Taiwan matters for two big reasons, the semiconductors that power your everyday life and the risk of *** direct conflict between the United States and China. Taiwan is where technology, money, and military risk all come together. It is *** small island off China's coast that produces almost 90% of the world's most advanced semiconductors. That powers most of what you use from your phone to your laptop, also AI systems and military equipment. If tensions disrupted that chipmaking, it could mean delays and higher costs. But the stakes go much further. Taiwan is self-governed, but China claims it as its own territory. It has not ruled out taking the island by force. During last night's closed-door meeting, President Xi warned President Trump that mishandling Taiwan could lead to clashes or conflicts between the US and China. The warning comes as President Trump has authorized an $11 billion arms package for Taiwan but has not yet moved forward with delivery. Taiwan is the most dangerous issue because it's the only thing that I believe plausibly could take us to the brink of war or cross over that brink. That does not mean war is imminent, but the US is walking *** tightrope trying to. Support Taiwan without triggering *** direct conflict with China. For Americans at home, the risk impacts both the economy and military. Tonight, President Trump will continue his trip in China focusing on trade, technology, and whether the two sides can prevent this tense relationship from getting worse. At the White House, I'm Christopher Sales.
President Xi warns President Trump that Taiwan tensions could lead to conflict
Chinese President Xi Jinping cautioned President Donald Trump during a closed-door meeting in Beijing that mishandling Taiwan could lead to clashes or conflict between the U.S. and China.
Updated: 5:31 PM EDT May 14, 2026
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President Donald Trump will wrap up a high-stakes meeting with Chinese President Xi Jinping in Beijing, where discussions have included trade, the Iran War, and artificial intelligence. During the overnight meeting, Xi warned Trump that differences over Taiwan could escalate into clashes or conflict between the U.S. and China. Taiwan, a self-governed island off China’s coast, is claimed by China as its territory. Beijing has not ruled out taking the island by force. Taiwan produces nearly 90% of the world’s most advanced semiconductors, which power devices like phones, laptops, artificial intelligence systems, and military equipment. Disruptions to Taiwan’s chip production could result in delays and higher costs, but the stakes extend beyond economic concerns. Trump has authorized an $11 billion arms package for Taiwan, though delivery has not yet moved forward. "Taiwan is the most dangerous issue," Michael O’Hanlon of the Brookings Institution said. "Because it's the only thing that I believe plausibly could take us to the brink of war or cross over that brink." While war is not imminent, the U.S. is navigating a delicate balance in supporting Taiwan without triggering a direct conflict with China. The situation carries implications for both the economy and the military. Trump’s trip to China continues tonight, with further focus on trade, technology, and efforts to prevent worsening tensions between the two nations. Trump also said Xi agreed to help end the Iran War and reopen the Strait of Hormuz, a vital oil shipping route. China, the largest buyer of Iranian oil, assured the U.S. it would not provide Iran with military equipment. Xi additionally raised the concept of the "Thucydides Trap," which refers to the risk of conflict when a rising power, like China, and an established power, like the U.S., collide. Xi emphasized the importance of avoiding competition turning into confrontation.
WASHINGTON — President Donald Trump will wrap up a high-stakes meeting with Chinese President Xi Jinping in Beijing, where discussions have included trade, the Iran War, and artificial intelligence.
During the overnight meeting, Xi warned Trump that differences over Taiwan could escalate into clashes or conflict between the U.S. and China. Taiwan, a self-governed island off China’s coast, is claimed by China as its territory. Beijing has not ruled out taking the island by force.
Taiwan produces nearly 90% of the world’s most advanced semiconductors, which power devices like phones, laptops, artificial intelligence systems, and military equipment. Disruptions to Taiwan’s chip production could result in delays and higher costs, but the stakes extend beyond economic concerns.
Trump has authorized an $11 billion arms package for Taiwan, though delivery has not yet moved forward.
"Taiwan is the most dangerous issue," Michael O’Hanlon of the Brookings Institution said. "Because it's the only thing that I believe plausibly could take us to the brink of war or cross over that brink."
While war is not imminent, the U.S. is navigating a delicate balance in supporting Taiwan without triggering a direct conflict with China. The situation carries implications for both the economy and the military.
Trump’s trip to China continues tonight, with further focus on trade, technology, and efforts to prevent worsening tensions between the two nations.
Trump also said Xi agreed to help end the Iran War and reopen the Strait of Hormuz, a vital oil shipping route. China, the largest buyer of Iranian oil, assured the U.S. it would not provide Iran with military equipment.
Xi additionally raised the concept of the "Thucydides Trap," which refers to the risk of conflict when a rising power, like China, and an established power, like the U.S., collide. Xi emphasized the importance of avoiding competition turning into confrontation.