Wooing business leaders and avoiding conflict: What’s on Xi’s agenda as the Chinese leader heads to California

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Hong Kong (CNN) — Xi Jinping arrived in San Fransisco on Tuesday for a highly anticipated summit with US President Joe Biden — where the Chinese leader will likely try to bolster his country’s troubled economy and push back on perceived US efforts to suppress it.

That Xi is on his first trip to the US in six years — a four-day visit that includes his attendance at the Asia Pacific Economic Cooperation international forum — is remarkable in itself.

The leaders of the world’s top two economies have not spoken since they last met on the sidelines of another international gathering in Bali, Indonesia in November 2022.

To arrange this meeting, their governments have had to navigate a number of contentious issues: from the handling of an allegedly rogue Chinese surveillance balloon to Beijing’s targeting of international businesses, and tit-for-tat restrictions over high tech.

Expectations for major breakthroughs at Wednesday’s meeting are low.

Xi is heading into the summit as he struggles to revive a faltering Chinese economy yet to fully rebound after his strict pandemic controls were relaxed, with the property market in crisis and record youth unemployment.

The economic woes, combined with the unexplained removal of two hand-picked officials at the top of his government, have tarnished the image that Xi projected the last time he met Biden, when he’d just consolidated power and started a norm-shattering third term leading China.

Biden, meanwhile, finds himself strapped with international challenges from the war in Ukraine to the latest conflict in Gaza. Another global flashpoint involving China is the last thing he would want to see, especially as he vies for re-election next year.

“At a time that they both face domestic challenges and foreign policy challenges, there’s less incentive for them to try to go after each other and a bit more incentive for them to stabilize their relationship,” said Yun Sun, director of the China Program at the Stimson Center think tank in Washington.

Chinese leader Xi Jinping, left, and US President Joe Biden. - Getty Images
Chinese leader Xi Jinping, left, and US President Joe Biden. - Getty Images

Xi’s agenda

Despite the challenges he faces at home, the insulated Chinese leader may see himself in a stronger position relative to Biden. Beijing views the US as plagued by deep political polarization and on the decline globally.

“Xi thinks the US wanted to improve the relationship with China and he responded. They sent those delegations to him … (after he) put pressure on the US government,” said Suisheng Zhao, director of the Center for China-US Cooperation at the University of Denver, referring to visits from American officials to Beijing over recent months.