Xi tells Biden that US, China share interests, warns against Taiwan 'red line'

Chinese president Xi Jinping told his US counterpart Joe Biden Monday that the world was big enough for their two countries to prosper and compete, while warning Washington against crossing Beijing's "red line" on Taiwan.

"Under the current circumstances, China and the United States share more, not less, common interests," Xi told Biden during three hours of talks in Bali, Indonesia, Beijing's foreign ministry said in a statement.

Beijing does not seek to challenge the US or "change the existing international order", Xi reportedly added, calling for the two sides to "respect each other".

But Xi warned Biden not to cross Beijing's "red line" over the self-ruled island of Taiwan, which the Chinese government claims as its territory.

"The Taiwan question is at the very core of China's core interests, the bedrock of the political foundation of China-US relations, and the first red line that must not be crossed in China-US relations," Xi told Biden, according to the foreign ministry, adding "resolving the Taiwan question is a matter for the Chinese".

The two leaders were also reported to have discussed the situation in Ukraine, with Xi telling Biden Beijing was "deeply concerned" about the conflict.

"China has all along stood on the side of peace and will continue to encourage peace talks," the Chinese leader was reported to have said.

"We support and look forward to a resumption of peace talks between Russia and Ukraine."