ANALYST NOTES – Biden Holds Likely Final Meeting with Chinese President Xi Jinping in Peru

President Biden met with Chinese President Xi Jinping on Saturday, November 16, during the Asia-Pacific Economic Cooperation (APEC) forum in Lima, Peru, marking their first interaction since April. The leaders addressed heightened U.S.-China tensions over Taiwan, the South China Sea, and recent reports of a Chinese-linked cyber espionage campaign targeting U.S. officials. Other reported topics included concerns about China’s support for Russia in the Ukraine war, the presence of North Korean soldiers in Russia, and requests for Chinese cooperation to curb the flow of fentanyl precursors to the U.S. Despite increasing competition and conflicting national interests, the meeting aimed to maintain open communication to prevent conflict and manage their complex bilateral relationship during a pivotal geopolitical moment.

Analysis: As previously mentioned, a key issue between Biden and Xi was the recent China-linked cyberattack targeting U.S. government officials. The cyberattack, detailed by the FBI and the Cybersecurity and Infrastructure Security Agency (CISA), reportedly involved PRC-affiliated hackers breaching networks of multiple U.S. telecommunications companies. They intercepted surveillance data meant for U.S. law enforcement, accessed customer call records, and compromised private communications of multiple political officials. Trump and several allies were among the reported victims of the telecommunications hack.

The cyber-attack, described as significant and broad, highlights China's targeted espionage efforts against U.S. infrastructure. Hackers not only stole sensitive communications but also duplicated information subject to U.S. law enforcement requests. The investigation is ongoing with the FBI, CISA, and other government agencies expecting to uncover further details about these activities. 

The revelations underscore escalating cybersecurity tensions between the U.S. and China, adding urgency to Biden’s final interactions with Xi. These developments reflect the broader challenges in the bilateral relationship, as both nations grapple with issues spanning security, territorial disputes, and global power dynamics. The meeting aimed to address these complexities while seeking ways to manage competition and prevent further escalation ahead of the U.S. presidential transition. President-elect Trump, for his part, has vowed a tougher stance on China, including to adopt blanket 60% tariffs on U.S. imports of Chinese goods. 

Xi’s tour of South America also includes inaugurating the Chancay megaport, conducting a state visit to Brazil, and attending the Group of 20 summit in Rio de Janeiro. Chancay is a massive $1.3 billion project underwritten by the Chinese shipping giant Cosco. It is one of the latest pieces of Xi’s signature Belt and Road initiative and a key part of the president’s efforts to expand Chinese trade and influence in South America.