India, May 14 -- Chinese President Xi Jinping warned US President Donald Trump that relations between the world's two largest economies could "come into conflict" if the Taiwan issue is mishandled, during high-stakes talks in Beijing focused on trade, regional security and the Iran conflict.

Speaking during the bilateral summit, Xi described Taiwan as the "most important issue in China-US relations" and cautioned that any mismanagement could push ties into a "highly perilous situation," according to Chinese state media.

"The Taiwan question is the most important issue in China-US relations," Xi said, while reiterating Beijing's position that Taiwan's independence is incompatible with peace and stability in the Taiwan Strait.

Trump, who...