According to the Financial Times, the US is preparing to sell arms to Taiwan worth up to $20 billion, including Patriot missile defense systems and advanced NASAMS surface-to-air missiles. This move comes after a previous record sale of $11.1 billion approved by the Trump administration in December. China has expressed significant concern over the US's plans, warning that escalating tensions over Taiwan could affect the upcoming diplomatic engagements between the US and China, including Trump's scheduled visit to China in April. Despite these tensions, analysts believe that the potential for the cancellation of Trump's visit is low, suggesting that China’s reaction may be a strategy to enhance its negotiating position.

The challenge over the Taiwan issue reflects an ongoing struggle in US-China relations, with Xi Jinping emphasizing the importance of the Taiwan situation during a recent phone call with President Trump. This reiteration of the sensitivity surrounding arms sales to Taiwan signals potential complications for diplomacy between the two nations. The Brookings Institution's China expert highlighted the significance of China's more direct and public warnings against arms sales, indicating a shift in the tone of these discussions which could have broader implications for international relations.

Simultaneously, Taiwan faces internal political struggles regarding its national defense budget, with reports that it has requested an extension on a deadline for signing arms contracts with the US amidst these tensions. Without this extension, there's a risk that the arms deal could be annulled, potentially jeopardizing Taiwan's defense capabilities. Such developments signify the intricate balance Taiwan must maintain in the midst of escalating US-China tensions, as it seeks to secure its defensive needs while navigating its political landscape.