WOODSIDE, California, November 15 (Reuters) - In a landmark development, U.S. President Joe Biden and Chinese leader Xi Jinping have agreed to establish a presidential hotline, restart military-to-military communications, and collaborate to curb fentanyl production.

This marks tangible progress in their first face-to-face talks in a year, held for approximately four hours on the outskirts of San Francisco. The discussions addressed various issues that have strained U.S.-Chinese relations, with an ongoing divergence on the matter of Taiwan.

A significant breakthrough involves the planned resumption of military contacts, severed by China after then-House of Representatives Speaker Nancy Pelosi visited Taiwan in August 2022. President Biden emphasized the return to direct and open communication, describing it as a clear and direct basis.

Furthermore, both leaders agreed to high-level communications, allowing them to directly call each other. However, President Biden, in a statement likely to provoke China, maintained his view that Xi is a dictator, citing China's communist governance.

During the talks, Biden raised concerns about detained U.S. citizens, human rights issues in Xinjiang, Tibet, and Hong Kong, as well as Beijing's assertive actions in the South China Sea. The discussions aimed at fostering open communication to avoid misunderstandings.

In the realm of military relations, the U.S. and China plan to address near-misses and contentious exchanges from the past year. U.S. Secretary of Defense Lloyd Austin will meet his Chinese counterpart following the commitment to renew communications.

Both leaders agreed that China would curb the export of items related to the production of fentanyl, a leading cause of drug overdoses in the United States. The agreement includes targeting specific chemical companies producing fentanyl precursors, with President Biden expressing appreciation for China's commitment.

The leaders also agreed to convene experts to discuss the risks associated with artificial intelligence. On the Taiwan issue, President Biden stressed the need for peace and stability in the Taiwan Strait, advocating for the status quo and respect for Taiwan's electoral process. Xi, in turn, emphasized China's preference for peaceful reunification but discussed conditions where force might be employed. Additionally, Xi urged the U.S. to halt weapons shipments to Taiwan and support China's peaceful "reunification" with Taiwan.