US President Joe Biden stated on Sunday that ties between Washington and Beijing should be cooling off "very shortly" after the US shot down a suspected Chinese spy balloon this year. 

Biden stated that relations between the two deteriorated after talks with Chinese President Xi Jinping at the G20 summit in Bali in November.

In February, Washington shot down an alleged Chinese balloon that flew over the US, a subject of great contention at the time and created a diplomatic spat between the two nations.

At the time, US intelligence believed that the suspected "Chinese surveillance balloon", which was shot down by the US military, was part of a vast surveillance program of China's People's Liberation Army.
 
At the time, Secretary of State Antony Blinken had a scheduled visit to Beijing and it was canceled over the incident.

During a press conference on Sunday at the G7 summit in Hiroshima, Biden was asked why a planned hotline between the United States and China was not in the works. "You're right, we should have an open hotline. At the Bali conference, that's what President Xi and I agreed we were going to do and meet on," Biden responded.
 
"And then, this silly balloon that was carrying two freight cars worth of spying equipment was flying over the United States," he added.
 
"It got shot down and everything changed in terms of talking to one another. I think you're going to see that begin to thaw very shortly." 
 
China has also been angered by Biden's administration targeting of trade in advanced microchips, citing risks of military use. 
 
Biden warned China over its "militarisation activities" in the region on Sunday.

"It is building its military, and that's why I've made it clear that I am not prepared to trade certain items with China," the president said. "We've now got commitment from all of our allies that they're not going to do that either, provide that kind of material. 
 
"But that's not a hostile act, that's an act that says, 'we're going to make sure that we do everything we can to maintain the status quo.'"

It is noteworthy that China has repeatedly warned the US of its increased militarization of the region, particularly regarding arms sales to Taiwan, South Korea, and Japan.