Xi privately pressed Trump to back off Taiwan during their meeting — bad for Taiwan, bad for US arms makers, and a warning sign that China is preparing to move.

• Xi told Trump to publicly oppose Taiwan independence and halt the $11 billion US arms sale to Taiwan.
• Rubio pushed back, saying US policy on Taiwan has not changed.
• The Taiwan fight shrunk the deal: Boeing got 200 jets instead of the planned 500, alongside Nvidia chip sales to Alibaba, JD.com, and Foxconn.
• China is signaling it plans to take Taiwan and wants it lightly armed so the takeover stays bloodless, like a forced surrender rather than a war.
• China also wants the Strait of Hormuz reopened fast because the Iran conflict is hurting Chinese trade, giving Beijing leverage to argue the US has a double standard on arms sales.

Outlook: Expect China to keep pressuring Washington to drop the Taiwan arms package while moving troops and ships into position for a possible blockade or takeover.