Speaking at the Great Hall of the People, Xi described Taiwan as the most sensitive issue in China-US relations and cautioned that any mistakes over the self-ruled island could place bilateral ties in a “highly perilous situation”.

“The Taiwan question is the most important issue in China-US relations,” Xi said, according to Chinese state media. “If mishandled, the two nations could collide or even come into conflict.”

Trump, who earlier praised Xi as a “great leader” and “friend”, expressed optimism about future relations and said the partnership between Washington and Beijing would become “better than ever before”.

Taiwan dominated the opening exchanges between the two presidents. China claims Taiwan as part of its territory and has repeatedly vowed to reunify with the island, by force if necessary. The United States officially recognises Beijing but is legally bound to provide Taiwan with defensive weapons.

Earlier this week, Trump said he intended to discuss US arms sales to Taiwan directly with Xi, marking a notable shift from longstanding American policy.

Following Xi’s remarks, Taiwan said China remained the primary threat to regional peace and stability, while reaffirming that Washington had repeatedly expressed support for the island.

Analysts described Xi’s language as unusually direct, with observers saying Beijing wanted to underline that Taiwan remains the biggest potential flashpoint between the two powers.

The summit also comes amid ongoing tensions over trade, technology restrictions and the Iran conflict. Washington and Beijing have spent much of 2025 locked in an escalating trade confrontation after Trump imposed sweeping tariffs that triggered retaliatory measures from China.

Ahead of the summit, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in South Korea in an effort to preserve a fragile tariff truce reached last year.

Trump is also seeking business agreements in agriculture, aviation and technology during the visit. Several major American executives joined his delegation, including Elon Musk and Jensen Huang.

Xi later told the business delegation that China’s doors would continue opening wider to foreign investment and promised stronger opportunities for American firms operating in the country.

After their formal talks, Trump and Xi visited the historic Temple of Heaven before returning to Beijing for further discussions and a state banquet.