In Lima, Peru, US President Joe Biden and Chinese President Xi Jinping are set to meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum, marking their first discussions in seven months.

The meeting comes as tensions escalate between the two nations over recent cybercrime incidents linked to China, trade disagreements, and geopolitical issues surrounding Taiwan and Russia.

The discussions aim to address challenges such as recent China-linked cyber hacks affecting US government communications, Beijing's increasing pressure on Taiwan, and support for Russia.

Taiwanese President Lai Ching-te's planned US visit is likely to further strain relations, as China sees Taiwan as its territory.

The US, while lacking formal diplomatic ties, remains Taiwan's key international supporter.

Economic issues will also be prominent, as China's economy faces hurdles from Biden's trade policies, including planned US investment restrictions in Chinese technology sectors.

Xi's visit to Lima is part of a broader Latin American diplomatic tour, including a state visit to Brazil and a renewed free-trade agreement with Peru.

Concern lingers in the US over China's influence in the region, which includes potential military and intelligence expansions.

Future US policy towards China under President-elect Donald Trump adds uncertainty, with expected tariff increases on Chinese goods and hawkish appointments such as Marco Rubio and Mike Waltz.

As transition looms, both nations seek stability in their bilateral relations.

The APEC summit in Lima offers a platform for these critical discussions amidst shifting global power dynamics.