China Demanding Concessions from Trump on Taiwan for Trade Deal

China is reportedly pressing the United States to make concessions on Taiwan as a condition for any future trade deal. The demands come ahead of Chinese President Xi Jinping’s planned meeting with U.S. President Donald Trump at the APEC Summit in South Korea at the end of October.

According to multiple reports over the weekend, Beijing has linked trade relief to U.S. actions regarding Taiwan, including halting arms sales and changing Washington’s public stance on the island. On Sunday, the Wall Street Journal, citing White House sources, reported that China specifically requested the cancellation of U.S. arms sales to Taiwan in exchange for tariff reductions and other economic concessions.

The report follows an assessment published Friday by the Institute for the Study of War (ISW), which claimed the Trump administration quietly cancelled a $400 million military aid package to Taiwan earlier this summer. The timing of that cancellation appears to align with Beijing’s push to pressure Washington ahead of the October summit.

Perhaps most notably, Xi is expected to demand that Trump issue an official statement opposing Taiwan’s independence—something Chinese officials are treating as a “non-negotiable” precondition in broader talks. Such a move would mark a major shift in U.S. policy and signal that Taiwan may be treated as a bargaining chip in larger U.S.-China relations.

At the start of his second term in January, Trump had directed his administration to focus on countering China, with Defense Secretary Pete Hegseth pushing a strategy centered on the Taiwan Strait and South China Sea. However, after a brief trade war in the spring highlighted U.S. vulnerabilities—particularly China’s dominance in rare earth minerals critical to U.S. industries—Washington appears to be reconsidering its approach.

This would not be the first time the U.S. signaled concessions. In June 2023, former Secretary of State Antony Blinken traveled to Beijing and publicly declared U.S. opposition to Taiwanese independence, a statement that was widely reported to have been a precondition for Xi to accept his visit. The October summit could force Trump into a similar position, setting the stage for a pivotal moment in U.S.-China relations.