Trump seeks to steady Xi truce while reassuring Japan amid Taiwan tensions

US President Donald Trump held back-to-back calls with the leaders of China and Japan, as escalating tensions over Taiwan threaten to derail his weeks-old trade truce with Beijing.  

Trump’s hour-long conversation with President Xi Jinping on Monday marked their first contact since Japan’s new prime minister enraged Beijing by suggesting her nation’s troops could be drawn into a Taiwan crisis. Xi told his US counterpart Taiwan’s return to China was an “integral part of the postwar international order,” in a call the Chinese Foreign Ministry later said was “initiated by the US.” 

“I just had a very good telephone call with President Xi,” Trump wrote on Truth Social, without making mention of Taiwan. The two leaders discussed Ukraine and elements of the pact struck in South Korea, he added: “Now we can set our sights on the big picture.”  

 

Hours later, Japanese Prime Minister Sanae Takaichi told reporters Trump reached out to reaffirm ties with Tokyo and update her on the situation with China. “We’ve been able to further confirm the close relationship between the US and Japan,” she said. “He told me I’m a very close friend and that I could call him any time.”  

Stocks in Hong Kong and China cheered Trump’s efforts to prevent ties spiraling, with a tech rally leading a rise in shares. 

The row between Japan and China over Taiwan — the self-ruled island Beijing considers its territory — has injected fresh uncertainty into the Trump-Xi relationship. Any hint Washington is siding with Tokyo could imperil a truce that saw the US lower fentanyl-related tariffs on Chinese goods and Beijing agree to suspend certain restrictions on the export of rare earths.  

Trump’s decision to contact both Xi and Takaichi shows the delicate balancing act he now faces. The Republican leader must reassure America’s top ally of his commitment in the face of economic reprisals and tough rhetoric from Beijing, while also steadying ties with Xi before a visit to China he confirmed is planned for April.  

That equilibrium could be hard to maintain, with little off-ramp in sight for the China-Japan spat. 

“China often wants Washington to handle its friction with US allies,” said Rorry Daniels, managing director at the Asia Society Policy Institute, adding that Beijing views America’s allies as “subordinate to US direction.”  

It’s unclear how Trump — who likes to play peacemaker — could meaningfully intervene. China’s position is Takaichi must recant her comments. For Japan’s new leader, bowing to Beijing would invite political blowback at home, where she has support around the 70% mark in opinion polls. 

Adding to the volatility, China is pressuring countries to pick sides. In a bid to rally support, Beijing has written a letter to the United Nations accusing Japan of violating international law by suggesting its armed forces could be drawn into a Taiwan conflict. 

Investors in Asia are already grappling with uncertainty after China issued a travel advisory against Japan, suspended the screening of some Japanese films and banned the import of Japanese seafood. China has also announced patrols in the East China Sea, while Japan reaffirmed plans to deploy missiles to an area near Taiwan. 

Trump’s flurry of diplomacy comes as the US and China’s trade teams hash out the final details of their truce. Treasury Secretary Scott Bessent said earlier this month that a rare earths deal between the nations would “hopefully” be completed by Thanksgiving, though talks on key implementation details continue. 

Trump said he spoke with Xi about purchases of soybeans and other farm products, as well as curbing shipments of illegal fentanyl — key components of their broad trade truce.   

Xi framed his view of Taiwan’s status in stark historical terms on the call with Trump and invoked their countries’ wartime alliance against fascism. Trump acknowledged China’s wartime contributions and said the US “understands how important the Taiwan question is to China,” according to the Chinese readout.  

Taiwan welcomed Trump’s decision not to publicly reference the island after his call with Xi, with one government official calling it the “best result” as it indicated the global chip hub wasn’t part of the trade truce. 

Taiwan’s return to the agenda, after being absent from the leaders’ meeting last month, should come as no surprise: The island is a longstanding flashpoint in bilateral ties. Beijing wants Washington to officially declare it “opposes” rather than “does not support” Taiwan independence, Bloomberg previously reported.  

Before the truce, Secretary of State Marco Rubio pushed back against concerns Trump would change US policy on Taiwan in exchange for a trade deal. “No one is contemplating that,” he said.  

Trump also offered reassurance to Taiwan this month, telling CBS News that Xi “understands the answer to that” when asked if US forces would defend Taiwan in the event of a Chinese attack.  

Still, going forward the US will want to avoid any steps that would draw the ire of Beijing, including new export controls, said Wendy Cutler, senior vice president at the Asia Society Policy Institute. 

“With Trump’s trip to China agreed upon for April during the call, we should expect both sides to work hard to keep the truce intact and even build on it in the coming months,” she added. 

--With assistance from Michelle Jamrisko, Foster Wong, Jing Li, Meghashyam Mali, Nectar Gan, Charlotte Yang and James Mayger.