Trump-Xi Summit: US, China Could 'Come Into Conflict' Over Taiwan: Xi's Big Warning To Trump

Chinese President Xi Jinping warned US President Donald Trump that the world's two largest economies could "come into conflict" if the issue over self-ruled Taiwan, claimed by Beijing, is mishandled, according to Chinese state media. Speaking during the bilateral summit with Trump, Xi reportedly called the issue of peace and stability across the Taiwan Strait the "most important issue in China-US relations".

Trump started his two-day China trip with accolades for his host, calling Xi a "great leader" and "friend", as he called for "a fantastic future together" for the two nations. But Xi used less effusive tones, saying the two sides "should be partners and not rivals" and highlighting the issue of Taiwan straight off the bat.

"The Taiwan question is the most important issue in China-US relations," Xi said, according to state broadcaster CCTV.

"If it is handled well, bilateral relations can remain generally stable. If mishandled, the two nations could collide or even come into conflict, pushing the entire China-US relationship into a highly perilous situation."

Xi's subtle threat came as Taiwan said the United States has 'reaffirmed its clear and firm support' for the island.

The Chinese leader added that Taiwan's so-called independence was "fundamentally incompatible" with peace in the Taiwan Strait.

"And peace in the strait is the greatest common ground between China and the United States," he said.

China's Taiwan Issue

Taiwan is the self-governing democracy that China regards as part of its territory. Beijing has not ruled out taking it by force, and in recent years, the Chinese military has ramped up drills -- including blockade simulations -- around the island, unsettling authorities in Taiwan as well as the island's allies.

Last year, the Trump administration approved an $11 billion weapons package for Taiwan but has yet to begin fulfilling it. Trump has also demonstrated greater ambivalence toward Taipei — an approach that's raising questions about whether he might be open to dialling back support for the island democracy.

Taiwan is the world's leading chipmaker, producing components essential to the development of artificial intelligence. Trump has sought to bolster trade deals with Taipei that can stimulate chip production in the US.

The US President personally called Nvidia's Jensen Huang to invite him to hop on Air Force One during a refuelling stop in Alaska on the way to Beijing. He's one of a large group of CEOs from the tech, defence, finance and agriculture sectors who are part of the delegation.

Xi Calls Trump To Be A Partner

Xi also told Trump the two countries should be "partners and not rivals" as they met for talks in Beijing.

"A stable China-US relationship is a boon for the world. Cooperation benefits both sides, while confrontation harms both. We should be partners and not rivals", Xi said.

He added he was "happy" to receive Trump for the US leader's first trip to China since 2017 as "the world has arrived at a new crossroads."

Trump's China Visit

Trump is in Beijing for the first state visit to China by a US leader in nine years, as the world's two largest economies look to stabilize ties with a summit playing out against the backdrop of the Iran war.

The White House has insisted that Trump wouldn't be making the trip without an eye toward securing results before he leaves -- suggesting there could be announcements coming on trade, including a Chinese commitment to buy US soybeans, beef and aircraft. Trump administration officials also want to work toward establishing a Board of Trade with China to address commercial differences between the countries.

But neither side has yet offered concrete details on what might come out of the three-day visit at a time when Beijing's close economic ties to Iran could complicate matters.

Trump's trip comes as Iran continues to dominate his domestic agenda and stoke fears about the prospect of a weakening US economy as the election season ahead of November's midterms -- when Republicans will be looking to maintain control of Congress -- begins heating up.