Economy China won't give up 'even one inch' of territory, says Xi Jinping Updated : June 28, 2018 06:32 AM IST Beijing is also deeply suspicious of US intentions toward self-governing and democratic Taiwan, which is armed by the United States. China views the island as a sacred part of its territory. In May, the Pentagon withdrew an invitation to China to join a multinational naval exercise, citing China's military moves in the South China Sea. While both sides acknowledged points of friction, they also sought to focus on areas of alignment -- including a shared goal of denuclearization of the Korean peninsula. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.