Why Trump Is Using Taiwan As A Bargaining Chip For Xi Jinping Visit

Why Trump Is Using Taiwan As A Bargaining Chip For Xi Jinping Visit

Taiwan is discovering exactly what it means to be a "negotiating chip" in a transactional White House.

If you want to know how serious Donald Trump is about his upcoming September summit with Chinese President Xi Jinping, look at what isn't happening in Taipei. There is no congratulatory phone call scheduled between Trump and Taiwanese President Lai Ching-te. There are no fresh announcements regarding a stalled 14 billion dollar American weapons package.

Instead, there's silence from Washington. It's a calculated, deliberate quiet designed to keep Beijing happy before Xi lands in the US capital. For anyone who thinks American foreign policy is driven by rigid ideological commitments, this moment is a cold reality check. Taiwan isn't off the table—it's right in the middle of it.

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The Cold Shoulder To Taipei

Back in 2016, a newly elected Trump shocked the global diplomatic core by picking up the phone to speak with Tsai Ing-wen, Taiwan's leader at the time. It shattered decades of diplomatic protocol in a single evening. Beijing threw a fit, and the tone for a chaotic first term was set.

Fast forward to today. Trump has publicly teased that he'd be open to speaking with the person "running" the island. Yet, behind the scenes, the story is entirely different. Insiders close to the administration confirm there's zero momentum toward setting up a call with current Taiwanese President Lai Ching-te.

The reason is simple. White House officials know a call with Lai would completely torpedo the delicate detente achieved during Trump's visit to Beijing. Xi simply wouldn't show up for the September summit if Trump extended that kind of legitimacy to Taipei. Diplomatic experts put the likelihood of a Trump-Lai call at less than 10 percent. Trump wants the meeting with Xi, and avoiding the phone is the price of admission.


Holding Up The Weapons

It's not just phone calls that are on ice. The real meat of the issue involves 14 billion dollars in advanced US military hardware. This package isn't small change—it includes heavy-hitting defense tech like PAC-3 Patriot missile interceptors and National Advanced Surface-to-Air Missile Systems, or NASAMS.

Congress already green-lit this package, and the defense contractors are ready to sign. All it takes is a go-ahead from the president. But Trump is keeping the entire deal in limbo.

Shortly after returning from his high-stakes trip to Beijing, Trump openly told reporters that he discussed the weapons proposal in great detail with Xi. He flat out called the 14 billion dollar package a "very good negotiating chip." He explicitly noted that moving forward with it depends on how China behaves.

This transactional approach has sent shockwaves through Taipei. Taiwan's top diplomat in Washington, Alexander Yui, has been trying to steady nerves publicly, insisting that US policy remains unchanged and that Taiwan respects Washington's timing. But behind closed doors, the anxiety is real. When you're told your national survival tools are a bargaining chip, you tend to lose sleep.


History Repeats Itself In The Oval Office

Trump isn't the first American leader to pause weapons to China's neighbor to secure a diplomatic win. History shows this is a recurring play in Washington's playbook.

  • George W. Bush froze arms sales from 2007 to 2008 while trying to manage complex ties with Beijing.
  • Barack Obama enacted a massive freeze on weapon approvals from 2011 all the way to 2015.

Critics from the defense sector argue this strategy rests on a fundamentally flawed premise. Rupert Hammond-Chambers, president of the US-Taiwan Business Council, points out that treating arms sales as a concession won't suddenly make Beijing alter its calculations on trade deals, Boeing aircraft orders, or agricultural purchases. Beijing has learned that simply offering the promise of future talks is enough to make Washington freeze defense shipments.

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What Happens After Xi Leaves

So, is Taiwan permanently sidelined? Not necessarily. This looks like a tactical delay rather than a permanent abandonment.

Regional analysts point out that the timing of these announcements has always been tethered to the US-China calendar. The administration already approved an 11 billion dollar package back in December, which delivered HIMARS and artillery pieces to the island.

The prevailing expectation among regional analysts is that the 14 billion dollar package will eventually find its way out of the bureaucratic deep freeze—but only after Xi Jinping completes his Washington visit and flies home. Furthermore, because the backlog for manufacturing high-end American weapons is already so massive, a delay of a few months won't actually change when the hardware lands on Taiwanese soil. For instance, F-16 fighter jets ordered by Taipei back in 2019 aren't expected to be fully delivered until late 2027 anyway. New orders being paused right now represent deliveries that wouldn't happen until the mid-2030s.

Taiwanese President Lai Ching-te is pushing back against the squeeze by urging his own parliament to stop cutting local defense spending. He's trying to pass special defense budgets for coastal attack drones and surveillance tech to show that Taipei can help carry its own weight.

For corporate strategists, defense contractors, and geopolitical analysts, the next moves are clear. Do not expect any sudden military aid announcements or high-level diplomatic pleasantries between Washington and Taipei before late autumn. Track the upcoming September summit carefully; the real trade-offs on tariffs, chip manufacturing investments, and regional security lines will happen there, with Taiwan serving as the ultimate leverage.

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Hana Adams

With a background in both technology and communication, Hana Adams excels at explaining complex digital trends to everyday readers.