Readouts of Xi-Trump's First Call of 2026, Xi Urges Trump to Handle Taiwan Arms Sales with Caution
China’s readout
On the evening of February 4, Chinese President Xi Jinping held a phone call with U.S. President Donald Trump. Xi said that over the past year, the two sides had maintained good communication and met successfully in Busan, providing strategic guidance for the direction of China–U.S. relations — a development welcomed by the peoples of both countries and the international community. Xi said he attaches great importance to China–U.S. relations and expressed his willingness, in the new year, to continue working with President Trump to steer the bilateral relationship through challenges and keep it on a steady course, while delivering more major and positive outcomes.
Xi noted that both sides have their respective concerns. China means what it says and follows through on its commitments. As long as both sides move toward each other in a spirit of equality, mutual respect, and reciprocity, solutions to each other’s concerns can be found. He pointed out that this year both countries have important agendas: China is beginning its “15th Five-Year Plan,” while the United States will mark its 250th anniversary. China and the United States will respectively host the APEC Economic Leaders’ Meeting and the G20 Summit. Xi said the two sides should act on the consensus already reached, strengthen dialogue and communication, properly manage differences, expand practical cooperation, and build trust step by step through concrete actions, so as to chart the right path for China–U.S. relations and make 2026 a year in which the two major countries move toward mutual respect, peaceful coexistence, and win-win cooperation.
Xi emphasized that the Taiwan issue is the most important issue in China–U.S. relations. Taiwan is part of China’s territory, and China must safeguard its sovereignty and territorial integrity. Taiwan will never be allowed to separate from China. He urged the U.S. side to handle arms sales to Taiwan with great caution.
Trump said that both the United States and China are great countries, and that the China–U.S. relationship is the most important bilateral relationship in the world. He said he has a strong relationship with President Xi and holds him in high respect. Under their leadership, the two countries have had positive interactions in areas such as trade and economic cooperation. Trump said he welcomes China’s success and that the United States is willing to strengthen cooperation with China to advance bilateral relations. He said he takes China’s concerns on the Taiwan issue seriously and is willing to maintain communication with China, and that during his term he hopes to keep China–U.S. relations stable and constructive.
US read out
I have just completed an excellent telephone conversation with President Xi, of China. It was a long and thorough call, where many important subjects were discussed, including Trade, Military, the April trip that I will be making to China (which I very much look forward to!), Taiwan, the War between Russia/Ukraine, the current situation with Iran, the purchase of Oil and Gas by China from the United States, the consideration by China of the purchase of additional Agricultural products including lifting the Soybean count to 20 Million Tons for the current season (They have committed to 25 Million Tons for next season!), Airplane engine deliveries, and numerous other subjects, all very positive! The relationship with China, and my personal relationship with President Xi, is an extremely good one, and we both realize how important it is to keep it that way. I believe that there will be many positive results achieved over the next three years of my Presidency having to do with President Xi, and the People’s Republic of China! PRESIDENT DONALD J. TRUMP
on January 15, Taiwan’s Vice Defense Minister Hsu Szu-chien, speaking to reporters in Taipei after a weekly cabinet meeting, said that four additional arms packages for Taiwan were already in the pipeline and had yet to be formally notified to the U.S. Congress. This would be the largest arms sale to Taiwan in history.
Recent Developments on Taiwan-Related Arms Procurement
Political wrangling within Taiwan’s Legislative Yuan has continued for months over the Democratic Progressive Party’s (DPP) proposed NT$1.25 trillion special defense procurement budget. The proposal was rejected roughly ten times by the two major opposition parties and remained stalled until the final day of the current legislative session on January 30. On that day, the Taiwan People’s Party (TPP) introduced an alternative package of approximately NT$400 billion, roughly in line with the size of the arms sales previously announced by the United States (around US$10 billion), which was quickly passed by the legislature. However, this version subsequently drew strong dissatisfaction from both the DPP and the U.S. side.
The DPP’s criticism focused on three main areas.
First, while the TPP proposal retained funding for key platforms such as HIMARS and self-propelled artillery, it significantly reduced funding for C5ISR systems (command, control, communications, computers, intelligence, surveillance, and reconnaissance), which the DPP argues would undermine overall operational coordination.
Second, the budget failed to adequately account for ammunition stockpiles, logistics support, maintenance, and sustainment costs, raising concerns about the long-term sustainability of Taiwan’s combat capabilities.
Third, the NT$400 billion total did not factor in potential exchange-rate fluctuations, which could further erode actual procurement capacity.
Members of the U.S. Congress also expressed dissatisfaction with the budget reduction, with criticism emerging on a bipartisan basis. Senate Armed Services Committee Chairman Roger Wicker publicly stated that he was “deeply disappointed” by the opposition parties’ decision to sharply cut President Lai Ching-te’s proposed defense budget, noting that the original proposal was intended to fund urgently needed weapons systems. Against the backdrop of rising Chinese military pressure, he urged Taiwan’s legislature to reconsider its decision.