Trump calls $14 billion Taiwan arms deal a 'negotiating chip' with China after Xi said Taiwan issue could lead to 'clashes and even conflicts' — Trump says 'Taiwan would be very smart to cool it a little bit'

TL;DR

President Trump stated he has not approved a $14 billion arms sale to Taiwan, calling it a ‘negotiating chip’ with China. The deal, ready since January, remains in limbo amid ongoing diplomatic tensions.

President Donald Trump has publicly described a pending $14 billion arms sale to Taiwan as a ‘negotiating chip’ with China, stating that he has not yet approved the deal and is holding it ‘in abeyance.’

The arms package, which includes PAC-3 MSE interceptors and NASAMS air defense missiles, has been ready for approval since Congress authorized it in January. Trump made the remarks during a Fox News interview taped in Beijing on Friday, at the end of a two-day summit with Chinese President Xi Jinping.

During the summit, Xi emphasized that Taiwan remains ‘the most important issue’ in bilateral relations and warned that mishandling it could lead to clashes or conflicts. Trump told reporters aboard Air Force One that the two leaders discussed Taiwan arms sales ‘in great detail,’ but he framed the sale as a strategic move rather than a finalized decision.

Why It Matters

This development underscores the ongoing diplomatic and military tensions involving Taiwan, China, and the United States. Trump’s characterization of the arms deal as a ‘negotiating chip’ suggests a potential leverage point in U.S.-China relations, which could influence future policy decisions and regional stability.

The situation is particularly sensitive given the recent high-level talks and China’s strong stance on Taiwan, which Beijing considers a breakaway province. The delay or potential use of the arms sale as bargaining leverage could impact diplomatic negotiations and regional security dynamics.

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Background

The $14 billion arms sale to Taiwan has been in the pipeline since January, when Congress approved it, but it has not been formally signed off by President Trump. The sale includes advanced missile systems aimed at strengthening Taiwan’s defense capabilities amid rising tensions with China.

Trump’s comments follow a summit with Xi Jinping, during which China reiterated its opposition to the sale and warned of possible conflicts if Taiwan’s status is not handled carefully. Historically, U.S. arms sales to Taiwan have been a contentious issue in U.S.-China relations, often used as leverage or bargaining chips in broader diplomatic negotiations.

“This is a very good negotiating chip with China. I have not approved it yet, and I am holding it in abeyance.”

— President Donald Trump

“Taiwan is the most important issue in our bilateral relationship, and mishandling it could lead to clashes or conflicts.”

— Chinese President Xi Jinping

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What Remains Unclear

It is not yet clear whether President Trump will ultimately approve the arms sale or use it as a bargaining tool in ongoing negotiations. The precise timing of any decision remains uncertain, and further diplomatic developments are expected.

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What’s Next

Next steps include continued diplomatic discussions between the U.S. and China, potential congressional action on the arms sale, and monitoring Taiwan’s response. The Biden administration’s stance on the sale’s approval may also influence future developments.

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Key Questions

Has the arms sale to Taiwan been officially approved?

No, President Trump stated he has not approved the sale and is holding it ‘in abeyance.’

Why is the arms sale significant?

The sale involves advanced missile systems that could impact regional security and U.S.-China-Taiwan relations, especially given the current diplomatic tensions.

What does calling it a ‘negotiating chip’ imply?

It suggests the arms sale could be used as leverage in diplomatic negotiations with China, rather than a finalized or imminent transfer of weapons.

How did China respond to the talks on Taiwan?

Xi Jinping emphasized Taiwan as a key issue and warned that mishandling it could lead to conflict, indicating China’s strong opposition to the arms sale.

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