Speaking to reporters in Taipei, Lai said Taiwan’s efforts to safeguard its security, democratic system and way of life should not be viewed as a provocation toward Beijing. He reiterated that the island rejects unification under the rule of the Chinese Communist Party and remains committed to enhancing its self-defense capabilities.

The request comes as Washington reviews the proposed arms package, which includes advanced U.S.-developed weapons systems. U.S. Secretary of State Marco Rubio said earlier this month that the proposal remained under consideration, while American officials have also assessed the impact of overseas military commitments on available weapons stockpiles.

The United States maintains unofficial relations with Taiwan and is legally obligated under domestic legislation to provide the island with defensive capabilities, despite formally recognizing Beijing as the sole government of China. Arms sales to Taiwan remain one of the most contentious issues in U.S.-China relations.

Responding to Lai’s remarks, Chinese Foreign Ministry spokesperson Lin Jian said attempts to pursue independence through U.S. support or military means were destined to fail. He accused Taiwan’s leadership of escalating regional tensions and dismissed Taipei’s defense initiatives.

China claims Taiwan as part of its territory and has repeatedly stated that it reserves the right to use force to bring the island under its control. Taiwan rejects Beijing’s sovereignty claims and maintains that its future should be determined by its people.

Lai’s administration has pledged to raise defense spending above 3 percent of gross domestic product this year. The government has proposed a broader defense procurement plan worth approximately NT$1.25 trillion ($40 billion), including purchases of American weaponry, domestically produced drones and other military equipment.

However, the proposal has faced resistance in Taiwan’s legislature. Opposition parties, which hold a majority of seats, approved a reduced special defense budget last month worth about $25 billion, cutting roughly one-third of the funding requested by the government.

In a move aimed at addressing capability gaps, Taiwan’s cabinet on Thursday approved an additional NT$210 billion ($6.6 billion) for indigenous unmanned systems. The defense ministry has argued that the reduced budget approved by lawmakers would be insufficient to fully achieve planned force modernization goals.

Lai also accused China of increasing pressure on neighboring countries, including Japan and the Philippines, amid maritime disputes in waters east of Taiwan. His comments followed recent announcements by Tokyo and Manila that they would begin formal negotiations to delimit maritime boundaries between their exclusive economic zones and continental shelves.

China has opposed those talks and continues to assert broad claims across the East and South China Seas. Lai said Beijing’s military activities and coercive actions in the Taiwan Strait and wider Indo-Pacific region were expanding, raising concerns among regional governments.

Japan and the Philippines have strengthened security cooperation in recent years amid shared concerns over China’s maritime claims and growing military presence across disputed waters.

Speaking at a congressional hearing, Cao said foreign military sales to Taiwan had been put on hold while the Pentagon assessed weapons inventories needed for Operation Epic Fury, the U.S. campaign targeting Iran. He said the United States had sufficient stocks but was taking steps to ensure military requirements were fully met before resuming transfers.

“Right now we’re doing a pause in order to make sure we have the munitions we need for Epic Fury,” Cao said, adding that foreign military sales would continue once the administration determined it was appropriate.

The remarks mark the clearest public indication yet that the Iran conflict has affected the timing of U.S. weapons deliveries to Taiwan, which has sought to strengthen its defenses amid rising military pressure from China.

The U.S. State Department and the Pentagon did not immediately comment on Cao’s statement.
Taiwan’s Presidential Office pushed back against suggestions that approved sales were being altered. Presidential Office spokeswoman Karen Kuo said on Friday that Taipei had received no indication Washington intended to revise the arms package.

The reported delay centers on approximately $14 billion in weapons purchases sought by Taiwan, though U.S. officials have not detailed which systems could be affected by the pause.

The development comes as questions persist over President Donald Trump’s approach to Taiwan. While the United States formally recognizes Beijing rather than Taipei, U.S. law requires Washington to provide the self-governed island with defensive weapons.

China, which views Taiwan as part of its territory, has repeatedly opposed U.S. arms sales to the island. A Chinese Foreign Ministry spokesman said on Friday that Beijing’s opposition to such sales remained “consistent, clear and firm.”

