US Treasury Secretary Scott Bessent on Wednesday described the United States as an ally to both mainland China and Taiwan, while at the same time asserting that its relationships have not shifted, hours after US President Donald Trump enacted legislation deepening US ties with the self-governed island.
Asked about concerns among some in Washington about the Trump administration’s approach to the long-held policy of strategic ambiguity on the Taiwan issue at The New York Times DealBook Summit, Bessent said: “The United States is an ally of China. The relationship remains unchanged.”
When asked to clarify if the US was an ally of Taiwan, he restated that “the relationship remains unchanged”. He refused to answer if the US would come to the island’s defence if Beijing attempted to invade, calling the question “hypothetical”.
In a recorded video interview at the same event, Taiwanese leader Lai Ching-te later warned that Beijing’s military drills around the island were “becoming increasingly frequent and intense”.
However, he stopped short of directly commenting on whether he was confident the US would defend Taiwan in the event of an invasion, saying: “Since President Trump took office, cooperation with Taiwan has not only continued, but even expanded.”
China’s embassy in Washington did not immediately respond to a request for comment.
Beijing claims Taiwan as part of its territory and has said it will eventually unite the island with the mainland, by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state.
Washington’s interactions with Taiwan, including arms sales, have long been a source of tension in US-China relations.
To Beijing’s dismay, on Tuesday, Trump signed the Taiwan Assurance Implementation Act, which requires the US State Department to conduct reviews of contacts with Taiwan at least once every five years.
Chinese Foreign Ministry spokesperson Lin Jian said China firmly opposes any form of official contact between the US and “the Taiwan region of China”.
Lin urged the US to “approach the Taiwan question with extra prudence, stop US-Taiwan official exchanges, and stop sending any wrong signal to ‘Taiwan independence’ separatist forces”.
In 2021, during Trump’s first term, Secretary of State Mike Pompeo removed long-standing limits on interactions between US officials and their Taiwanese counterparts, rules first established when Washington recognised Beijing in 1979.
The subsequent Joe Biden administration did not reverse this decision. On several occasions, Biden pledged to defend the island against a forceful reunification, though White House officials were quick to clarify or temper his comments each time.
Since returning to the White House in January, Trump has avoided stating whether he would defend Taiwan militarily, while encouraging the island to increase its defence spending, up to 10 per cent of its GDP.
Last week, Lai announced a US$40 billion arms procurement budget for 2026 to 2033. For 2026, Taiwan has set its defence budget at 3.3 per cent of GDP, amounting to US$31.18 billion.
Trump and Xi find common ground on Taiwan
In August, Trump reportedly blocked Lai’s US stopover on a South American trip, fearing potential disruption to China trade talks and a summit with Chinese President Xi Jinping.
While Trump has secured a trade truce with Beijing, the “America first” president has accused Taiwan of undermining the US chip industry.
He has imposed a 20 per cent tariff on imports from the island and is considering steep tariffs on imported semiconductors, aiming to bring advanced chip manufacturing back to the US, even as trade talks continue.
Taiwan has the world’s largest chip manufacturer, TSMC. The company has announced US investments worth US$100 this year.
Bessent on Wednesday also warned that the “single point of failure for the global economy would be the disruption of chips from the island of Taiwan”.
There have been concerns among some Washington analysts that if the US becomes self-reliant in chip manufacturing, Taiwan will lose its strategic value in American foreign policy. However, Bessent rejected the argument.
“It’s like saying that, if I have insurance … is my house more or less likely to catch on fire? Because you’re de-risking doesn’t mean you’ve changed anything,” he said.
The remarks come shortly after a call between Xi and Trump on November 24, when the two leaders discussed Taiwan.
In a statement issued by Beijing, it said that during the conversation, Xi “outlined China’s principled position on the Taiwan question” and “underscored that Taiwan’s return to China is an integral part of the post-war international order”. While Trump touted “extremely strong relations” with China after the call.
Reuters reported that following his call with Xi, Trump told Japanese Prime Minister Sanae Takaichi not to further escalate a dispute with China during talks on November 27.
Last month, Takaichi sparked one of the biggest diplomatic disputes with Beijing in years by saying in parliament that Japan could respond militarily if there were an attack on Taiwan.
Trump has described his Chinese counterpart as a “great leader” and “friend”. The two also met in Busan, South Korea, in October. While trade remained the key focus of that meeting, Trump told reporters that the issue of Taiwan was not discussed.
According to the White House, at the Busan summit, China committed to resume purchasing American soybeans after months of boycotts amid trade tensions, and to lift restrictions on exports of certain rare earth metals and critical minerals crucial for the US to develop its domestic chip manufacturing industry.
On Wednesday, Bessent said that China was on track to complete its commitments under a US-China trade agreement, including the purchase of 12 million metric tons of soybeans, which he confirmed would be completed by February 2026.
China has not confirmed the specific volume of soybeans that the US says it pledged to buy. While Beijing has lifted some restrictions on rare earth exports, a formal deal on rare earths has yet to be finalised.
“I will say that China is on track to keep every part of the deal,” Bessent said confidently.