Biden Says China Won’t Invade Taiwan; this is why

The White House confirmed that the leaders’ conversation was non-confrontational and focused on stability and issues in the Southern Hemisphere.

Although the meeting took place amid fraught relations, which were further strained by an incident involving a suspected Chinese spy balloon over US soil, it provided an opportunity for both countries to discuss critical matters.

Biden highlighted China’s economic problems, pointing to a sluggish real estate sector and high youth unemployment. These factors, according to Biden, hinder China’s ability to conduct a military operation against Taiwan, a self-governing island that Beijing claims as its own.

Calling the economic situation in China a “crisis,” Biden cited problems in the real estate sector and high youth unemployment.

“One of the key economic tenets of his plan isn’t working at all right now,” Reuters quoted Biden as saying of Xi, without elaborating. “I’m not happy about that, but it doesn’t work.”

“I don’t think this will lead to China invading Taiwan. In fact, the opposite probably won’t have the same capacity as before,” he added.

Meanwhile, Premier Li remains hopeful that China will achieve its projected 5% growth rate in 2023, although some financial analysts are skeptical due to the country’s ongoing real estate crisis and declining consumer spending.

As Biden gears up for the 2024 reelection campaign, economic issues are taking center stage, especially inflation. The US posted modest annual growth of 2.1% last quarter, drawing criticism as central banks have significantly raised interest rates to keep inflation in check.

(With Reuters inputs)

Updated: Sep 11, 2023 06:50 IST