Xi Warns Trump of Possible "Clash" Over Taiwan Just Hours Before Banquet Toast
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Xi Warns Trump of Possible "Clash" Over Taiwan Just Hours Before Banquet Toast
"If the issue is "handled poorly," Xi said, the two countries could "collide or even clash," putting the entire U.S.-China relationship in "an extremely dangerous situation." The remarks, carried by Xinhua, China's official news agency, came during the first U.S. presidential visit to China in nearly a decade. By evening, the tone had shifted to toasts and choreographed warmth, with Trump inviting Xi to the White House on Sept. 24. But the daylight warning is the part that matters for American businesses, investors, and consumers."
"Most Americans think of Taiwan as a geopolitical flashpoint. It is also one of the country's most important economic partners. Taiwan was the fifth-largest U.S. goods trading partner in 2025, according to data from the Congressional Research Service, with $256.1 billion in two-way goods trade. U.S. imports from Taiwan totaled $201.4 billion that year, up 73.3% from 2024. Taiwan is also the 10th-largest foreign holder of U.S. Treasuries, with $310.6 billion in holdings as of December 2025."
"The bigger story sits inside the supply chain. Taiwan produces the chips that power nearly every advanced device in American life, from iPhones to data center servers running artificial intelligence. Taiwan Semiconductor Manufacturing Company, known as TSMC, captured roughly 70% of the global foundry market in 2025, according to research firm TrendForce. Its closest competitor, Samsung, sat at about 7%. TSMC manufactures the most advanced chips on the planet, and the list of its customers reads like a roster of America's largest companies."
Xi Jinping warned that mishandling the Taiwan issue could lead to collision or even clash, placing U.S.-China relations in an extremely dangerous situation. The warning came during the first U.S. presidential visit to China in nearly a decade, though later events shifted to ceremonial warmth. Taiwan is a major economic partner for the United States, ranking as the fifth-largest goods trading partner with $256.1 billion in two-way goods trade and $201.4 billion in U.S. imports. Taiwan also holds significant U.S. Treasury assets, totaling $310.6 billion as of December 2025. Taiwan’s semiconductor production underpins advanced devices and data center systems, with TSMC producing most leading-edge chips and holding about 70% of the global foundry market.
Read at 24/7 Wall St.
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