Taiwan Defends US Arms Sales as Key to Chip Supply After Trump-Xi Summit

3 min read
Taiwan Defends US Arms Sales as Key to Chip Supply After Trump-Xi Summit
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Taiwan's deputy foreign minister says continued U.S. arms sales protect the island's chip industry and serve Washington's own interests, days after Donald Trump and Xi Jinping wrapped a summit without resolving the Taiwan question. A pending about $14 billion weapons package remains undecided, a factor tied to geopolitical risk around the region's chip supply chain.

Taipei pushes back on concessions

Taiwan Deputy Foreign Minister Francois Wu said Saturday that continued U.S. arms sales to Taiwan serve Washington's own national interest, not just the island's defense. His comments followed the conclusion of a three-day summit between Trump and Xi in Washington that produced no major public breakthroughs on Taiwan and other contentious issues.

Wu questioned whether making concessions over Taiwan would serve U.S. interests, arguing that continued weapons sales and sufficient defensive capability protect the island from Chinese control and let its semiconductor industry keep supplying global markets. Taiwan remains the main producer of advanced chips used in artificial intelligence applications, giving the island a major role in global technology supply chains.

A $14 billion package still in limbo

Attention now centers on a pending U.S. weapons package worth about $14 billion. Trump said after meeting Xi in Beijing in May that the package was being held in abeyance, and he has not announced a decision following the Washington summit. Reuters previously reported that Beijing wanted Washington to halt arms sales.

That uncertainty follows the $11 billion arms package the Trump administration approved for Taiwan in December, the largest on record. Wu said Taipei kept up continuous communication with Washington around the summit and would keep seeking assurances of U.S. support.

Washington and Beijing hold their positions

According to Reuters, Xi told Trump he hoped Washington would maintain what Beijing calls the "correct position" of opposing Taiwanese independence. U.S. Ambassador to China David Perdue told CNBC Friday that Trump's Taiwan policy had not changed, including Washington's position under the Taiwan Relations Act, which requires the U.S. to provide Taiwan with the means to defend itself.

China considers Taiwan part of its territory and has repeatedly opposed U.S. weapons sales to the island; Taiwan's government rejects Beijing's sovereignty claims. China's People's Daily reiterated Saturday that Taiwan remains a core Chinese interest and a red line in relations with Washington.

Source: Investing.com

Trading involves risk.

Most traded markets

BTC / USD
+0.08% 84,020.6
XAU / USD.24
+0.05% 4,287.06
ETH / USD
+0.66% 2,687.43
SOL / USD
+3.91% 120.52
XRP / USD
+1.6% 1.5508
AVAX / USD
+5.1% 10.675
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse World News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.