Conflict over Taiwan would be disastrous, de facto US ambassador warns

In practice, the top US diplomat in Taipei has cautioned that any conflict throughout the Taiwan Strait would have a bigger impact on the global economy than World War II, just weeks before Chinese President Xi Jinping is due to travel to Washington.

Key points

• Xi Jinping is projected to travel to the United States afterwards this month to meet with President Donald Trump.
• "The United States under the Trump administration has made preserving peace in the Indo-Pacific one of its top priorities, " he continued.
• Taiwanese President William Lai Ching-te's administration has created stepped-up defence spending and military modernisation priorities, citing the threat level from China.
• "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 remarked.
• According to Greene, the US was additionally reinforcing its presence and partnerships in the Asia Pacific to maintain a "favourable regional balance of power".

Speaking at a defence forum in Taipei on Wednesday, Raymond Greene, director of the American Institute in Taiwan, remarked there was no topic more timely or notable than how to secure peace in the Taiwan Strait, adding that the upcoming US-China summit is an opportunity to avoid miscalculations.

"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 continued.

While the US, like most countries, has no formal diplomatic relations with Chinese-claimed Taiwan, it is the democratically governed island's most significant international backer and arms supplier.

"The United States under the Trump administration has made preserving peace in the Indo-Pacific one of its top priorities, " he continued. That includes "vigorous" diplomacy, especially at the highest levels, he remarked.

"Third, and especially relevant to today's discussion, we are supporting Taiwan's work to enhance its ability to defend itself, " he remarked.

Notably, the administration, which rejects Beijing's claims to the island, has budgeted defence spending for next year to exceed 1 trillion Taiwan dollars ($31.76bn) for the first time.

Taken together, the developments around conflict over Taiwan would be disastrous, de facto US ambassador warns point to a situation that is still moving, and the coming days should bring more clarity.