BEIJING — Chinese President Xi Jinping warned U.S. President Donald Trump on Thursday that mishandling Taiwan could drive relations between the world’s two largest economies into conflict, even as both sides signaled progress in ongoing trade talks.
The warning came during Trump’s two-day visit to Beijing, the first by a U.S. president to China in nearly a decade. The summit is being closely watched as Washington and Beijing attempt to stabilize trade relations while managing rising tensions over Taiwan, regional security and the Iran war.
Chinese state readouts said Xi told Trump that Taiwan remained the most sensitive issue in U.S.-China relations and warned that poor handling of the matter could create a “dangerous situation” between the two countries.
Despite the sharp warning, the meeting at Beijing’s Great Hall of the People appeared cordial. Trump praised Xi during opening remarks and described the gathering as potentially the “biggest summit ever.”
Trade talks show signs of progress
Xi said trade and economic negotiations between Chinese and U.S. officials held in South Korea on Wednesday had produced “balanced and positive outcomes,” according to China’s foreign ministry.
The discussions focused on preserving a trade truce reached last October after months of economic tensions between Washington and Beijing. The agreement paused major tariff increases and helped ease pressure on global supply chains.
Officials familiar with the talks said both countries are working to establish longer-term mechanisms for trade and investment cooperation.
Trump is accompanied by several U.S. business leaders during the visit, including Elon Musk and Jensen Huang. The United States is seeking broader access for American industries in China, while Beijing wants Washington to ease restrictions on advanced semiconductor technology and chipmaking equipment.
Taiwan remains a major flashpoint
Taiwan continues to be one of the biggest sources of tension between the two governments.
China claims the self-governed island as its territory, while the United States remains Taiwan’s main arms supplier under U.S. law. A proposed $14 billion U.S. arms package for Taiwan remains under review by the Trump administration.
Taiwanese officials said China’s military activities around the island were increasing regional instability. Cabinet spokesperson Michelle Lee said strengthening defense capabilities and international deterrence remained essential for maintaining peace in the region.
Analysts said Xi’s remarks reflected Beijing’s growing concern over U.S. support for Taiwan and rising military activity in the Asia-Pacific region.
Iran war also discussed at summit
Alongside trade and Taiwan, the leaders also exchanged views on the Iran war, Ukraine and the Korean Peninsula, according to China’s official summary of the meeting.
Trump is expected to encourage Beijing to pressure Iran toward a diplomatic settlement with Washington. However, analysts say China is unlikely to distance itself significantly from Tehran, which Beijing views as an important strategic partner.
U.S. Secretary of State Marco Rubio said resolving instability in the Gulf was also in China’s economic interest because of its dependence on global shipping and energy supplies.
Xi is expected to make a reciprocal visit to the United States later this year, which would mark his first trip to Washington since Trump returned to office in 2025.
Also read: Trump-Xi meetings: A timeline of key encounters between US and Chinese leaders
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