US President Joe Biden says Cold War with China can be avoided after Xi Jinping talks

US President Joe Biden has denied China is planning an “imminent” invasion of Taiwan despite rising fears a new Cold War is brewing.

US President Joe Biden has pledged that a new Cold War can be avoided and that a Taiwan invasion is not “imminent” after historic talks with his Chinese counterpart Xi Jinping in Bali.

Despite a chilling warning from China to the US President – and Australia – that “the world has come to a crossroads” and that Taiwan is the “first red line” that “must not be crossed”, the US president was optimistic after the meeting.

The two world leaders greeted each other on the sidelines of the Bali summit, with President Biden telling President Xi that “it’s just great to see you” before holding marathon talks that lasted three hours.

President Xi’s last in-person meeting with a US president was with Donald Trump in June 2019 in Japan.

During today’s “open and candid” talks, the first since Mr Biden took office, the US president warned China that the stance toward Taiwan threatened stability in the region.

Mr Xi replied that Taiwan’s independence was a “fire and water” proposition to peace in the region, according a Chinese readout of the meeting.

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US President Joe Biden and China's President Xi Jinping shake hands as they meet on the sidelines of the G20 Summit in Bali. Picture: Saul Loeb/AFP

“We hope and have always striven for maintaining peace and stability in the Taiwan Strait, but ‘Taiwan independence’ is as incompatible to peace and stability in the Taiwan Strait as fire and water,” he said, according to the Chinese readout of the talks.

The US president said: “I made it clear we want to see cross-strait issues to be peacefully resolved and so it never has to come to that. And I’m convinced that he understood what I was saying, I understood what he was saying.”

“I absolutely believe there need not be a new Cold War. I have met many times with Xi Jinping and we were candid and clear with one another across the board,” he said.

“I do not think there is any imminent attempt on the part of China to invade Taiwan.”

As Australian Prime Minister Anthony Albanese prepared to hold the first formal talks with the Chinese leader in six years, Mr Biden spoke to reporters in Bali after the three-hour talks.

“I’m not suggesting this is kumbaya,” Mr Biden said.

The talks have been seen by some as proof relations between China and the US are thawing. Pictures: Mandel Ngan and Noel Celis/AFP

“But I do not believe there’s a need for concern, as one of you raised a legitimate question, a new Cold War.

“We’re going to compete vigorously but I’m not looking for conflict.”

The US president also announced his Secretary of State Antony Blinken would visit China in a sign of thawing relations between the two leaders.

The White House said in a statement that the two leaders had agreed that nuclear weapons cannot be used in Ukraine.

“President Biden and President Xi reiterated their agreement that a nuclear war should never be fought and can never be won,” a White House readout said.

Speaking in Bali, Prime Minister Anthony Albanese said he was looking forward to his own talks with President Xi and said: “We’ll act and have dialogue in our national interest.”

There are hopes of an easing of Chinese sanctions, but Mr Albanese said there were no preconditions of the talks.

Australia's Prime Minister Anthony Albanese is looking forward to his own talks with Xi. Picture: Firdia Lisnawati/Pool/AFP

“I’m ­looking forward to having constructive dialogue. I’ve said since I became the Prime Minister, but before then as well, that dialogue is always a good thing. We need to talk in order to develop mutual understanding,” he said.

“Having the meeting is a successful outcome.

“For six years we have not had any dialogue, and it is not in Australia’s interest to not have dialogue with our major trading partner.”

However, Anthony Albanese has ruled out joining a walkout in Bali while Russian Foreign Minister Sergei Lavrov addresses the G20 in a show of respect for the Indonesian hosts.

“I’m here to give support to President Widodo and I look forward to a successful summit,” Mr Albanese said.

Originally published as US President Joe Biden says Cold War with China can be avoided after Xi Jinping talks