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Monday, June 16, 2025

Trump-Xi Call Focused on Trade, Leaves Taiwan Policy Largely Unchanged, Analysts Say

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What Really Happened in the Trump-Xi Call?

The recent phone conversation between former U.S. President Donald Trump and Chinese President Xi Jinping has reignited global speculation about the U.S.-China relationship, particularly concerning trade disputes, diplomatic alignment, and the Taiwan Strait tensions. However, according to foreign policy analysts, Taiwan was not the central issue during the call and was only touched upon indirectly, if at all.

This call is especially significant given Trump’s continued influence in Republican politics and the potential for a political comeback in the 2024 U.S. election cycle. But the primary focus, analysts suggest, was trade tensions, supply chain vulnerabilities, and economic decoupling, rather than direct geopolitical flashpoints like Taiwan or the South China Sea.


🔍 Original Insights: Why Taiwan Wasn’t the Focus

Several Asia-Pacific analysts believe this diplomatic gesture was designed to explore economic recalibration and ease bilateral tensions, particularly after years of tariff wars and the post-pandemic supply chain crisis.

Key reasons Taiwan wasn’t a main topic include:

  1. Election Positioning: Trump is known to be a transactional politician. Engaging with Xi on economic issues might be part of building a narrative on “restoring tough-but-working” U.S.-China relations, especially as he eyes the 2024 elections. Taiwan, being a complex defense and sovereignty issue, doesn’t play well as an economic achievement.
  2. Xi’s Own Priorities: From China’s side, economic stability remains a major concern in 2025 amid a slowing property sector and reduced global demand for Chinese exports. Analysts argue Xi likely wanted to use the call to demonstrate China’s readiness for pragmatic talks, not confrontational politics over Taiwan.
  3. Backchannel Diplomacy Already Active on Taiwan: Washington has already established military and diplomatic backchannels related to Taiwan. These are often handled by the Department of Defense or the National Security Council, rather than direct presidential diplomacy unless there’s a crisis.

🧠 Analyst Commentary: What This Means for Taiwan

“Taiwan should not read too much into the absence of direct commentary. No mention doesn’t mean no concern. This is a sign that both sides are keeping the Taiwan issue in a holding pattern to avoid escalation during sensitive political timelines,” said Dr. Emily Chen, a senior fellow at the Taiwan Institute of Strategic Studies.

“The reality is, any major shift in Taiwan policy from either Washington or Beijing would likely trigger global headlines — and markets don’t want volatility right now,” noted Alex Bowman, a geopolitical analyst at Eurasia Group.


🌐 Wider Geopolitical Context

  • Biden administration’s current position on Taiwan remains strategic ambiguity, consistent with decades-old U.S. policy.
  • China’s military posture in the Taiwan Strait has remained aggressive, though no major provocations have been reported in the wake of the Trump-Xi call.
  • Taiwanese leadership, including President Lai Ching-te, has made no official statement on the Trump-Xi communication, possibly to avoid drawing further attention to the call’s implications.

📊 Global Reactions

  • Japan and South Korea, key U.S. allies in Asia, welcomed any signs of U.S.-China de-escalation but emphasized the need for continued commitment to Taiwan’s defense.
  • Markets responded positively, with the Dow Jones and Shanghai Composite seeing minor gains amid expectations of resumed U.S.-China economic dialogue.
  • ASEAN leaders noted the development but remained neutral, urging “respect for international law and peaceful resolution of disputes.”

FAQs

Was Taiwan mentioned in the Trump-Xi call?

Official summaries suggest Taiwan was not a main topic, though it may have been referenced indirectly in context to regional security.

What was the main focus of the call?

The primary focus was trade relations, tariff policies, and future economic cooperation between the U.S. and China.

Does this mean the U.S. is stepping back from its support for Taiwan?

No. U.S. support for Taiwan remains unchanged, and the defense policy continues under the Taiwan Relations Act.

Is China softening its stance on Taiwan?

Not necessarily. Xi may be focusing more on economic issues for now, but Taiwan remains a “core interest” for China.

Will this call affect Taiwan’s upcoming defense deals with the U.S.?

Unlikely. Most defense contracts and support packages are managed through the Department of Defense, not via presidential diplomacy.

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