiwan-says-asian-trip-wasnt-to-change-status-quo.html "Pelosi praises Taiwan, says Asian trip wasn’t to change status quo"), which the speaker has yet to confirm. The last time a speaker of the U.S. House of Representatives visited Taiwan was in 1997, and as a co-equal branch of government, the U.S. executive has little control over congressional travel. [China has grown more powerful militarily and economically since](https://www.financedigest.com/worst-flooding-since-1998-leaves-33bn-economic-toll-in-china-according-to-aon-catastrophe-report.html "Worst flooding since 1998 leaves bn economic toll in China, according to Aon catastrophe report"), and some analysts worry such a visit at a time of fraught ties, could spur a crisis across the 100-mile (160-km) wide Taiwan Strait waterway separating China and Taiwan. “The relationship is in such a toxic state. Mutual distrust is really at an all-time high. I [think people](https://www.financedigest.com/55-of-people-who-regularly-play-sport-dont-think-being-verbally-abusive-to-another-player-makes-them-a-bad-sport.html "55% OF PEOPLE WHO REGULARLY PLAY SPORT DON’T THINK BEING VERBALLY ABUSIVE TO ANOTHER PLAYER MAKES THEM A BAD SPORT") don’t realize how dangerous this particular moment is,” said Bonnie Glaser, a China expert at the German Marshall Fund of the United States. She said Biden and Xi [needed to focus their call](https://www.financedigest.com/europe-power-firms-need-1-5-trillion-euros-in-margin-calls-equinor-says.html "Europe power firms need 1.5 trillion euros in margin calls, Equinor says") on de-escalation, including possible mechanisms to reduce the risk of mishaps. Kirby said the administration has been in touch with Pelosi’s [office to make sure she has “all the context” she needs](https://www.financedigest.com/gdpr-and-the-need-for-a-data-protection-officer-whats-your-obligation.html "GDPR and the Need for a Data Protection Officer – What’s Your Obligation?") to make decisions about her travel. [China has given few clues](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") to specific responses it might take if Pelosi, a long time critic of China, particularly on human rights issues, does go to Taiwan. Martin Chorzempa, a senior research fellow at the Peterson Institute for International Economics, said playing up the Taiwan issue could serve Xi as a [domestic distraction from China’s slowing economy](https://www.financedigest.com/turkeys-economy-grew-7-6-in-q2-driven-by-domestic-demand-exports.html "Turkey’s economy grew 7.6% in Q2 driven by domestic demand, exports"), but “any reaction strong enough to trigger U.S. sanctions would create massive damage to China and the [world economy.”](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World") China’s state media said on Thursday the country will try hard to achieve the best possible results for the economy this year, dropping previous [calls that it will strive to meet its 2022 growth](https://www.financedigest.com/uk-businesses-call-for-looser-immigration-rules-to-boost-growth.html "UK businesses call for looser immigration rules to boost growth") target. This followed a high-level Communist Party meeting chaired by Xi. Scott Kennedy of Washington’s Center for Strategic and International Studies, said he did not believe the two sides were on the edge of a crisis, but “the [risk of a major crisis is well](https://www.financedigest.com/fed-keen-to-be-well-positioned-to-act-on-inflation-other-risks-minutes-show.html "Fed keen to be ‘well positioned’ to act on inflation, other risks, minutes show") above zero” and a Biden-Xi call was important to avoid an unwanted clash. Beijing, Taipei and Washington are full of people steeped in how to send and interpret signals conveying threats and reassurance, and I’m [sure no one wants a war](https://www.financedigest.com/broadband-wars-make-sure-youre-not-caught-in-the-slow-lane.html "Broadband wars – make sure you’re not caught in the slow lane  ") right now. (Reporting by Michael Martina, Trevor Hunnicutt, David Brunnstrom and Jarret Renshaw; additional reporting by Martin Quin Pollard in Beijing. Editing by Raju Gopalakrishnan, Philippa Fletcher and Bernadette Bau) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---