Xi warns Trump that mishandling the Taiwan issue could lead to conflict.

At the start of a two-day summit on Thursday, China’s Xi Jinping told President Donald Trump that trade talks were moving forward, but warned that disputes over Taiwan could steer relations onto a risky path and potentially spark conflict.

Xi’s remarks on Taiwan, the democratically governed island claimed by Beijing, came in a closed-door meeting of the leaders of ‌the world’s two largest economies that ran more than two hours, China’s foreign ministry said.

They represented a stark – if not unprecedented – warning during a pomp-filled occasion that was otherwise friendly and relaxed, although the U.S. summary of the talks made no mention of Taiwan.

U.S. Secretary of State Marco Rubio, who is with Trump in China, confirmed to the Newsmen that the issue of Taiwan was discussed, saying the Chinese “always raise it on their side, we always make clear our position and we move on to the other topics.”

The U.S. summary of the talks highlighted the leaders’ mutual goal of reopening the vital Strait of Hormuz, which has been effectively closed due to the war with Iran, as well as Xi’s apparent interest in purchasing American oil to lessen China’s reliance on Middle Eastern supplies.

With Trump’s approval ratings hurt by an ongoing war with Iran, the first visit by a U.S. president to China in almost ten years has taken on extra importance as he looks for economic victories.

“There ⁠are those who say this may be the biggest summit ever,” Trump told Xi in brief opening remarks, after a ceremony that featured an honour guard and throngs of children waving flowers and flags at Beijing’s Great Hall of the People.

Xi told ​Trump that preparatory negotiations between U.S. and Chinese economic and trade teams in South Korea on Wednesday had reached “balanced and positive outcomes”, China’s foreign ministry said in a summary.

The talks sought to preserve a delicate trade truce reached when the leaders last met in October, with Trump pausing steep tariffs on Chinese goods and Xi stepping back from restricting global supplies of crucial rare earths.

Treasury Secretary Scott Bessent, who led Wednesday’s talks, said he anticipated progress on setting up mechanisms to boost future bilateral trade and investment, along with an announcement about significant Chinese orders for Boeing aircraft.

Earlier this week, Trump mentioned he expected Xi to bring up the thorny issue of U.S. arms sales to Taiwan. With a $14 billion package still awaiting his approval and its fate uncertain, China has once again voiced strong opposition to the deal.

The U.S. is bound by law to provide ​Taiwan with the means to defend itself, despite a lack of formal diplomatic ties.

“U.S. policy on the issue of Taiwan is unchanged as of today,” Rubio told NBC.

The Chinese leader told Trump that Taiwan was the most important issue they faced and ​if handled poorly could push the entire U.S.-China relationship into an extremely dangerous situation and cause the countries to collide or even enter conflict, according to Beijing’s summary of the talks.

Trump ignored a reporter’s shouted question about whether the leaders had discussed Taiwan as he later posed with Xi for photos at the Temple of Heaven, a UNESCO World Heritage Site where emperors once prayed for good harvests.

Taipei said the summit held no surprises, adding that China’s military pressure is the true threat to peace.

At a lavish state banquet attended by senior officials and business executives, Xi told the audience that the China-U.S. relationship was the most important in the world.

“We must make it work and never mess it up,” Xi said, before guests tucked into a 10-course dinner that included lobster soup, Beijing roast duck and tiramisu.

The leaders will take tea and lunch together on Friday before Trump departs.

Accompanying Trump on his visit is a group of CEOs aiming to address issues with China, including Elon Musk, seen there as both a visionary and occasional villain, and Nvidia CEO Jensen Huang, who joined the delegation at the last minute.

At a lavish state banquet attended by senior officials and business executives, Xi told the audience that the China-U.S. relationship was the most important in the world.
“We must make it work and never mess it up,” Xi said, before guests tucked into a 10-course dinner that included lobster soup, Beijing roast duck and tiramisu.

The leaders will take tea and lunch together on Friday before Trump departs.
Joining Trump on his visit are a group of CEOs looking to resolve issues with China, from Elon Musk, viewed in China as a visionary ​and occasional villain, to Nvidia (NVDA.O), opens new tab CEO Jensen Huang, a late addition to ​the delegation.

Trump entered the talks with a weakened hand.
U.S. courts have hemmed in his ability to levy tariffs at will on exports from China and other countries, while the Iran war has boosted inflation at home and escalated the risk that Trump’s Republican ​Party will lose control of one or both legislative branches in November’s midterm elections.

Though the Chinese economy has faltered, Xi does not face comparable economic or political pressure.
As well as ​Boeing jets, Washington is looking to ⁠sell farm goods and energy to China to cut a trade deficit that has long irked Trump. Beijing, for its part, wants U.S. curbs eased on exports of chip-making equipment and advanced semiconductors, officials involved in the planning said.

Trump is expected to urge China to persuade Iran to strike a deal with Washington to end the conflict, since about a fifth of the world’s oil and natural gas flows through the Strait of Hormuz in normal times. However, analysts doubt Xi will push Tehran hard or cut military support, given Iran’s value to Beijing as a strategic counterbalance to the United States. Rubio told Fox News it’s in China’s interest to help resolve the crisis, as many of its ships are stuck in the Gulf and a global economic slowdown would hurt its exporters. On Thursday, Iran’s Fars news agency reported an agreement to allow some Chinese ships to pass.