Trump also signaled a potential shift in approach ahead of a recent visit to China, saying he would discuss Taiwan arms sales with Chinese President Xi Jinping. Previous U.S. administrations had maintained that decisions on arms transfers to Taiwan were a matter between Washington and Taipei and not subject to consultation with Beijing.

Following the trip, Trump said he had made no commitments to Xi regarding Taiwan and would decide on the proposed sales within a relatively short period.
The pause underscores the competing demands facing U.S. defense planners as Washington balances support for partners in the Indo-Pacific with military commitments stemming from the Iran conflict.

Trump told reporters on Wednesday that he intended to speak with Lai as his administration considers potential arms sales to Taiwan, the self-governed island claimed by China.

A direct conversation between sitting presidents of the United States and Taiwan would be unprecedented since Washington formally switched diplomatic recognition from Taipei to Beijing in 1979 under the “One China” policy framework.

Taiwan’s foreign ministry said Lai remained committed to maintaining stability across the Taiwan Strait and described China as “the disruptor of peace and stability.”

Lai would be “happy to discuss these matters with President Trump,” the ministry said in a statement.
“I’ll speak to him. I speak to everybody,” Trump said, adding that he had held productive discussions with Chinese President Xi Jinping during his visit to Beijing last week.

“We’ll work on that, the Taiwan problem,” Trump said.
The remarks came after Trump suggested that future U.S. arms sales to Taiwan could become part of broader negotiations with Beijing, raising concerns in Taipei over Washington’s long-term security commitments.

Taiwan’s government has since sought to reassure domestic and international audiences that U.S. policy toward the island remains unchanged and that Trump made no commitments to China regarding military support for Taipei.

Taiwan relies heavily on U.S. security backing to deter potential military action from China, which considers the island part of its territory and has repeatedly vowed to bring it under Beijing’s control, by force if necessary.

Taipei has also faced sustained pressure from Washington to increase defense spending and expand investment in American industries as part of closer economic and strategic coordination.

Trump previously disrupted diplomatic convention in 2016 when, as president-elect, he accepted a phone call from then Taiwanese president Tsai Ing-wen, drawing sharp criticism from Beijing and surprising foreign policy officials in both Washington and Asia.

Trump, wrapping up meetings in Beijing before returning to Washington, described ties with China as being in “a good place” and said Xi had congratulated him on recent political and diplomatic successes during their discussions.

The optimistic rhetoric contrasted with persistent tensions between the world’s two largest economies, particularly over Taiwan and the ongoing Iran conflict, which has disrupted global energy markets and intensified geopolitical competition.

Chinese officials said Xi warned Trump during private talks that mishandling the Taiwan issue could push the two powers toward “clashes and even conflicts,” underscoring Beijing’s view that the self-ruled island remains its most sensitive sovereignty concern.

U.S. Secretary of State Marco Rubio said Washington’s policy toward Taiwan remained unchanged and cautioned Beijing against attempting to take the island by force.

“It would be a terrible mistake,” Rubio told NBC News, adding that both sides routinely reiterated their established positions during high-level engagements.
Taiwan has emerged as a growing source of friction in U.S.-China relations amid expanded American arms support for Taipei and increasing Chinese military pressure around the island.

The White House announced an $11 billion weapons package for Taiwan in December, the largest approved for the island, although deliveries have yet to begin.
Trump has also pressed Taiwan to raise defense spending and expand investment in U.S. semiconductor manufacturing, while calling for Taipei to increase purchases of American energy exports.

China has intensified its rhetoric in recent weeks, emphasizing that Taiwan lies at the “core” of its national interests. Analysts in Taiwan said Beijing’s sharper tone reflected growing concern over deepening defense cooperation between Washington and Taipei.

Iran and the closure of the Strait of Hormuz also featured prominently in discussions between Trump and Xi, according to U.S. officials.

Trump said both leaders agreed the strategic waterway should reopen after disruptions linked to the Iran conflict sharply reduced oil shipments and fueled volatility in global energy markets. Before the conflict erupted on Feb. 28, roughly one-fifth of global oil supplies passed through the strait.

Speaking to Fox News, Trump said Xi had privately offered assistance in resolving the conflict and expressed opposition to imposing tolls on vessels crossing Hormuz.

“He’d like to see the Hormuz Strait open,” Trump said, adding that Xi indicated China could consider purchasing more U.S. oil to reduce reliance on Gulf supplies over time.

