Ms Nielsen told Sky News Australia: “Holding the line here is quite important just for that global security.
“We are in a bit of a global reset whether that is what Xi is calling for or not.
“This is when we are seeing a rise in popularism around the world, and China certainly wants to assert itself as a dominant power.
“But they are that dominant power in the region.”
“So there is no benefit to be grandstanding with them, to be overstepping that line,” she added.
“But at the same time, Joe Biden needs to make sure that they know that the US is in control.
“I think we are going to start seeing this play out in a more traditional way.
“With things like tariffs, trade repercussions as opposed to any kind of strong language from the President.”
Mr Stewart replied: “Biden certainly campaigned as being just as tough on China as Trump.
“I don’t think he has been good to that word, he has kept the trade sanctions, he has basically not changed or softened his attitude towards China at all.
“But Joe Biden also hasn’t progressed his attitudes on China in any way.
“This is only the second time they have spoken – that is remarkable and it is almost like the relationship between these two superpowers is in a stalemate.”