On April 2, President Joe Biden and Chinese leader Xi Jinping suddenly held a 105-minute phone conversation where both sides elaborated on their respective positions on longstanding issues such as Taiwan, the South China Sea, North Korea, trade, etc. Analysts have noticed subtle bargaining in each side’s official statements.
Xi displayed a noticeably softer tone than before as he emphasized trust and stability in bilateral relations. Chinese independent TV producer Li Jun said on NTD’s Chinese-languaged program “Pinnacle View” that previously, the Chinese Communist Party’s (CCP) attitude was more confrontational. However, now Xi is leaning towards reconciliation and improving relations with the United States, aiming to avoid conflicts.
US-China Geopolitical Struggles
Henry Wu, a Taiwanese macroeconomics scholar and chief economist at AIA Capital, said on “Pinnacle View” that high-level meetings between the United States and China usually involve a detailed preliminary procedure, including video calls and conferences. However, this call between Xi and President Biden was sudden and rushed, without any prior contact. He believes that Xi likely requested the call.Mr. Wu pointed out that Taiwan is indeed a focus of the conversation since Taiwan’s newly elected President, Lai Ching-te, will be inaugurated on May 20, and the United States wanted China not to cause trouble at this time. Nevertheless, the Chinese Communist Party (CCP) views Taiwan as a part of China that needs to be reclaimed, and the political symbol of the Republic of China needs to be eliminated. In other words, the existence of Taiwan, or its official name, the Republic of China, challenges the CCP’s legitimacy, and its freedom and democracy exist in stark contrast with the CCP.
According to Mr. Wu, another focus was the Philippines. The CCP faces significant domestic crises and needs to shift focus. Military conflicts abroad may be viewed as necessary by the CCP. Currently, China is ramping up its provocations at the disputed Second Thomas Shoal in the South China Sea, stirring up conflicts with the Philippines. The United States emphasized the South China Sea issue precisely for this reason.
Upgraded Sanctions Against China
Guo Jun, editor-in-chief of The Epoch Times’ Hong Kong edition, said on the “Pinnacle View” that in this call, the most concerning topic for the CCP is AI chips and the restrictions the United States imposes on China’s tech. In its briefing, the CCP claimed that the United States has been constantly suppressing China’s economic and technological development, and the list of sanctions against Chinese companies is getting longer. The CCP said it will not sit by idly as the United States attempts to deprive China of its right to development.Ms. Guo said that a few days before the call between the two leaders on March 29, the United States revised its policy aimed at preventing China from acquiring U.S.-made AI chips and semiconductor manufacturing tools. This includes completely banning the sale of the most advanced AI chips designed by companies like Nvidia to China, as well as any equipment for manufacturing these chips.
“Recently, there was also news that at the world’s most influential AI conference, the Nvidia GTC, held in Silicon Valley with over 900 summit sessions and over 200 participating companies, a big shot from China’s private equity sector also attended the conference,” she said. “He stated that his deepest impression of the conference was that nobody discussed China. China has been a hot topic and focus in recent years, but the country was completely ignored at this event. Whether it’s the development of AI in China or investment, hardly anyone cares about China. He believes that this change points towards the trend that the United States will completely isolate China in AI development.”
Ms. Guo pointed out that although China is now a major power in AI development, China has a flaw, which is that it cannot produce advanced AI chips. If China is excluded from AI development, five years from now, many industries in China will be in trouble, and this is the most important issue for the CCP.
“So, during this call between Xi Jinping and Mr. Biden, Xi Jinping’s strongest point is that he will not sit idly by,” she said. “So I believe the chip issue is the most worrying thing for China.”
