US defense and intelligence agencies found that the Chinese spy balloon shot down over the US this year had been equipped with American tech.
Biden made the remarks a day after Secretary of State Antony Blinken met Xi on a trip to China that was aimed at easing tensions between the two countries.
Earlier this week, Blinken said that he would pursue a visit to China when the conditions are right. He also added that the goal is not to contain China or engage in a new Cold War.
US President Joseph Biden will sign an executive order on Monday intended to curb the malicious use of digital spy tools around the globe, which target US personnel and civil society.
The US is seriously working to draw lessons from this war to prepare for a possible conflict with China over Taiwan.
On the one hand, there has been the view that China can be brought around and become a diplomatic partner of Washington.
The manufacture of weather balloons in China is dominated by Zhuzhou Rubber, which makes 75% of high-altitude balloons used by the China Meteorological Administration.
On Wednesday, several balloons carrying radar reflectors were shot down, Ukrainian officials told the UK.
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Taiwan's defense and foreign ministries did not immediately respond to a request for comment, and neither did the Pentagon.
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