Chinese President Xi Jinping warned US President Donald Trump on Thursday that mishandling the issue of Taiwan could place relations between the world’s two largest economies in “great jeopardy,” as the two leaders opened a high-stakes summit in Beijing focused on trade, security and global stability.
Xi told Trump that the Taiwan issue remains “the most important issue in China-US relations” and warned that the two countries “will have clashes and even conflicts” if the matter is not handled properly, according to Chinese state media.
The remarks came during the first round of talks between the two leaders at Beijing’s Great Hall of the People, launching a two-day summit expected to address a broad range of issues including tariffs, artificial intelligence, Iran and rare earth supplies.
Beijing considers the self-ruled island of Taiwan part of its territory and has repeatedly vowed to oppose any move toward formal independence. Taiwan’s government rejects China’s sovereignty claims.
Xi reiterated Beijing’s long-standing position that “Taiwan independence” and peace in the Taiwan Strait are “as irreconcilable as fire and water,” according to state news agency Xinhua.
The warning underscored the continued sensitivity of the Taiwan issue despite efforts by both sides to stabilise ties after years of economic and strategic rivalry.
The Donald Trump administration has maintained strong informal ties with Taiwan while officially adhering to the “One China” policy, under which Washington recognises Beijing diplomatically but continues security and economic engagement with Taipei.
Trump did not publicly respond to questions about Taiwan during his appearance alongside Xi, though US officials later described the meeting as constructive.
A White House readout said the leaders held “a good meeting” focused on enhancing economic cooperation between the United States and China.
The discussions also touched on geopolitical tensions in the Middle East, including the importance of maintaining open shipping routes through the Strait of Hormuz amid the ongoing Iran conflict.
According to US officials, Xi expressed interest in increasing Chinese purchases of American oil to reduce dependence on Middle Eastern shipping routes, while both sides discussed expanding Chinese imports of US agricultural products.
The summit also drew prominent American business leaders, reflecting the economic stakes tied to US-China relations.
Executives including Elon Musk, Tim Cook and Jensen Huang joined part of the delegation accompanying Trump to Beijing.
At a state banquet later Thursday, both leaders struck a conciliatory tone despite underlying tensions.
Xi described US-China ties as “the most important bilateral relationship in the world” and said both countries should be partners rather than rivals, emphasising the importance of “mutual respect” in maintaining stability.
Trump referred to Xi as a “friend” and described the bilateral relationship as one of the most consequential in modern history.
“We have an opportunity to create a future of greater prosperity, cooperation and happiness,” Trump said, adding that earlier talks had been “extremely positive and constructive.”
Xi also raised the concept of the “Thucydides Trap,” a theory suggesting that conflict often emerges between a rising power and an established one.
The Chinese president asked whether the US and China could avoid such a trajectory and instead work together to address major global challenges and preserve international stability.
Analysts say the summit represents an important effort by both governments to manage tensions while maintaining economic engagement, particularly as competition intensifies in areas such as technology, trade and security.
Despite the positive rhetoric, major disagreements remain over Taiwan, semiconductor restrictions, artificial intelligence and strategic influence in Asia.
The two leaders are expected to continue discussions through Friday, with further talks likely to shape the direction of relations between Washington and Beijing during a period of heightened geopolitical uncertainty.