Xi warns Trump of conflict risk over Taiwan as summit concludes with Hormuz accord
Leaders issue joint statement on Strait of Hormuz navigation while Chinese Foreign Ministry confirms closed-door warnings on Taiwan policy.
Chinese President Xi Jinping delivered a stark warning to US President Donald Trump during a closed-door meeting in Beijing, cautioning that missteps regarding Taiwan could precipitate conflict between the two nations. The Chinese Foreign Ministry confirmed that the initial discussion lasted more than two hours, setting a serious tone for the first visit by a US president to China since 2017.
The formal talks were followed by a banquet where both leaders emphasised the importance of cooperation. President Trump subsequently described the discussions as extremely positive and productive, signalling a diplomatic effort to manage bilateral tensions despite the underlying strategic disagreements.
The summit, which covered trade, artificial intelligence, and geopolitical tensions surrounding Iran, concluded with a joint statement affirming that the Strait of Hormuz must remain open to support the free flow of energy. The White House confirmed that President Xi explicitly articulated China’s opposition to the militarisation of the strait and any attempts to impose tolls for its use.
US Treasury Secretary Scott Bessent stated that China would engage in behind-the-scenes efforts to assist in reopening the Strait of Hormuz. This agreement represents a diplomatic alignment between Washington and Beijing on the principle of free navigation, addressing critical disruptions to global energy flows.
Market reactions to the summit were largely positive, with US stock indices rising on the day of the talks. The Dow Jones Industrial Average gained 0.8 per cent, while the S&P 500 and Nasdaq Composite rose by 0.3 per cent and 0.2 per cent respectively. Nvidia shares surged more than 2 per cent following news that the US approved H200 chip sales to Chinese firms.
Key US technology executives, including Elon Musk, Tim Cook, and Jensen Huang, attended the summit, reflecting the significant role of the technology sector in the bilateral agenda. The conclusion of the two-day event underscores the complex interplay between security warnings and economic pragmatism in US-China relations.
