Beijing has warned Washington that recent U.S. weapons deals with Taiwan could jeopardize a planned summit between Chinese President Xi Jinping and U.S. President Donald Trump.

The warning adds to long-standing tensions between the United States and China over Taiwan, a self-governed island that Beijing considers a breakaway province. U.S. arms sales to Taiwan have historically been a sensitive issue for China and have often prompted increased diplomatic pressure.

The possibility that the weapons deals could lead to the cancellation of high-level talks highlights the risk of further strain in U.S.-China relations. The report was published by CryptoBriefing.

Market pricing reflects the uncertainty, with confidence declining that Xi will visit the United States before 2027. The probability of a visit before September 24 has also dropped notably, indicating heightened diplomatic tensions. Market participants appear to view the arms sales as a significant obstacle to improving relations between Washington and Beijing.

Attention is now focused on official statements from Beijing or Washington that could either escalate or ease the tensions. Observers will also monitor changes in diplomatic engagement and any further announcements concerning arms sales to Taiwan.

Responses from Xi Jinping and Donald Trump may offer further indications of whether the summit will proceed or be postponed. Any confirmation or denial of Xi’s travel plans could influence market expectations.