Xi Jinping Eyes Support From US Allies As Tensions With Biden Administration Grow Amid Chip Dispute

Amid boiling tensions with the President Joe Biden's administration over the Chip dispute, Chinese President Xi Jinping is shoring up the support of U.S. allies. 

What Happened: Xi said China is ready to advance relations with Australia based on mutual respect, win-win principles as Australian Foreign Minister Penny Wong on Tuesday met her counterpart, Wang Yi, in Beijing, the Chinese state media reported.

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“I attach great importance to the development of China-Australia relations and am willing to work with the Australian side,” Xi said in a report from Xinhua.

This comes a day after the Chinese leader, targeting the U.S., urged Germany to work together to foster good relations between his country and the European Union without any interference by a "third party."

President Xi told his German counterpart Frank-Walter Steinmeier in a phone call on Tuesday that “China supports the strategic autonomy of the E.U. and hopes that the European side will adhere to the basic positioning of China and Europe as strategic partners…, and to the principle that China-EU relations are not targeted, not dependent, and not subject to a third party,” reported the state media. 

The developments come as the tension between Xi's Communist Party and the Biden administration boils amid U.S. sweeping control on chip exports. Washington also added more than three dozen Chinese companies to its trade blacklist, including top chipmaker Yangtze Memory Technologies. 

In response, China launched a trade dispute at the World Trade Organization against the U.S., which, it claims, has “threatened the stability of the global industrial supply chains.” It is also mulling a one trillion yuan ($143 billion) support package for its semiconductor industry and could introduce it as soon as the first quarter of next year.

Last week, China was also seen lobbying U.S. ally South Korea to end Washington’s “​​unilateral bullying.” Chinese foreign minister urged his South Korean counterpart Park Jin to oppose U.S. legislation aimed at controlling the export during a meeting.

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