U.S. President Joe Biden said Tuesday that China has "real problems," speaking at a fundraiser in San Francisco on the eve of an eagerly awaited meeting in the U.S. city between himself and his Chinese counterpart, Xi Jinping.

The leaders of the world's two largest economies will huddle on the sidelines of the APEC summit in California for their first encounter in a year as trade tensions, sanctions and the question of Taiwan have fueled quarrels between Washington and Beijing.

Biden, who like Xi arrived in San Francisco on Tuesday, has characterized the meeting as a chance to right ties that have floundered in recent years.