"We think the meeting shows the intention from both sides to restore bilateral relations.
This could help reduce near-term risk of escalatory confrontation," Morgan Stanley analyst Robin Xing wrote in a Thursday note.
This also indicates a continued reduction in direct foreign investment and technology spillover to China, Xing said, which could weigh on China's long-term growth outlook.
Moving forward, the analyst believes that further stimulus and reforms in China are needed to help stabilize market confidence in the country.
According to Piper Sandler analyst Andy Laperriere, the economic and geopolitical relationships between the U.S. and China will remain locked in competition.
Persons:
Biden, Xi, Morgan Stanley, Robin Xing, Xing, Piper Sandler, Andy Laperriere, — Pia Singh
Organizations:
U.S
Locations:
China