Beijing has criticized U.S. and Israeli military operations against Iran but also faces economic risks from prolonged instability in the Gulf, given China’s dependence on imported energy and export-driven growth model.

Rubio said administration officials sought to persuade Chinese counterparts that resolving the conflict aligned with Beijing’s economic interests, warning that sustained turmoil could weaken global demand and harm Chinese exports.

Trade and investment were also central to the visit, with the White House signaling before Trump’s arrival that it expected concrete economic outcomes from the trip.

Trump said Xi had indicated China could purchase 200 Boeing aircraft from the United States, while both governments discussed increasing Chinese imports of U.S. agricultural products including soybeans and beef.
The two sides also explored expanding bilateral investment opportunities and establishing a joint trade board aimed at managing commercial disputes, according to the White House.

Chinese Premier Li Qiang emphasized stability and cooperation during meetings with senior American business executives accompanying Trump’s delegation, including Elon Musk, Tim Cook and Jensen Huang.

“China and the United States have been able to maintain frank and smooth dialogue and communication,” Li said, while calling for both sides to safeguard stable bilateral ties amid global uncertainty.

Taiwan’s Foreign Ministry thanked Washington for reaffirming that U.S. policy toward the self-governed island remained unchanged, following remarks by U.S. Secretary of State Marco Rubio during Trump’s state visit to China.In a statement, Taiwanese Foreign Minister Lin Chia-lung expressed appreciation for repeated U.S. statements emphasizing peace and stability across the Taiwan Strait.

The ministry also accused Beijing of continuing military intimidation around the island through regular naval and air operations.“This demonstrates that Beijing is a major risk to current regional peace and stability,” the ministry said.Taiwan has emerged as the central flashpoint in increasingly strained U.S.-China relations, with Beijing claiming the democratically governed island as its territory and refusing to rule out the use of force to achieve unification.

Xi warned Trump during Thursday’s meeting that mishandling Taiwan-related disputes could push bilateral relations into a “dangerous place,” according to Chinese officials familiar with the talks.Rubio later told NBC News that it would be a “terrible mistake” for China to use force against Taiwan, reiterating Washington’s longstanding position supporting the island’s ability to defend itself.

Taiwan National Security Council Secretary-General Joseph Wu endorsed Rubio’s comments in a post on X, stating that Taiwan was determined to “defend the status quo and deter aggression.”Taiwan’s defense ministry said seven Chinese warships were operating around the island during the previous 24 hours, although no Chinese military aircraft were detected.

A senior Taiwanese security official said the island occupied a critical position within the so-called “first island chain,” a strategic arc stretching from Japan through Taiwan to the Philippines that is viewed by Washington and its allies as central to Indo-Pacific security.

Taipei is also closely monitoring whether Beijing increases military deployments following the Trump-Xi summit and ahead of the second anniversary next week of President Lai Ching-te taking office, the official said.China’s Defense Ministry did not immediately respond to requests for comment.

The latest exchanges underscore how Taiwan remains one of the most sensitive and potentially destabilizing issues between Washington and Beijing despite efforts by both governments to stabilize broader ties through diplomacy and trade engagement.

The White House said Trump and Xi agreed during meetings in Beijing that the Strait of Hormuz should remain open and that Iran must not obtain nuclear weapons, as maritime incidents near the strategic waterway intensified pressure on global oil markets.

Trump, speaking in an interview aired Thursday on Fox News, urged Tehran to reach an agreement with Washington after diplomatic efforts to end the conflict stalled.

“I am not going to be much more patient,” Trump said. “They should make a deal.”

The comments came as Iran continued restricting access through the Strait of Hormuz following U.S.-Israeli attacks that began on Feb. 28 and triggered one of the most severe disruptions to global energy flows in decades.

China, Iran’s largest oil customer and a close strategic partner, has emerged as a key diplomatic player in efforts to stabilize the region and restore shipping traffic through the narrow maritime chokepoint, which previously handled about one-fifth of global oil and liquefied natural gas supplies.

The White House said Xi opposed further militarization of the strait and rejected any attempt to impose transit tolls on vessels using the route.

