Washington — US President Donald Trump has withheld approval of a proposed $400 million military aid package to Taiwan as his administration seeks to strike a broader trade agreement with China, according to a report by The Washington Post.
The move comes as Trump aims for a high-level summit deal with Chinese President Xi Jinping. Sources cited by the newspaper said the administration is generally seeking to ease tensions with Beijing.
The timing of the report is significant, as Trump is expected to speak with Xi later today. The White House, however, clarified that the decision on Taiwan aid is not final and remains subject to review.
Alongside trade negotiations, discussions between the two leaders are expected to address TikTok. Trump confirmed earlier this week that a framework deal had been reached to separate the app from its Chinese parent, ByteDance, in order to prevent a ban in the United States. “We have a deal on TikTok. I’m going to speak to President Xi on Friday to confirm everything,” Trump told reporters outside the White House.
The issue stems from a law passed under former President Joe Biden, requiring ByteDance to divest TikTok or face a US ban over national security concerns. The law was set to take effect in January, but Trump extended the deadline to allow negotiations.
US Treasury Secretary Scott Bessent announced on September 14 in Madrid that Washington and Beijing had agreed on a “framework” to keep TikTok operational in the US. Trade teams from both countries also held recent talks in Madrid, following earlier rounds in Switzerland, Britain, and Sweden.
Chinese Vice Minister of Commerce Li Chenggang said the discussions covered TikTok and related issues, with both sides reaching a preliminary consensus to resolve disputes cooperatively, reduce investment barriers, and strengthen trade relations.
Meanwhile, Taiwan remains a flashpoint. China regards the self-governing island as part of its territory and has repeatedly vowed to unify with Taiwan, by force if necessary.
