US envoy warns Taiwan Strait conflict would devastate global economy
American Institute in Taiwan director Raymond Greene says a conflict could have a greater economic impact than World War II, as Washington and Beijing prepare for an expected summit.
A conflict across the Taiwan Strait could have a greater impact on the global economy than World War II, Raymond Greene, director of the American Institute in Taiwan, has warned.
Speaking at a defence forum in Taipei on Wednesday, Greene said an expected US-China summit could help advance “strategic stability” and reduce the risk of misunderstandings and miscalculations. A reported visit by Chinese President Xi Jinping to the United States later this month has not been confirmed.
Greene said the United States was reinforcing its presence and partnerships in the Asia-Pacific as part of efforts to maintain a favourable regional balance of power. Washington also supports Taiwan’s efforts to strengthen its defence capabilities.
The United States has no formal diplomatic relations with Taiwan but remains the island’s main international backer and arms supplier. Taiwan’s government rejects Beijing’s sovereignty claims.
Taiwan’s administration has made increased defence spending and military modernisation priorities. Defence spending is budgeted to exceed 1 trillion Taiwan dollars ($31.76 billion) next year for the first time.
