Bali - U.S. President Joe Biden warned Chinese President Xi Jinping about the risks of China's reliance on Western investment, emphasizing the consequences faced by Russia following its intervention in Ukraine. The remarks come amidst heightened tensions and concerns over national security issues, strained U.S.-China relations, and ongoing discussions between the two leaders.
The comments were made in a recent interview with CNN, while he shared details of his conversation with Chinese President Xi Jinping, following his meeting with Russia's Vladimir Putin. The discussion took place against a backdrop of heightened tensions and growing concerns over national security issues, including Taiwan, Russia's involvement in Ukraine, export bans on advanced technologies, and China's state-led industrial policies.
"I said: This is not a threat. This is an observation," Biden said, clarifying that his remarks were meant as an observation rather than a threat.
"Since Russia went into Ukraine, 600 American corporations have pulled out of Russia. And you have told me that your economy depends on investment from Europe and the United States. And be careful. Be careful." Biden said emphasizing the significance of European and American investment for the Chinese economy.
The meeting between Putin and Xi in March showcased a display of amicable relations between China and Russia, accompanied by joint criticisms of Western nations. However, no diplomatic breakthrough regarding the Ukraine conflict was achieved. The leaders also participated in a virtual summit earlier this week, but it did not yield significant progress on the strained relations.
President Biden further revealed that Xi listened to his remarks without engaging in a debate. The U.S. President noted that Xi had refrained from fully supporting Russia, which could indicate potential common ground for cooperation. Biden expressed optimism, stating that there might be a way to work through the current challenges in the U.S.-China relationship.
Meanwhile, U.S. Treasury Secretary Janet Yellen was on an ongoing visit to China, which aimed to address economic matters and strengthen bilateral ties between the two nations.
The remarks made by President Biden underscore the mounting tensions and pessimism surrounding the U.S.-China relationship. Both nations are grappling with various issues that have strained their ties, including geopolitical disputes, technological competition, and divergent ideologies. The cautious dependence of China's economy on Western investment has become a key concern, as the U.S. and its allies consider measures that restrict the flow of advanced technologies to Chinese companies.
Asked what Xi's response was, Biden said: "He listened, and he didn't...argue. And if you notice, he has not gone full-bore in on Russia."
"So, I think there's a way we can work through this."
As the situation unfolds, the international community will closely observe how China and the U.S. navigate their complex relationship and seek avenues for cooperation amidst the existing challenges.