SHANGHAI, June 21 (Reuters) - China stocks fell on Wednesday as stimulus disappointed investors, sparking more policy easing arguments from analysts, while U.S. President Joe Biden on Tuesday called Chinese President Xi Jinping a dictator, hurting sentiment.

** China's blue-chip CSI300 Index lost 0.6%, and the Shanghai Composite Index slipped 0.4%.

** Hong Kong benchmark Hang Seng Index declined 1.9% and the Hang Seng China Enterprises Index dropped 2.1%.

** Other Asian stocks were also subdued as a lack of new stimulus steps from Beijing frustrated investors, who were also wondering just how hawkish the Federal Reserve would chose to be later in the session.

** China cut its key lending benchmarks on Tuesday to shore up a slowing economic recovery, but the cut to the five-year rate was smaller than many expected.

** "Policy easing is imminent and necessary to shift investment back to being a countercyclical rather than pro-cyclical force," said Morgan Stanley in a note.

** "If policymakers do not make concerted efforts to revive private sector dynamism, we think longer-term growth rates could slip even more than we are currently projecting."

** U.S. President Joe Biden on Tuesday called Chinese President Xi Jinping a dictator and said Xi was very embarrassed when a Chinese balloon was blown off course over the United States earlier this year.

** The first trip to China by a U.S. secretary of state in five years may have eased tensions that many saw escalating to dangerous levels, but the lack of progress on core issues means the relief will likely only be temporary.

** China on Wednesday announced an extension of a purchase tax break on new energy vehicles (NEVs), but it failed to lift up new energy shares.

** Shares in most sectors fell, with artificial intelligence down 3%, and health care lost nearly 2%.

** Tech giants listed in Hong Kong tumbled 2.2%.

(Reporting by Shanghai Newsroom)