Trump also said Xi assured him China would not provide military equipment to Iran and expressed interest in increasing Chinese purchases of American oil to reduce dependence on Gulf shipping lanes.
On the issue of Iran’s enriched uranium stockpile, Trump suggested securing the material was more politically symbolic than strategically essential.

“I don’t think it’s necessary except from a public relations standpoint,” Trump said during the interview.
Meanwhile, maritime security concerns escalated further after an Indian cargo vessel carrying livestock from Africa to the United Arab Emirates sank off Oman on Wednesday following what security analysts said was likely a missile or drone strike.

India said all 14 crew members were rescued by Oman’s coast guard and condemned the attack.
Separately, the United Kingdom Maritime Trade Operations agency reported that unauthorized personnel boarded a vessel anchored off the UAE port of Fujairah and steered it toward Iranian waters.

Security consultancy Vanguard said the ship was believed to have been seized by Iranian personnel while at anchor.

Despite the disruptions, Iranian authorities indicated they were permitting limited shipping traffic through the strait under negotiated arrangements with selected countries.

Iran’s Revolutionary Guards said 30 vessels had passed through Hormuz since Wednesday evening, although shipping levels remained far below pre-war averages.
Shipping analytics firm Kpler estimated that roughly 10 vessels crossed the strait during the past 24 hours, compared with about 140 vessels on a typical day before the conflict.

Diplomatic efforts to end the war remain stalled after Tehran and Washington rejected each other’s latest proposals last week.

Washington is demanding Iran surrender its stockpile of enriched uranium and halt further enrichment activities, while Tehran is seeking sanctions relief, compensation for war-related damage and recognition of its control over the strait.

A senior U.S. admiral told a Senate committee on Thursday that Iran’s ability to threaten neighboring countries and American interests had been “significantly degraded” by the conflict, though reports indicate Tehran retains substantial missile and drone capabilities.

The conflict has also reverberated across the wider region, including renewed instability involving the Iran-backed group Hezbollah in Lebanon.

The cases involve Dawn Michelle Hunt, a 54-year-old former flight attendant and artist from the Chicago area, and Nelson Wells Jr., a 52-year-old Louisiana native and father of three, whose families say were unknowingly used as “blind mules” to transport narcotics hidden in luggage provided by other individuals.

The appeal places the cases at the intersection of humanitarian diplomacy and increasingly strained U.S.-China relations, as Washington and Beijing remain divided over trade, Taiwan and Iran-related tensions. For Trump, who has frequently highlighted efforts to secure the return of detained Americans abroad, the release of the two prisoners could offer a rare diplomatic breakthrough during a summit expected to yield limited concrete agreements.

Family members said they are attempting to deliver letters directly to Trump ahead of the meeting. Tim Hunt, Dawn Michelle Hunt’s brother, described his sister as highly intelligent and said she had been lured to China through what he characterized as a fraudulent “prize” trip.

According to her family, she was later given purses and a suitcase containing concealed narcotics that she unknowingly agreed to carry on an outbound flight.Wells’ family said he was detained after agreeing to transport another traveler’s suitcase while returning from a trip to China.

The individual allegedly disappeared after airport authorities discovered drugs hidden inside the bag.“I enjoyed serving my country,” Nelson Wells Sr., a U.S. Army veteran, said in remarks released through the family. “Now I just want my country to serve me.”A spokesperson for the U.S. State Department⁠ said Washington is providing consular assistance to both Americans and advocating for their health and welfare, while declining to comment further because of privacy considerations.

China’s foreign ministry said the two Americans were serving sentences for serious drug offenses and that Chinese authorities were handling the cases in accordance with the law while protecting their legitimate rights and health conditions.Advocates involved in the cases said U.S. officials have formally requested humanitarian releases from Chinese authorities, citing worsening medical conditions.

According to family members and advisers, Hunt requires blood transfusions and has declined surgery because of concerns over prison medical care, while Wells suffers from seizures, diabetes and high blood pressure.Beijing-based lawyer James Zimmerman, who is advising the families, said Chinese officials had privately indicated a willingness to consider humanitarian parole if the matter received higher-level political attention from Washington.

