In a recent interview, President Trump emphasized the potential consequences for China regarding Taiwan, despite not discussing the issue during his talks with Xi Jinping, following a temporary trade truce. He highlighted the importance of America’s military strength as a deterrent against aggressive moves by Beijing, reinforcing the U.S. policy of strategic ambiguity towards Taiwan, which plays a critical role in global semiconductor production. Heightened Chinese military activities around Taiwan have raised regional tensions, while ongoing maritime disputes in the South China Sea further complicate U.S.-China relations. Trump’s comments signal a delicate balancing act between maintaining economic cooperation and ensuring military preparedness, underscoring the significance of stability in the Indo-Pacific for both regional security and international economic systems.