US-China conflict possible if Taiwan issue mishandled: Xi tells Trump
What's the story
Chinese President Xi Jinping told US President Donald Trump that the two nations could "come into conflict" if the Taiwan issue is mishandled. Xi made the statement during a bilateral summit where he called peace and stability across the Taiwan Strait "the most important issue in China-US relations." He said, "If it is handled well, bilateral relations can remain generally stable. If mishandled, the two nations could collide....come into conflict, pushing the entire China-US relationship into a highly perilous situation."
Xi
Taiwan independence 'fundamentally incompatible' with peace
Xi said that peace across the Taiwan Strait is "irreconcilable as fire and water" with Taiwan independence, according to Xinhua News Agency. "Safeguarding peace and stability across the Taiwan Strait is the biggest common denominator between the two countries," he added. He added that Taiwan independence is "fundamentally incompatible" with peace in the Taiwan Strait.
Taiwan's position
China has intensified military drills around Taiwan
Taiwan is a self-governing democracy that China claims as its territory. In recent years, China's military has intensified drills around the island, including blockade simulations. This has raised concerns among Taiwanese authorities and their allies. Last year, the Trump administration approved an $11 billion weapons package for Taiwan but it remains unfulfilled.
Economic impact
Trump tries to boost chip production in the US
Taiwan is a major player in the global chipmaking industry, producing key components for artificial intelligence development. Trump has tried to strengthen trade deals with Taipei to boost chip production in the US. During his trip to Beijing, he personally invited NVIDIA CEO Jensen Huang on Air Force One during a refueling stop in Alaska. Huang is part of a large delegation of CEOs from various sectors accompanying Trump.
Diplomatic relations
Xi calls for cooperation, not confrontation
During their talks in Beijing, Xi also emphasized that China and the US should be "partners and not rivals." "Cooperation benefits both sides, while confrontation harms both," he said. "The two countries should be partners rather than rivals, achieve success together and pursue common prosperity, and chart a correct path for major-country relations in the new era," he said, adding that he wants 2026 to be a "landmark year" in the countries' relations.