Jinping for the first time in a year.

The two# leaders are announcing agreements on military## communication and a crackdown on the Chinese# chemicals used to make the lethal drug fentanyl.

But, as Nick Schifrin reports from# the summit site, the goal was less## about breakthroughs and more about# stabilizing a troubled relationship.

QUESTION: President Biden.

NICK SCHIFRIN: Today in a handshak JOE BIDEN, President o NICK SCHIFRIN: ... a most advanced militaries and# most consequential competition## said they wanted their relationship to be stable.

JOE BIDEN: It is paramount that you# and I understand each leader to leader, with no misconceptions or## miscommunication.

We have to ensure that# competition does not veer into co XI JINPING, Chinese President (through# translator): I'm still of the view that## major country competition is not the# pr cannot solve the problems facing China and# the United States or the world at large.

NICK SCHIFRIN: The two sides are agreeing# to what a senior U.S. official called a## comprehensive set of military communication,# Secretary Chinese counterpart, a job currently empty,# the top U.S. Indo-Pacific military commander## with his counterpart, and working-level# groups to discuss operational safety.

The idea is to ensure communication, even in# crisis.

The U.S. believes close calls between## Chinese and American ships, what the U.S.# calls 180 unsafe encounters between Chinese## and American jets just in the last# two years, and the actual collisions## of Chinese ships with Filipino boats in# the South China Sea could cause a crisis.

MAN: It is not the moon.

NICK SCHIFRIN: The lack of co U.S. official said, when the Chinese# spy balloon crossed the U.S. earlier# this year -- quote -- "We had no way to# really communicate with the Chin EVAN MEDEIROS, Former National Security# Council Official: The way I think about## the but not sufficient condition for# managing strategic competition NICK SCHIFRIN: Evan Medeiros was President Obama's# top National Security Council official f He calls better communications important, but# warns, China views them differently than the U.S. EVAN MEDEIROS: They're skeptical of it,## which is one of in particular, the crisis management part# of the military-to-military channels are## just a way for the Americans to create the# conditions for them to push China even more.

NICK SCHIFRIN: Biden and Xi are# also announcing steps to try and## limit the proliferation of fentanyl, a# hundred times more and linked to hundreds of# thousands of American deaths.

Fentanyl is made from chemicals in China# exported to Latin American ca convert them to drugs.

A senior U.S. official# says Beijing is making -- quote -- "deeply## consequential decisions," although Beijing# has made previous promises on fentanyl.

In exchange, the U.S. is reportedly lifting# sanctions on an arm of China's Ministry of## Public Security.

But U.S.-China divisions# remain, most notably over Taiwan.

Taipei## confirmed for the first time this week the U.S.# was helping Taiwan train to defend the island.## Beijing considers Taipei a breakaway province# and has increased its military intimidation.

Today, President Biden is warning# China not to interfere with Taiwan's## January presidential election.

Beijing# labels the front-runner, William La a separatist.

But senior U.S. officials# hope Beijing's aggression toward Taiwan## could be -- quote -- "inhibited" by internal# problems.

Rare protests in 2021 at the offices## of the real estate developer Evergrande revealed# deep dissatisfaction with the Chinese economy.

Today, more foreign direct investment is# flowing out of the country than coming## in.

It's a sign international investors are# concerned by Beijing's economic ta rgeting of Western firms and their employees# and rising labor costs, says lawyer John Ramig,## who specializes in international business.

JOHN RAMIG, Attorney: A few years ago,# everyo you had to have a presence in China.

Today,# I haven't had anyone come to me, honestly,## for three years asking to, could you# help me make an investment into China?

NICK SCHIFRIN: U.S. officials believe that# trend has helped lead to a Chinese charm## offensive ahead of the summit, including a recent# English-language article featuring Xi Jinping's decade-old interest# in -- quote -- "friendship with America."

Xi is expected to take that message to American## CEOs tonight.

He will tell them# China is still U.S. officials here at the summit site are# eager for more communication and contacts,## but they say they're not returning to# diplomacy of the past.

The overriding## context of the relationship,# they say, today is competition.

The administration's critics today said# that this kind of engagement reinforces## than -- rather than resolves# China's coercive behavior.

AMNA NAWAZ: Nick, so what about this announcement## you have reported on about mili NICK SCHIFRIN: Well, as we reported, Amna,# the U.S. is thinking that this is particularly## important in times of crisis, but it's unclear# that it will affect what you also jus those Chinese jets, those Chinese ships# coming so close to U.S. military assets.

The bottom line is, analysts believe# Beijing harasses U.S. military assets## because it doesn't want them operating so# close to Chinese territory, even though the## U.S. says they're in international waters.

And# the fact is, communication won't change that.

AMNA NAWAZ: And what do we know about# any conversation between the two leaders## on the ongoing conflicts catching the world's# attention, specifica NICK SCHIFRIN: U.S. officials and President# Biden today is reinforcing this message,## hope that China can be helpful when it# comes to the Middle East by talking to its partner Iran and encouraging# it not to expand the conflict.

On Ukraine, U.S. officials believe China# is pretty much all in politically when## it comes to supporting Russia diplomatically, of# course, and militarily reinforcing its military,## but stopping just short of sending# weapons to Russia for its war on Ukraine.

And, again, Amna, nothing today# is going to change that either.

AMNA NAWAZ: And, Nick, you also reported that,# particularly on between the two nations.

Is there anything# being discussed that could bridge that gap?

NICK SCHIFRIN: Yes, in a word today, no.

I mean, Chinese officials tell me not only the navigation patrols that the# U.S. has between Taiwan and the mainland,## but also the president's previous# comments about supporting Taiwan## and boosting military help to# Taiwan, that is destabilizing.

The U.S. is just going to repeat, according to# U.S. officials, what it has said in the past,## that it believes in the One China policy,# believes in the assurances that it has given## Beijing in the past.

And they are hoping that that# previous language they have said is stabilizing.

But, frankly, Amna, it is unlikely to reassure# Beijing.

And so, yet again, we are talking about## something where divisions are not going# to be papered over at this summit at all.

AMNA NAWAZ: Finally, Nick, we know that Xi# Jinping's arrival was met with a number of## protests in and around San Francisco.

Do we# know if the Chinese leader saw any of t NICK SCHIFRIN: It's a good question, Amna.

I don't know if he according to U.S. officials, before the arrival# to make sure that they asked U.S. officials## exactly what Xi Jinping would see looking out# of his windows going to each of these events.

And, as an aside, our bus actually had to# go around protests outside this summit site,## which is completely locked# down.

There is, of course,## inordinate focus in the Chinese system on the# leader, on X consolidated control.

U.S. officials believe# that he really is making his own judgment.

And that makes this kind of# high-level diplomacy today,## this kind of summit all the more important# and all the more reminiscent of early Cold War diplomacy between the# United States and the Soviet Union, Amna.

AMNA NAWAZ: That's Nick Schifrin reporting# for us tonight from San Francisco.

Nick, thank you.

Good to see you.

NICK SCHIFRIN: Thanks.