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The Story: Yesterday, President Biden and Xi Jinping had a four-hour meeting at the APEC summit in San Francisco. Their conversation was positive, consisting of the two agreeing to re-ignite military-to-military communications between the US and China, and also on efforts to crack down on the production of fentanyl.

This is the first meeting between the two world leaders in a year, and it looks as if it may have been successful in easing some tensions between the two nations. President Biden called his time with the Chinese leader “some of the most constructive and productive discussions we've had.”

Biden emphasized opening up communication channels between high-level military officials because without them is “how accidents happen.”

Xi appears to agree that a united US and China is a positive relationship. Xi says he is “still of the view that major country competition is not the prevailing trend of current times and cannot solve the problems facing China and the United States or the world at large.” He continues, “Planet Earth is big enough for the two countries to succeed. And one country's success is an opportunity for the other.”

Xi encouraged the US to abide by the following five pillars while rebuilding its relationship with China.

1. Respecting each other,

2. Managing their disagreements,

3. Cooperating in areas such as climate change and artificial intelligence,

4. “Jointly shouldering responsibilities as major countries,”

5. Strengthening people-to-people ties.

Xi also wants Biden to stop supporting Taiwan’s independence and providing the country with weapons, although the US has been consistently clear in its support for the small island nation.

What It Means for Venture: A mended relationship between the US and China would have massive implications for the future of chip exports, the tech war with China, and the AI arms race.

However, it’s hard to believe that these diplomatic discussions were anything more than just words between the leaders of the world’s two most powerful nations.

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