World
US Envoy Warns Taiwan Conflict Could Outpace WWII's Economic Toll Ahead of Trump-Xi Summit
By Reuters
The senior American representative in Taipei has cautioned that a military conflict in the Taiwan Strait would inflict greater damage on the global economy than World War II, speaking just weeks before Chinese President Xi Jinping is expected to meet with US President Donald Trump in Washington.
Raymond Greene, director of the American Institute in Taiwan, made the remarks at a defence forum in Taipei on Wednesday. He described securing peace in the Taiwan Strait as one of the most urgent issues today and said the forthcoming US-China summit presents a chance to prevent miscalculations between the two powers.
"The upcoming US-China summit is an opportunity to further advance a relationship of strategic stability, on the basis of fairness and reciprocity, that can avoid misunderstandings and miscalculations," Greene said.
Although the United States, like most nations, does not maintain formal diplomatic relations with Taiwan due to China's territorial claims over the island, it remains Taiwan's principal international ally and primary supplier of weapons.
"Beyond the human toll, any conflict across the Taiwan Strait would have a bigger impact on the global economy than the second world war," Greene stated.
He noted that the Trump administration has placed peace in the Indo-Pacific region among its top priorities, pursuing what he called vigorous diplomacy, particularly through high-level engagement. Greene also said Washington is strengthening its military presence and alliances across the Asia-Pacific region to maintain a favorable balance of power.
"Third, and especially relevant to today's discussion, we are supporting Taiwan's work to enhance its ability to defend itself," he added.
Taiwanese President William Lai Ching-te has prioritized increased defense spending and military modernization, pointing to escalating threats from Beijing. Taiwan's government, which disputes China's sovereignty claims over the island, has set next year's defense budget above 1 trillion Taiwan dollars (approximately $31.76bn) for the first time in the island's history.