Biden to talk trade and Taiwan with Xi: sources

STORY: In a bid to manage fraying relations with China, a long-discussed call between U.S. President Joe Biden and leader Xi Jinping is expected to take place this week.

That's according to sources familiar with the matter on Tuesday who said the call would take place Thursday.

But a long list of disagreements weigh heavy on ties between the world's two largest economies, from trade to Taiwan.

Washington is seeking to ease U.S. dependence on Chinese-made chips, with a new bill providing more than $50 billion in subsidies as well as tax credits to chips manufacturers, in order to ease a shortage that's disrupted multiple industries.

That's as China ramps up its own efforts to produce home-grown chips.

Biden on Monday urged for the bill's passage and met virtually with the chief executives of Lockheed Martin, Medtronic and Cummins.

"We watched China go from 2 percent to 16 percent, and China’s goals as they recently stated is 25 percent. They need to produce 25 percent to become fully self-sufficient. It is no wonder China is watching this bill so closely and actively lobbying U.S. businesses against the bill.”

The impending call also comes as Beijing delivers heightened warnings to House Speaker Nancy Pelosi over a possible visit to Taiwan .

A trip by Pelosi would be the first by a House Speaker since 1997.

But China claims the democratically-ruled island as its own territory.

And, it said it is prepared to take strong measures in response should Pelosi visit.

Washington adheres to a one-China policy, and so does not have official diplomatic relations with Taiwan.

However, it is bound by U.S. law to provide the island with the means to defend itself.

The White House has been quick to reiterate that stance has not changed.

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