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There is news that the US President Joe Biden and Chinese President Xi Jinping are preparing to speak today for the first time.

Markets will be watching the headlines like a hawk for details over Beijing’s tightening grip on Hong Kong, trade and currency as well as the South China Sea.

A White House spokesperson didn’t immediately respond to a request for comment.

In a visit to the Pentagon on Wednesday, Biden said he had directed Defense Secretary Lloyd Austin to establish a task force to review U.S. national security policy with respect to China.

There is also a focus on technology due to the rivalry which Trump set between the two nations in advanced technologies, including 5G, artificial intelligence, big data and fintech. 

US President Joe Biden has already warned of “extreme competition” with China, but he has made clear that he would not pursue the same path his predecessor Donald Trump took.

In an interview with CBS News, the US president offered clues as to how he would approach relations with China, suggesting that he might try to avoid a conflict and follow international rules. 

However, Chinese industry insiders and analysts have urged businesses to abandon any “illusions” that things would improve meaningfully under Biden.

The stage could be set following the call as for how the relationship between the two nations is going to look for the coming few years, so equities and the safe havens, including the US dollar, swiss franc and the yen will be a focus.