Chinese President Xi Jinping cautioned Donald Trump that a failure to manage the status of Taiwan could lead the two superpowers into a direct military confrontation, according to Reuters. Speaking during a high-stakes summit, Xi described the island's status as the most sensitive and critical pillar of the bilateral relationship.

Miscalculation regarding Taiwan risks a "highly perilous" collapse in ties that could see the nations collide, Xi added. The warning follows Beijing's fierce condemnation of a massive US arms sale to Taipei valued at $11.1bn, which stands as the largest weapons deal ever approved for the island.

Beijing maintains that the island is an integral part of its territory and insists on eventual reunification. Tensions have spiked recently, notably in December 2025, when the Chinese military conducted extensive drills simulating a blockade of major Taiwanese ports. These incursions and naval patrols have become increasingly assertive as Beijing's rhetoric shifts from preventing independence to demanding merger.

While the US officially adheres to its "One China" policy, it has ramped up security cooperation and hardware transfers to Taipei. Trump arrived in the capital on the evening of May 13 for the two-day event, accompanied by a delegation of over a dozen corporate executives. The agenda is expected to be dominated by the Iran conflict, trade friction, and competition over high-tech sectors.

The summit, which concludes on May 15, was preceded by a meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in South Korea. Before landing, Trump posted on social media that his first objective was to demand that Beijing "open up," adding that his business team would work their "magic" to help the People’s Republic of China reach a "higher level."