The cases follow a prisoner exchange in 2024 in which China and the United States each released three citizens that both governments said had been wrongfully detained after years of diplomatic negotiations.Peter Humphrey, a former prisoner in China who now advises families of foreign detainees, said U.S. embassy officials had increased engagement with Chinese authorities regarding the cases in recent months.

John Kamm, whose San Francisco-based Dui Hua Foundation researches political prisoners in China, said both Americans should be granted humanitarian parole because of their medical conditions. The foundation estimates that around 200 Americans are currently held in detention facilities across China.

The families said public attention to the cases intensified after testimony delivered at a September 2024 hearing of the Congressional-Executive Commission on China, where lawmakers examined the treatment of Americans imprisoned in China.Relatives are also backing legislation introduced by Representative Chris Smith that would expand support mechanisms for families of Americans detained overseas under disputed circumstances.

Tim Hunt said his father died in January before seeing his daughter released, while Wells’ family said his youngest daughter, now 12 and living in Japan, was only six months old when he was arrested.

Trump is scheduled to visit Beijing from Wednesday to Friday for high-level talks with Xi, where the issue of self-governed Taiwan is expected to feature prominently amid ongoing tensions between Washington and Beijing.

China claims Taiwan as part of its territory and has repeatedly refused to renounce the use of force to bring the island under its control. Beijing has increased military pressure on Taiwan in recent years through naval patrols, air incursions and large-scale military exercises around the island.Speaking to reporters in Taipei, Taiwan Foreign Minister Lin Chia-lung said the government remained in close contact with Washington and was carefully monitoring preparations for the Trump-Xi meeting.

“We have also maintained continuous communication with the United States whether through public statements from the U.S. government or through non-public channels. We are confident in the stable development of Taiwan-U.S. relations,” Lin said.“The U.S. government has repeatedly expressed that its Taiwan policy will not change,” he added.

The United States maintains unofficial ties with Taiwan but is legally obligated under the Taiwan Relations Act to provide the island with defensive capabilities. Washington has long viewed peace and stability in the Taiwan Strait as central to Indo-Pacific security.U.S. Secretary of State Marco Rubio said last week that maintaining stability across the Taiwan Strait remained a priority for Washington.

At the same time, the United States has intensified pressure on allies and partners, including Taiwan, to increase military spending in response to growing geopolitical threats and expanding Chinese military capabilities.Taiwan’s opposition-controlled parliament last week approved a reduced special defense budget, falling short of the amount requested by the government.

A senior U.S. official said on Sunday that Washington was disappointed by the lower allocation, arguing the spending level did not fully match Taiwan’s security needs.Lin urged lawmakers to take corrective action to strengthen defense funding, saying deterrence depended on Taiwan’s ability to demonstrate credible self-defense capabilities.

“Peace depends on strength it requires demonstrating the defense capability for self-defense in order to deter aggression,” Lin said.He also accused China’s Communist leadership of accelerating military expansion and promoting authoritarian influence beyond its borders.

The Trump-Xi summit is expected to be closely watched by governments across Asia and the wider international community for indications of how the world’s two largest powers intend to manage growing strategic rivalry, particularly over Taiwan and regional security.

In a statement released late on Saturday, the ministry’s Hong Kong office said Commissioner Cui Jianchun met U.S. Consul General Julie Eadeh on March 27 and conveyed “strong dissatisfaction and firm opposition” to the alert, calling on the United States to stop intervening in Hong Kong matters “in any form.

”The dispute follows recent amendments to Hong Kong’s national security enforcement rules, which make it an offence in national security cases to refuse to provide passwords or other assistance to access electronic devices.

In response, the U.S. Consulate General in Hong Kong issued a public alert on March 26 advising U.S. citizens to contact the consulate if they are arrested or detained in connection with the updated rules.

The alert highlighted concerns over the expanded scope of enforcement powers under the revised framework.The U.S. Consulate General did not immediately respond to a request for comment outside business hours.

The exchange underscores ongoing tensions between Beijing and Washington over Hong Kong’s governance and legal environment, particularly since the introduction of national security measures that foreign governments have said could affect civil liberties and legal protections.

Chinese authorities have consistently defended the measures as necessary to safeguard stability and national sovereignty, rejecting external criticism as unwarranted interference.

