President Donald Trump called a pending $14 billion arms sale to Taiwan “a very good negotiating chip” with China. He said it after his Beijing summit with Xi Jinping, and some members of Congress did not like it. Legis1 reported that the remark has raised concerns on Capitol Hill about U.S. security commitments to Taiwan.
The comment fits a wider change in tone. The second Trump administration is leaning on trade talks and direct meetings with Xi while keeping its military deterrence in the Indo-Pacific. Its language now centers on a “balance of power” and a “stable peace” with China.
What the strategy documents say
The National Security Strategy says the administration will “win the economic future” in Asia, partly through “a genuinely mutually advantageous economic relationship with Beijing.” The National Defense Strategy says “President Trump seeks a stable peace, fair trade, and respectful relations with China.” Neither document names China as a competitor.
Summits and new boards
Trump and Xi met in Busan on Oct. 30, 2025, and agreed to set up two tracks for regular cabinet-level contact. At their May summit in Beijing they pledged to “build a constructive relationship of strategic stability.” The two governments also agreed to create a Board of Trade, which will manage trade in non-sensitive goods, and a Board of Investment, a government-to-government forum for investment disputes.
U.S. Trade Representative Jamieson Greer has described the economic approach as “managed trade.” Beijing’s follow-through on tariff and export control agreements has been uneven, according to Legis1, and senior trade talks have grown to cover export controls.
Chips and Congress
The administration has let Nvidia export H200 chips to China. In return, the U.S. government collects 25% of the proceeds from those sales. That arrangement, along with other technology exports, has drawn scrutiny in Congress and prompted bills to limit sales of advanced chips and chipmaking equipment to China.
The House has reauthorized the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. Lawmakers are also weighing legislation on export controls, data security and the ties between the Chinese government and Chinese companies. The Consolidated Appropriations Act sets aside no less than $400 million for the Countering PRC Influence Fund.
Xi is expected to make a state visit to the United States this fall.
