China has warned Washington that recent US arms sales to Taiwan could jeopardize a planned summit between Chinese President Xi Jinping and US President Donald Trump. This escalation comes amid persistent tensions between the two powers over Taiwan, a self-governed island that China considers a breakaway province. The market reflects this uncertainty with a notable decrease in the probability that Xi Jinping will visit the US before 2027. The likelihood of a visit before September 24 has particularly dropped, with market participants interpreting these arms sales as a major obstacle to improving US-China relations.
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