Donald Trump and Xi Jinping met on Thursday in South Korea, where they engaged in discussions primarily focused on U.S.-China trade tensions. Interestingly though, the time-honored bone of contention – Taiwan – didn’t make it on their agendas. This surprisingly large omission has raised eyebrows. The U.S.-China-Taiwan triangle The issue of Taiwan is complicated. Beijing views Taiwan as part of its territory, while Taiwan operates as an independent island with its own government.
In an interview with CBS’s 60 Minutes, Trump expressed confidence that China would refrain from taking any military action against Taiwan while he remains in office. His statement would be interpreted as a promise to uphold the current status quo about how Taiwan is governed. Yet, there was no instant or pronounced backlash from capital markets after his remarks on Taiwan.
Although discussions between Trump and Xi focused exclusively on trade, the lack of discussion over Taiwan is particularly striking. Both domestic and international analysts have argued that the Taiwan issue represented one of the most controversial bilateral flashpoints between the two countries. This is Trump’s promise to the public, and it is a source of public comfort. This is a positive development, particularly for stakeholders concerned about rising tensions across the peninsula.
Taiwan’s financial market appeared relatively unfazed by the news. On the day the talks were announced, its benchmark index surged over 0.1%. That barely perceptible blip upward indicates one thing—investors’ nerves are not getting shaken by every Trump Tweet. Second, without admitting it, they must be disappointed by the joint summit declaration’s silence on Taiwan.
Trump’s comments have reignited discussions about U.S.-China relations and how they will impact Taiwan’s future. The current administration’s policies toward Taiwan have evolved over time, particularly in light of China’s increasing assertiveness in the region. Analysts have a close watch on such dynamics. Even slight changes in policy would have a disproportionate effect on stability in East Asia.
The intricacies of the situation surrounding Taiwan still present major issues to the United States as well as China. Taiwan’s government maintains its autonomy and seeks international recognition, while Beijing insists on its claim over the island. During Trump’s administration, the U.S. vigorously pursued policies to strengthen Taiwan. This support tilted the already precarious balance of power in the region.
