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Trump's Taiwan Arms Deal Puts $14B in Limbo as China Gains Leverage

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President Trump has put a $14 billion arms package for Taiwan on hold, calling it a "very good negotiating chip" in talks with China. The decision, announced after his summit with President Xi in Beijing, gives Beijing leverage to delay or block the weapons sales entirely.

China's state media immediately seized on Trump's comments, sending messages to Taiwan that the United States cannot be relied on for defense. A Chinese defense ministry spokesman said security "cannot be bought with military purchases" and accused Taiwan of being a "pawn." Analysts say Xi Jinping has already succeeded in educating Trump on Taiwan's supposed dangers.

The timing coincides with significant US-China business deals. China agreed to purchase at least $17 billion per year of US agricultural products through 2028 and has already committed to ordering 200 Boeing planes. Taiwanese analysts suggest China could respond to a weapons suspension by accelerating these purchases.

A prolonged hold on the arms package, especially if shaped by Beijing's objections, would raise serious concerns about the reliability of US deterrence. Taiwan's opposition party has already declared the Trump-Xi summit a "turning point" that leaves the island "distrusted by Beijing, unable to rely on Washington."