Xi Jinping says China ready to work with Trump 2.0, but warns on crossing ‘red lines’

Chinese President Xi Jinping said Beijing is ready to work with the new U.S. administration to maintain communication and manage differences, but warned that Washington should not challenge China’s “four red lines.”

“The Taiwan question, democracy and human rights, China’s path and system, and China’s development right are the four red lines,” he said when he met Joe Biden on the sidelines of the APEC summit. “They must not be challenged. These are the most important guardrails and safety nets for China-U.S. relations.”

Xi also criticized the Biden administration’s “small yard, high fence” strategy of restricting China’s access to advanced technologies. “Containing China is unwise, unacceptable and bound to fail.”

Xi’s statements come amid uncertainty over the future of China-U.S. ties amid Donald Trump’s tariff threats and cabinet picks that include outspoken China critics. Notably, Trump said Taiwan should pay the U.S. for defense from China.

At the APEC CEO Summit, JPMorgan (JPM) CEO Jamie Dimon said Trump’s tariff threats will bring people to the negotiating table.

But Josh Lipsky, senior director of the GeoEconomics Center at think tank Atlantic Council, doesn’t see tariffs as a negotiation tactic. “Trump means what he says when it comes to tariffs.”

Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.