Special issue on the Biden-Xi meeting at the APEC summit

For a global order beset by conflicts and crises, last week’s meeting of Presidents Joe Biden and Xi Jinping in San Francisco showed that the US and China can still work together constructively. They agreed to resume military-to-military contacts, tackle Chinese exports of fentanyl and signed a climate-change declaration. But, as Abiga?l VASSELIER , Director Policy and European Affairs and Head of Program Foreign Relations at MERICS, writes in the top story of this MERICS China Essentials: “While this was a domestic win-win for Biden and Xi, this summit certainly did not tackle the structural bilateral issues fueling geopolitical and technological competition.” Read more

This MERICS China Essentials also looks at important signals emanating from the APEC Summit in California about the Chinese economy and science and technology co-operation. Xi used the occasion to present an upbeat picture of opportunities in China and convince foreign investors to again commit more money to China. But, as Jacob Gunter , Lead Analyst MERICS, notes: “It isn’t Beijing’s tone that is determining foreign direct investment flows, but rather geopolitical uncertainties and most importantly China’s domestic policy agenda and macro trends.” Read more

Xi and Biden also agreed to start talks about extending the soon-to-end China-US Science and Technology Cooperation Agreement (STA). Jeroen Groenewegen-Lau , Head of the Science, Technology and Innovation Policy Team at MERICS says a revived STA will likely not result in a deepening of exchanges. “Any major step would run counter to China’s pursuit of technological self-reliance. Joint research will be limited to fundamental science and platforms to discuss joint responses to pandemics, AI and other global challenges.” Read more

Lastly, this issue looks at the growing dissatisfaction of homebuyers and construction workers left out of pocket by the debt-crisis in China’s real-estate industry. Signs are mounting that Beijing is preparing to help them with public funds to support house building. As MERICS Analyst 安复礼 notes: This “could indeed ‘improve people’s livelihoods’, as the government says. But it may take several years for the policy to move from proposal to implementation. Read more

Continue reading this issue of MERICS China Essentials on our website .