U.S. President Donald Trump said that he expected to reach a fair trade agreement with Chinese President Xi Jinping and played down fears of confrontation between the two powers over Taiwan.

Speaking to reporters, Trump indicated that China had no intention of invading Taiwan but confirmed that the issue would likely feature in discussions during his upcoming meeting with Xi on the sidelines of an economic forum in South Korea next week.

Trade friction between Washington and Beijing, the world’s two largest economies remains unresolved, with disputes over tariffs, technology, and market access still lingering ahead of the talks. Trump’s remarks came before his White House meeting with Australian Prime Minister Anthony Albanese.

The comments on Taiwan touched on one of the most delicate aspects of U.S.-China relations. Beijing has frequently urged Washington to change its wording when referring to Taiwan’s independence.

Trump also vowed to speed up the delivery of nuclear-powered submarines to Australia. When asked whether U.S. actions in the Indo-Pacific were sufficient to deter Xi from attacking Taiwan, he replied, “China doesn’t want to do that,” before highlighting America’s military superiority.

“We have the best of everything, and nobody is going to challenge that,” Trump said. “I think we’ll end up with a very strong trade deal. Both of us will be happy.”

When questioned about whether Washington might alter its stance on Taiwan’s independence to secure a trade agreement with Beijing, Trump said, “We’re going to be talking about many things. I assume that will be one of them, but I’m not going to discuss it now.”

China has intensified its military and diplomatic pressure on self-governing Taiwan, which it claims as part of its territory, and has never ruled out the use of force to bring the island under its control.

The United States remains Taiwan’s key international partner and main arms supplier, despite the absence of formal diplomatic relations, a stance that regularly draws condemnation from Beijing.

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