In a move that could reshape US–Taiwan relations, President Donald Trump has reportedly declined to approve more than $400 million in military aid for Taiwan¹, just days before crucial trade negotiations with Chinese President Xi Jinping. For Beijing, which considers Taiwan a breakaway province, such military assistance remains a red line. Between Trade Deals and Defense CommitmentsFriday’s planned conversation between Trump and Xi marks their second call since Trump’s return to the Oval Office earlier this year. Analysts warn that reducing military aid to Taiwan, even temporarily, could be interpreted by China as a sign of wavering resolve—potentially emboldening Beijing’s ambitions in the region. By using Taiwan’s aid as leverage in negotiations with Xi, he may be seeking greater concessions on trade, technology, and global supply chains.

Source: Washington Post January 03, 2026 14:34 UTC