As Donald Trump prepares to meet Xi Jinping in Beijing, Taiwan is expected to become a major focus alongside the Iran war and trade tensions. Trump said he plans to discuss U.S. arms sales to Taiwan with Xi, fuelling speculation Washington could soften its Taiwan posture amid reports of a possible $1 trillion Chinese investment package in the United States. Analysts argue China is unlikely to risk an invasion of Taiwan due to the enormous economic fallout, including threats to exports, semiconductor supply chains and energy imports. Taiwan produces most of the world’s advanced chips, while China remains heavily dependent on trade with the U.S., Japan, South Korea and Taiwan itself.
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