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Geopolitical Score 72 Neutral

Xi Jinping and KMT Leader Hold First Cross-Strait Opposition Talks in Decade

Apr 10, 2026 08:37 UTC
AAPL, TWD=X
Medium term

Chinese President Xi Jinping met with KMT chair Cheng Li-wun in Beijing to discuss peaceful cross-strait relations. The meeting signals a diplomatic opening ahead of a planned May visit by U.S. President Donald Trump.

  • First meeting between Xi and a Taiwanese opposition leader in 10 years
  • Xi identifies 'Taiwan independence' as the primary threat to stability
  • KMT promotes 'deterrence through dialogue' ahead of 2028 elections
  • KMT has blocked a $40 billion special defense budget for air defense
  • Talks precede a May meeting between Xi Jinping and Donald Trump

President Xi Jinping hosted Kuomintang (KMT) party chair Cheng Li-wun in Beijing on Friday, marking the first encounter between the Chinese leader and a sitting Taiwanese opposition head in nearly ten years. The meeting comes as the KMT seeks to establish itself as a primary diplomatic channel with Beijing ahead of Taiwan's 2028 presidential election. In an official readout, President Xi stated that Beijing welcomes proposals conducive to the peaceful development of cross-strait relations. However, he reiterated that 'Taiwan independence' remains the primary threat to regional stability and called for opposition to separatism and foreign interference. Xi emphasized that the 'One China' principle remains the non-negotiable basis for any engagement, while calling for deeper economic, trade, and cultural exchanges. Cheng Li-wun described her visit as a strategy of 'deterrence through dialogue,' pledging that the KMT would seek to resume broad exchanges, including tourism and political engagement, should the party return to power. She urged both sides to move beyond political confrontation to prevent the outbreak of war. The diplomatic outreach occurs amid significant internal political friction in Taiwan. The KMT has currently stalled a proposed $40 billion special defense budget intended to fund a multi-layered air defense system to counter potential mainland incursions. This move reflects a calculation by some in the business community that the current administration's posture has provoked unnecessary confrontation. Analysts suggest the meeting reduces the immediate risk of military conflict, signaling Beijing's current preference for a peaceful approach. These developments set the stage for a high-stakes meeting in May between President Xi and U.S. President Donald Trump, where Taiwan, trade, and fentanyl flows are expected to be central topics of discussion.

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