world news | May 12, 2026

US-China Tensions Rise as Trump Signals Shift on Taiwan Amid Semiconductor Deal Controversy

WASHINGTON (AP) — President Donald Trump's recent return to the White House has sparked renewed uncertainty about US policy toward Taiwan, with analysts warning that his ambiguous rhetoric could destabilize relations ahead of this week's high-stakes summit with Chinese President Xi Jinping.

Despite authorizing an $11 billion arms package to Taiwan last December—the largest semiconductor-related sale ever—Trump has stalled on implementation and publicly criticized the deal, raising concerns in Taipei about US commitment. Meanwhile, he has pressured Taiwan to boost semiconductor production in the US and purchase American liquefied natural gas, further complicating cross-strait dynamics.

Experts highlight growing anxiety in Taiwan as Trump's contradictory messages—from praising the island's democratic resilience to questioning its strategic importance—create diplomatic whiplash. "The best outcome for Taiwan would be minimal public discussion of its status," noted one analyst, underscoring fears that even subtle shifts in US messaging could embolden Beijing.

The summit, where Trump is expected to test Xi's willingness to ease restrictions on Taiwan, now faces heightened unpredictability. With both sides locked in a delicate balancing act over semiconductor supply chains and regional influence, the world watches closely to see if diplomacy can outpace escalating tensions.