US President Joe Biden said on Sunday that relations between Washington and Beijing should "improve very soon" after the United States this year shot down a Chinese balloon it suspected was for espionage.
Biden said relations had deteriorated in the months following his talks with Chinese President Xi Jinping at the G20 summit on the Indonesian island of Bali last November.
Washington's decision in February to shoot down a balloon it suspects was for espionage purposes flew over the United States sparked a diplomatic row between the world's two largest economies.
Secretary of State Antony Blinken's visit to Beijing was cancelled as an opportunity to improve relations because of what happened.
Electronic Chip Trading
During a news conference after the Group of Seven summit in Hiroshima, Japan, on Sunday, Biden was asked why a planned hotline between the United States and China was not operating.
Biden replied, "You're right, we should have an open hotline. At the Bali conference, that's what we agreed with President Xi."
"Then this silly airship that was loaded with spy equipment flew overflown ... over the United States."
Biden told reporters at the Group of Seven summit in Japan: "He dropped (the balloon) and everything changed in terms of dialogue. I think you'll see an improvement in relations very soon."
The Biden administration also angered China after it targeted the chip trade, arguing that it could be used for military purposes.
Biden defended the measures the day after the Group of Seven warned China about its "military activities" in the region.
"It's building its military, so I've made it clear I'm not willing to trade certain materials with China," Biden said.
"We now have a commitment from all our allies that they will not do that either," he said, noting that "this is not a hostile act."