Axios says Trump allies fear Xi could attack Taiwan within 5 years, risking AI chips

WASHINGTON, DC: President Donald Trump’s inner circle is reportedly sounding alarms after his high-profile summit with Chinese President Xi Jinping, with some advisers now privately fearing that Beijing may move militarily on Taiwan within the next five years.

The concern, according to a report by Axios published Sunday, May 17, is not just geopolitical, it’s economic, technological and potentially devastating for America’s race to dominate artificial intelligence, where advanced semiconductor access remains critical. 

Behind the smiles, Trump allies see a warning sign

While President Donald Trump publicly celebrated his Beijing visit as productive, some of his own advisers appear to have walked away with a far darker read of what unfolded behind closed doors.

One adviser described President Xi’s messaging as unmistakable: China is no longer presenting itself as a rising challenger, but as an equal power, one prepared to draw hard lines over Taiwan.

According to the report, one Trump adviser said Xi’s posture amounted to a blunt message: “We’re not a rising power. We’re your equal. And Taiwan is mine.”

The same adviser reportedly warned that the summit may have significantly increased the chances that Taiwan will become a point of confrontation in the next five years.

The anxiety inside Trump’s orbit appears to center on what a Taiwan conflict would do to America’s economic backbone, especially the semiconductor supply chain feeding AI companies, cloud computing giants, defense contractors, and consumer tech manufacturers.

One adviser reportedly warned, “There’s no way we can be ready economically. The chips supply chain won’t be anywhere close to self-sufficiency.” 

Why Taiwan matters far beyond geopolitics

Taiwan is not just a flashpoint in US-China tensions; it sits at the heart of the global semiconductor ecosystem.

The island is home to Taiwan Semiconductor Manufacturing Company, the world’s most critical producer of cutting-edge chips used in AI systems, high-performance graphics processors, smartphones, cloud infrastructure, and military systems.

Any blockade, invasion, or prolonged instability in the Taiwan Strait could send shockwaves through global markets and potentially cripple access to the advanced processors powering next-generation AI development.

The summit concerns also come after Xi reportedly warned Trump that mishandling the Taiwan issue could push US-China relations into a “dangerous place,” asserting how central the island remains in Beijing’s strategic calculus. 

Earlier, Trump, while speaking to Fox News during his China visit, urged Taiwan chipmakers to move production to the US, claiming America could secure up to half of global chip output.

Trump urges Taiwan chipmakers to move production to the US, claiming America could secure up to half of global chip output, highlighting Taiwan’s critical role in the AI supply chain

For now, Washington continues to maintain its long-standing posture of strategic ambiguity on Taiwan.

But inside Trump’s own camp, some advisers appear convinced that after Beijing, the risks are no longer theoretical and the clock may already be ticking.