Markets Show Resilience Amid Mixed Earnings

At 04:59 a.m. Eastern Time, Dow E-minis were down just 16 points, or 0.03%, while S&P 500 E-minis rose 2.25 points, or 0.03%, and Nasdaq 100 E-minis slipped 27 points, or 0.11%.

The minor fluctuations signaled that investors remain confident despite temporary volatility from corporate earnings announcements.

Netflix (NFLX.O) shares dipped 6.8% in premarket trading after the streaming giant missed Wall Street’s third-quarter profit estimates — an unusual miss for the company known for consistent subscriber growth and global expansion.

However, analysts pointed out that the company’s long-term fundamentals remain strong, particularly with its growing ad-supported tier and continued international audience gains.

“The reaction to Netflix’s earnings shows how high investor expectations are,” said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management. “The company remains a leader in digital content, and its expansion into live events and gaming will help diversify future revenue streams.”

Broader Market Sentiment Remains Constructive

Despite some short-term earnings disappointments, the U.S. equity market continues to hover near record highs, supported by robust corporate profits and steady economic data. The S&P 500 ended Tuesday virtually unchanged, the Nasdaq dipped slightly, while the Dow Jones Industrial Average closed up 0.5%, signaling that investors are selectively rotating toward stable, value-driven stocks.

According to LSEG data, of the 78 S&P 500 companies that have reported so far, 87% have beaten analyst estimates, reflecting broad-based earnings strength across multiple sectors.

Analysts now expect third-quarter earnings growth of 9.2% year-over-year, up from 8.8% earlier in October — a sign that U.S. corporations continue to perform well even in a cautious environment.

Tech Sector in Focus

In the technology sector, Texas Instruments (TXN.O) dropped 8.7% in premarket trading after forecasting lower-than-expected fourth-quarter revenue.

Nonetheless, analysts noted that demand for chips tied to AI applications, automation, and industrial systems remains a key long-term growth driver.

Peers such as Microchip Technology (MCHP.O), NXP Semiconductors (NXPI.O), and ON Semiconductor (ON.O) also saw modest declines, but investors expect the sector to stabilize as chip demand normalizes and AI-related investment expands globally.

Meanwhile, Alphabet (GOOGL.O) shares rose 1.3% following reports from Bloomberg that Anthropic — a leading AI research company — is in talks with Google to secure additional computing resources worth tens of billions of dollars.

The partnership underscores Alphabet’s ongoing commitment to AI innovation and digital infrastructure leadership.

Focus Turns to Tesla and Upcoming Earnings

All eyes are now on Tesla (TSLA.O), which is set to report earnings after markets close. As the first of the so-called “Magnificent Seven” tech giants to release results, Tesla’s performance could set the tone for other mega-cap names in the days ahead.

The company’s shares rose 0.4% in premarket trading, reflecting optimism about its new battery technologies and autonomous driving software pipeline.

Elsewhere, AT&T (T.N) traded flat ahead of its quarterly report, while several financial and industrial firms are expected to post results later this week.

Analysts believe the diversity of earnings reports will provide valuable insight into consumer spending trends, corporate investment, and business confidence heading into the final quarter of the year.

External Factors and Policy Outlook

Geopolitical developments remain a watchpoint, with a planned summit between U.S. President Donald Trump and Russian President Vladimir Putin postponed, while uncertainty surrounds a potential meeting with Chinese President Xi Jinping.

Nonetheless, diplomatic channels between Washington and Beijing remain open, and recent trade discussions have helped ease fears of escalation.

At home, the Federal Reserve faces challenges in interpreting economic conditions due to the temporary government shutdown, which has delayed the release of several key data reports.

Still, the central bank is expected to maintain a measured approach in its upcoming policy meeting, with inflation showing signs of stability. September’s core Consumer Price Index (CPI) is forecast to hold steady at 3.1%, supporting expectations for a gradual, data-driven monetary stance.

Overall, Wall Street remains in a steady and constructive position, balancing short-term corporate volatility with long-term economic optimism.

Analysts see continued opportunities in sectors linked to AI, energy transition, and digital infrastructure, while stable inflation and strong earnings could keep markets on firm ground.

Though investors are treading carefully during earnings season, the underlying sentiment remains cautiously optimistic — a sign that U.S. markets continue to display resilience, adaptability, and confidence amid evolving global conditions.