Move FM Global News

WASHINGTON, D.C.: U.S. President Donald Trump said he expects to strike a “fair trade deal” with Chinese President Xi Jinping, while downplaying the risk of a military confrontation over Taiwan ahead of a high-stakes meeting between the two leaders next week.

Trump told reporters he believed China had no intention of invading Taiwan, though he acknowledged the issue would likely feature in talks with Xi on the sidelines of an economic conference in South Korea.

“China doesn’t want to do that,” Trump said when asked about a potential invasion. “We have the best of everything, and nobody is going to mess with that … I think we’ll end up with a very strong trade deal. Both of us will be happy.”

The remarks came as tensions between Washington and Beijing linger over tariffs, technology restrictions, and market access. Later in the day, Trump’s top trade negotiator, U.S. Trade Representative Jamieson Greer, took a far tougher stance, accusing Beijing of “economic coercion” and warning of potential retaliation.

“Attempts at intimidation will not stop the United States from rebuilding its shipbuilding base and responding appropriately to China’s targeting of critical industrial sectors for dominance,” Greer said in a statement.

His comments followed Chinese sanctions against U.S.-linked units of South Korean shipbuilder Hanwha Ocean (042660.KS), which officials in Seoul said could hinder joint shipbuilding projects between South Korea and the U.S.

Trump’s meeting with Xi will be their first in months. It comes amid a global trade war that has seen both countries impose new tariffs on hundreds of billions of dollars in goods. Trump told reporters he expected the two sides to discuss “a lot of things,” including Taiwan, but declined to elaborate.

“We’re going to be talking about a lot of things. I assume that will be one of them, but I’m not going to talk about it now,” he said.

Earlier in the day, Trump met Australian Prime Minister Anthony Albanese at the White House, where they signed a critical minerals agreement designed to reduce reliance on Chinese supply chains. Trump also vowed to accelerate nuclear submarine deliveries to Australia as part of the AUKUS defense pact.

In Taipei, Wang Liang-yu, head of the Taiwan Foreign Ministry’s North American Affairs Department, said Taiwan-U.S. communication remains smooth and that the U.S. has “repeatedly reiterated its support for Taiwan” since Trump took office.

“The foreign ministry will continue to closely pay attention to relevant developments and will maintain communication with the U.S. side to ensure Taiwan-U.S. relations continue to deepen in a stable way and that our interests can really be guaranteed,” Wang said.

Beijing continues to ramp up military and diplomatic pressure on Taiwan, which it claims as its own territory. The U.S., while not recognizing Taiwan diplomatically, remains its biggest arms supplier and key international backer, a position that regularly provokes criticism from China.