Over the last decade, the rivalry and tensions between China and the U.S. have intensified. The tough on China policy started with former President Barack Obama's pivot towards Asia. It escalated under former President Donald Trump who launched a trade war and has continued under President Joe Biden who has left the bulk of Trump's tariffs in place.

During his administration, President Joe Biden has put more pressure on China by banning certain types of chips from being sold to China and passing legislation to increase chip production in the U.S. China has also turned more inward as President Xi has been more focused on promoting 'cultural values' over economic growth. This has led to punishments and crackdowns on corporate behavior and COVID policies that prioritize limiting outbreaks over promoting economic activity.

He has also taken a much more aggressive stance towards Taiwan which continues to be a major difference of opinion between the two powers. China sees Taiwan as a part of China that will inevitably reunite like Hong Kong. The U.S. sees Taiwan as a democracy and has pledged to protect it in the event of an attack.

But, there were positive indications following the G20 summit where Presidents Biden and Xi spoke privately for 3 hours. Both agreed that Russia should not use nuclear weapons in Ukraine and announced a resumption of climate talks between the 2 countries.

Some of the other issues that were addressed by the leaders included North Korea's missile tests and nuclear activity, a need for more regular conversations which had been suspended since House Speaker Nancy Pelosi's visit to Taiwan, and a need to avoid an accidental conflict given that both countries' navies are active in the Pacific. Both Xi and Biden have had a relationship that has spanned decades given Xi's time at the CCP and Biden's as VP and the Senate Foreign Relations Committee.

Many see the meeting as the re-start of a diplomatic relationship which is healthier than a battle through proxies. It's also clear that China has no intention to invade Taiwan imminently although Biden did address China's recent aggressive posture towards Taiwan.

Another positive development from the meeting was Xi's alignment with Biden on the importance of finding a peaceful resolution to the war in Ukraine and that the conflict shouldn't escalate further. Many have tried to frame it as a proxy war between the U.S. and China given Russia's reliance on China, however, this doesn't seem to fit with China's recent criticism of Russia.