Trump Hesitates on $14 Billion Taiwan Arms Deal After Xi Summit as China Warns of ‘Conflict’

16th May 2026
Donald Trump said he has not yet decided whether to move forward with a massive new U.S. arms package for Taiwan after direct talks with Xi Jinping in Beijing, where the Chinese leader warned that tensions over the island could push the two superpowers toward “clashes and even conflicts.” Speaking aboard Air Force One after his three-day China visit, Trump said the White House is still weighing the proposed weapons sale despite growing pressure from Congress to strengthen Taiwan’s defenses. The package includes part of a previously approved $14 billion sale that still requires formal presidential approval before advancing to Congress. “I think the last thing we need right now is a war that’s 9,500 miles away,” Trump said after confirming Xi strongly objected to Taiwan independence and continued U.S. military backing for Taipei. The remarks immediately triggered concern among some Republicans, who argued delaying the package risks weakening deterrence against China. Congressman Michael McCaul said the U.S. “has to arm Taiwan so they can defend themselves,” while Rep. Brian Fitzpatrick compared support for Taiwan to backing Ukraine. Trump-Xi Talks Focused on Taiwan, Iran and Nuclear Weapons The Beijing summit was designed to calm increasingly strained U.S.-China relations as both governments grapple with the Iran conflict, trade disputes and rising military tensions in the Pacific. Trump claimed the talks produced “important progress” and said Xi gave a “very positive” response to the idea of a future nuclear pact involving the United States, China and Russia. Trump wants the three powers to negotiate new limits on nuclear warheads after the expiration of the New START treaty earlier this year. The two leaders also discussed the Iran war and the Strait of Hormuz, a critical oil shipping route heavily disrupted since fighting erupted in February. Trump said both governments agreed the strait needs to reopen to stabilize energy markets and ease pressure on the global economy. At the same time, major divisions remain. U.S. officials recently accused Chinese firms of supplying satellite imagery to Iran, while Treasury sanctions have targeted Chinese-linked oil operations allegedly tied to Tehran. Could Trump’s Taiwan Talks With Xi Trigger Legal and Policy Questions? Trump’s decision to openly discuss Taiwan arms sales with Xi is already drawing criticism from foreign policy analysts and some lawmakers in Washington. Much of the concern centers on the “Six Assurances,” a Reagan-era set of principles that has shaped U.S. dealings with Taipei for decades. One of those assurances states that Washington would not consult Beijing before approving weapons sales to Taiwan, a safeguard designed to stop China from influencing American military decisions involving the island. The assurances are not legally binding, but they still carry major weight in Congress and across U.S. national security circles. Trump’s acknowledgment that the subject came up during the summit is likely to anger some of Taiwan’s strongest supporters on Capitol Hill, especially Republicans pushing for faster military support for Taipei. The controversy also exposes how politically sensitive Taiwan arms deals have become inside Washington. Even as presidents control the approval process, Congress still plays a major oversight role — turning every major weapons package into both a foreign policy decision and a domestic political fight. Why Taiwan Matters to the Global Economy and AI Industry The battle over Taiwan now reaches far beyond military strategy. The island has become one of the most important links in the global technology economy and the race to dominate artificial intelligence. Taiwanese semiconductor manufacturers produce many of the advanced chips used in AI systems, smartphones, military hardware and massive data centers. Companies including NVIDIA and Apple depend heavily on that supply chain to keep products moving and AI infrastructure expanding. Because of that reliance, even small confrontations involving Taiwan now rattle global markets. Economists and investors have repeatedly warned that a military crisis or blockade around the island would disrupt chip exports almost immediately, sending electronics prices higher and putting further strain on an already fragile global economy. Now the stakes are even higher. The AI boom has dramatically increased demand for advanced semiconductors, turning Taiwan into one of the most economically sensitive flashpoints in the world. From a legal insight perspective, any escalation between Washington and Beijing would not stay confined to diplomacy for long — it could quickly hit financial markets, consumer technology, global supply chains and the wider AI industry. Trump Leaves Beijing Claiming ‘We Will Be Fine’ Despite the tensions, Trump repeatedly described the visit as successful and emphasized his personal relationship with Xi. The Chinese president hosted Trump inside the Zhongnanhai leadership compound, where the two leaders walked through gardens filled with ancient trees and Chinese roses before holding nearly three hours of talks over tea and lunch. Trump later joked that Xi had promised to send him rose seeds after he praised the grounds as some of the most beautiful he had ever seen. Even as Trump praised the visit and called the talks “great,” Republicans back in Washington were openly warning against any slowdown in military support for Taiwan. “It’s been really a great couple of days,” Trump told reporters before departing Beijing. Xi called the summit a “milestone” moment and said the countries had established a “constructive, strategic, stable relationship” — even as both governments continue preparing for possible confrontation over Taiwan, trade and military influence in Asia.