U.S. SECRETARY OF STATE ANTONY BLINKEN 鈥 PPA POOL/MARIANNE BERMUDEZ

WASHINGTON/BEIJING 鈥 US Secretary of State Antony Blinken arrives in Shanghai on Wednesday with US-China ties on a steadier footing, but with a daunting array of unresolved issues threatening the stability of relations be-tween the global rivals.

Mr. Blinken will meet with business leaders before heading to Beijing for talks on Friday with his counterpart, Foreign Minister Wang Yi, and a likely meeting with President Xi Jinping.

Mr. Blinken鈥檚 visit is the latest high-level contact between the two nations that, along with working groups on issues from global trade to military communication, have tempered the public acrimony that drove relations to his-toric lows early last year.

But Washington and Beijing have made little headway on curbing China鈥檚 supply of chemicals used to make fentanyl, Taiwan remains a flashpoint, and strains are intensifying over China鈥檚 backing of Russia in its war in Ukraine.

While significant progress is unlikely during the visit, both countries want 鈥渙pen lines of communication to avoid awkward scenarios,鈥 said Alfred Wu, associate professor at the Lee Kuan Yew School of Public Policy in Singapore. Mr. Blinken will press China to stop its firms from retooling and resupplying Russia鈥檚 defense industrial base. Moscow invaded Ukraine in February 2022, just days after agreeing a 鈥渘o limits鈥 partnership with Beijing, and while China has steered clear of providing arms, US officials warn Chinese companies are sending dual-use technology that helps Russia鈥檚 war effort.

Without providing details, a senior State Department official briefing reporters on Friday said Washington was prepared to 鈥渢ake steps鈥 against Chinese firms it believes are damaging US and European security. The United States has preliminarily discussed putting sanctions on Chinese banks over the country鈥檚 support for Russia, but officials told Reuters they do not yet have a plan to do so.

Washington has so far stopped short of sanctioning major Chinese banks 鈥 long deemed by analysts as a 鈥渘uclear鈥 option 鈥 because of the effects it could have across the global economy and on US-China relations.

A Chinese foreign ministry official quoted by state news agency Xinhua on Tuesday said relations 鈥渉ave shown a trend of stopping decline and stabilizing,鈥 since Joseph R. Biden, Jr. and Mr. Xi met in San Francisco in November.

But the official criticized what they called Washington鈥檚 鈥渟tubborn strategy of containing China, and its erroneous words and deeds of interfering in China鈥檚 internal affairs, tarnishing China鈥檚 image and undermining China鈥檚 in-terests.鈥

CALL FOR 鈥楻ESTRAINT鈥 OVER TAIWAN
The visit also comes after the US Congress moved ahead this weekend with a bill that includes new funding for Taiwan and less than a month before the self-governing island inaugurates a new president, Lai Ching-te, who like his predecessor rejects China鈥檚 claim to the island.

The senior State Department official said parties should 鈥渁void taking provocative actions that may raise tensions, and demonstrate restraint鈥 ahead of the inauguration. 鈥淭hat will be our message going forward,鈥 the official added. An effort to force China鈥檚 ByteDance to sell the social media app TikTok or face a ban in the US is also gaining steam in Congress, a sign of the growing appetite in Washington to confront Beijing on economic issues. Mr. Blinken is also expected to raise human rights, including China鈥檚 treatment of Muslims in its western Xinjiang region.

Other US officials have met or called their Chinese counterparts recently as part of the broader US effort to keep lines of communication open.

Treasury Secretary Janet Yellen was in Beijing and the southern factory hub of Guangzhou earlier this month, and last week Defense Secretary Lloyd Austin spoke with his Chinese counterpart for the first time in 18 months.

Mr. Biden鈥檚 national security adviser Jake Sullivan has also held regular talks with Mr. Wang, aiming as the administration says, to responsibly manage competition between the two powers.

Despite the tensions there have been attempts to find common ground on issues such as the Middle East conflict.

After an alleged Israeli strike on an Iranian consular facility in Damascus earlier this month, Blinken spoke with Mr. Wang, as well as with representatives of other countries with ties to Iran, 鈥渢o make clear that escalation is not in anyone鈥檚 interest, and that countries should urge Iran not to escalate,鈥 a State Department spokesperson said on April 11.

Wang Huiyao, founder and president of the Beijing-based think tank Center for China and Globalization, told Reuters that contact showed the potential of the two countries working together.

鈥淭hey sell all their oil to China,鈥 Mr. Wang said of Iran, 鈥渟o when China says, 鈥極K, you just stop,鈥 then they have to think about it.鈥 鈥 Reuters