Mishandling Taiwan issue could lead to China-US conflict, warns Xi Jinping after ‘constructive’ talks with Donald Trump

China and the United States have agreed on a “new vision” for building “constructive” bilateral ties, Chinese President Xi Jinping said after holding talks with US President Donald Trump in Beijing on Thursday, while warning that tensions over Taiwan could seriously damage relations between the two nations.

Speaking after the first round of talks with Trump, Xi said the two leaders had agreed to pursue a relationship based on “strategic stability” over the coming years.

“I have agreed with President Trump on a new vision of building a constructive China-US relationship of strategic stability,” Xi said.

According to Chinese state media, Xi said the framework would guide ties between the two countries “over the next three years and beyond” and should be welcomed by people in both nations as well as the international community.

However, the Chinese president stressed that Taiwan remained the “most important issue” in China-US relations. He warned that mishandling the matter could destabilise ties and even lead to conflict.

“If it is handled properly, the bilateral relationship will enjoy overall stability. Otherwise, the two countries could face clashes and even conflicts,” Xi said.

Urging Washington to exercise caution on Taiwan, Xi said support for “Taiwan independence” was incompatible with peace and stability across the Taiwan Strait.

China considers Taiwan a renegade province and opposes any formal diplomatic engagement between Taipei and countries that recognise Beijing. The US, while acknowledging China’s position on Taiwan, continues to maintain informal ties and supply arms to the island.

Xi further said the proposed framework for bilateral ties should not remain “a mere slogan” and instead must translate into concrete action.

“Where disagreements and frictions exist, equal-footed consultation is the only right choice,” he said.

The summit marked the first visit by a sitting US president to China in nine years. Trump, who last visited Beijing during his first term in 2017, arrived on Wednesday accompanied by several top American business leaders, including Nvidia CEO Jensen Huang, Apple chief Tim Cook, Tesla and SpaceX CEO Elon Musk and BlackRock chairman Larry Fink.

Trade and economic cooperation also featured prominently during the discussions. Xi said talks between the economic teams of both countries had produced “generally balanced and positive outcomes”.

“The two sides should implement the important consensus we have reached, and make better use of communication channels in the political, diplomatic and military-to-military fields,” Xi said.

He added that China would continue opening its economy further and welcomed American companies to expand mutually beneficial cooperation in sectors including agriculture, healthcare, tourism and technology.

Earlier, Trump described the meeting with Xi as “maybe the biggest summit ever”, saying the two leaders discussed the Iran conflict, trade tensions, tariffs, technology and Taiwan.

Calling Xi a “great leader”, Trump said the two countries would have a “fantastic future together”, while Xi reiterated that China and the US should be “partners instead of rivals” and cautioned that “there is no winner in a trade war”.

The high-level talks come amid rising geopolitical tensions over the Iran conflict, renewed tariff disputes, export controls, rare earth supply chains and US arms sales to Taiwan.

The meetings are also being closely watched for potential developments concerning the US-Iran conflict and the Strait of Hormuz blockade, through which nearly one-fifth of global energy supplies pass.