Positive outlook aside, Xi-Trump call points to Taiwan, critical minerals as thorny issues

How US handles Taiwan arms sales key to momentum ahead of meeting: Analysts

- Michelle Ng China Correspondent Aw Cheng Wei China Correspondent

US President Donald Trump and Chinese President Xi Jinping leaving their meeting in Busan in October 2025. For Beijing, the Taiwan issue has taken on renewed sensitivity following Washington's announcement in December 2025 of its largest-ever arms sales package to the island.

(PHOTO: REUTERS)

Feb 4 has set a positive tone for Sino-US ties ahead of the leaders’ summit in April, but thorny issues regarding Taiwan and rare earths remain.

While Mr Xi spoke of advancing towards “win-win cooperation” and Mr Trump described the conversation as “all very positive”, the Chinese President also emphasised that Taiwan is the most important issue in China-US relations and China “will never allow Taiwan to be separated”, reiterating its stance on Taiwan being part of its territory.

After the call, Washington announced plans to rally allies into a preferential trade bloc for critical minerals in an effort to loosen China’s grip on materials crucial to advanced manufacturing.

These two issues have previously emerged as key choke points in China-US relations.

For Beijing, the Taiwan issue has taken on renewed sensitivity following Washington’s announcement in December 2025 of its largest-ever arms sales package to the island, with the prospect of further sales heightening Chinese concerns.

Chinese analysts told The Straits Times that Beijing used the Feb 4 call to send a clear signal that how the US handles arms sales and other high-level interactions with Taiwan will be critical to sustaining momentum leading up to the leaders’ April meeting in Beijing.

During the call, which reportedly lasted more than 1½ hours, Mr Xi called on the US to handle arms sales to Taiwan “with prudence”, according to a readout from China’s Foreign Ministry.