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By Max Matza in San Francisco & Mike Wendling
BBC News
US President Joe Biden and China's President Xi Jinping pledged to ease tensions as the pair met for a high-stakes summit in California.
The talks at a historic estate near San Francisco on Wednesday mark the first time the rival leaders have spoken in person in more than a year.
Trade, climate and military activity are all expected to be discussed.
Relations deteriorated in February when a suspected Chinese spy balloon was shot down over US airspace.
They were also tested by a visit last year to Taiwan by former House Speaker Nancy Pelosi, which led China to stop military-to-military communication with the US.
The superpowers are also at odds over a host of issues including fentanyl production, military activity in the South China Sea, the Israel-Hamas war, Taiwan, the war in Ukraine and alleged election interference.
Mr Biden opened his remarks at the meeting by saying tensions between the nations should be one of "competition" and should "not veer into conflict".
Mr Xi then said "turning their back on each other is not an option".
"Confrontation has unbearable consequences for both sides," he added.
While the meeting on the sidelines of the Asia-Pacific Economic Co-operation (Apec) summit has been highly anticipated, officials on both sides have played down expectations of any major breakthroughs.
"The goals here really are about managing the competition, preventing the downside of risk - of conflict, and ensuring channels of communication are open," a senior US administration official said earlier.
Mr Xi and Mr Biden met at the Filoli Estate, a country house outside San Francisco far from the main Apec meeting.
Mr Biden is expected to request that China use its influence over Iran to try to prevent an escalation of violence in the Middle East in response to the Israel-Hamas war.
The president is also expected to bring up alleged Chinese operations to influence elections and human rights concerns.
He earlier said he was hopeful of restoring normal military-to-military communications.
The two leaders last met in person at a summit in Bali exactly one year and one day ago.
At the meeting on Wednesday, which took place near the Tenderloin district of San Francisco, protesters supporting a wide variety of causes held banners and chanted slogans outside the secure perimeter.
Protesters calling for an independent Tibet marched near others who accused China of oppressing its Uyghur population.
Another group calling for an end to the use of fossil fuels held signs alongside pro-China protesters who waved the country's red flag.