The leaders of the US and China discussed the issue of Taiwan during their recent summit, with President Biden reiterating the US's commitment to a One China policy and Taiwan's sovereignty. Xi Jinping called for the US to stop supporting Taiwan's independence and back China's reunification. The Taiwan issue has been a flashpoint in the bilateral relationship between the two countries, and China has threatened to use force to reclaim the island if necessary. The summit also resulted in agreements on artificial intelligence, combating fentanyl, and military communications. The impact on financial markets and investment in China remains uncertain.
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