Taiwan emerges as the defining issue of the Trump-Xi summit

Trump's two-day Beijing visit opened with talk of agriculture, aircraft and tariffs, but the dominant theme became Taiwan. Both leaders said commercial dialogue would continue, yet reporters noted the tone tightened when arms sales came up. Throughout, Trump said he had "given Beijing nothing" on Taiwan.

China's Ministry of Commerce announced a new Trade Council to handle reciprocal tariff cuts, but Beijing's response on Taiwan was notably quieter. Analysts say Chinese officials will study Trump's Taiwan remarks word by word over the coming days. According to CNBC, whether the White House accelerates the pending defense package will be a key signal.

In markets, defense contractors and semiconductor suppliers are watching the aftermath closely. For names like Lockheed Martin and TSMC, the balance across the Taiwan Strait directly affects order books and shipment schedules. Investors are now asking how far Washington's concrete steps in the coming weeks will back up Trump's diplomatic language.