President Joe Biden and his Chinese counterpart Xi Jinping decided to organize their first in-person summit during a phone conversation on Thursday, in which Xi cautioned the US not to "play with fire" in Taiwan, news agency AFP reported.
The summit would be their first in-person encounter as leaders, despite the fact that this was their fifth phone or video conference since Biden entered office a year and a half ago. The time and place have not been specified.
The official, who spoke on the condition of anonymity, said they "discussed the benefits of meeting face-to-face and agreed to have their teams follow up to identify a mutually suitable time to do so," Reuters reported.
The discussion, which lasted two hours and 17 minutes, was regarded by both parties as a strong debate on the many disagreements between the world's two largest economic powers, news agency AFP reported.
According to China's state-run Xinhua news agency, Xi spoke harshly about US policies toward Taiwan, a democratic island with deep links to the US that China considers part of its territory.
Speaking with Biden, Xi said, "Those who play with fire will eventually get burned. I hope the US side fully understands that."
Tensions in Taiwan are rising as some fear that Xi would command an invasion to enforce Beijing's sovereignty.
In the most recent flare-up, Chinese officials are enraged by rumoured intentions by Biden ally and House Speaker Nancy Pelosi to visit the island.
Although US leaders often visit Taiwan, which is separated from the Chinese mainland by a small strip of water, Beijing regards Pelosi's visit as a huge provocation. She is second in line to the President of the United States and, as such, may travel via military transport.
If the trip goes forward, Washington will "bear the consequences," China said on Wednesday.
During the call, Xi was cited as saying to Biden, "the Chinese government and people's position on the Taiwan issue is consistent."
"It is the firm will of the over 1.4 billion Chinese people to firmly safeguard China's national sovereignty and territorial integrity," he said.
In response, Biden informed Xi that US policy remained unchanged, effectively maintaining the status quo in Taiwan, with Washington acknowledging Chinese sovereignty but opposing any enforcement, enabling the Taiwanese to continue their own rule.
"On Taiwan, President Biden underscored that the United States policy has not changed and that the United States strongly opposes unilateral efforts to change the status quo or undermine peace and stability across the Taiwan Strait," the White House said in a statement.