Beijing condemns a $11B U.S. arms sale to Taiwan ahead of high-stakes trade talks with Washington.
The Trump-Xi summit began Thursday with global markets watching for signs of progress on U.S.-Iran tensions and trade disputes. However, Beijing prioritized Taiwan, condemning an $11B U.S. arms package approved last week as a major obstacle to negotiations.
Analysts had expected the summit to focus on easing geopolitical conflicts, particularly Iran’s role in Hormuz. Instead, China’s sharp response to the Taiwan deal signals deeper divisions over regional security, overshadowing economic discussions.
No immediate market reaction was reported, but investors remain cautious as trade and geopolitical risks persist.