Chinese President Xi Jinping is expected to press US President Donald Trump to halt arms sales and deliveries to Taiwan during talks in Washington this week, citing Beijing’s interpretation of a 1982 joint communique. China’s ambassador to the US, Xie Feng, separately warned that Beijing’s sovereignty, security and development interests must not be violated, identifying Taiwan, democracy and human rights, development paths and systems, and development rights as four red lines. The United States says it intends to reduce arms sales over time but has linked that position to China’s continued commitment to resolving differences peacefully. Washington is weighing a new package worth about $14 billion after approving an $11 billion package in December, while China has offered help pressuring Iran over the war in the Middle East. The discussions will take place amid intensified Chinese military activity around Taiwan and continued US political support for the island’s self-defense. Market signals described in the update are consistent with a reduced likelihood of an imminent Chinese military offensive, while the summit’s outcome, official statements and any People’s Liberation Army exercises will be watched for signs of changing tensions.