US Taiwan Envoy Warns Conflict Would Dwarf WWII Economic Impact — SkimNews
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- Raymond Greene, director of the American Institute in Taiwan, warned at a Taipei defense forum that any conflict across the Taiwan Strait would have a bigger impact on the global economy than the second world war.
- Greene called the upcoming US-China summit "an opportunity to further advance a relationship of strategic stability, on the basis of fairness and reciprocity, that can avoid misunderstandings and miscalculations."
- Xi Jinping is expected to travel to the United States later this month to meet with Donald Trump, the summit Greene linked to peace efforts in the strait.
- The US, which has no formal diplomatic relations with Taiwan, remains the island's most important international backer and arms supplier, Greene said.
- Greene outlined three US priorities: "vigorous" diplomacy at the highest levels, reinforcing US presence and partnerships in the Asia Pacific to maintain a "favourable regional balance of power," and supporting Taiwan's ability to defend itself.
- Taiwan's government, led by President William Lai Ching-te, has budgeted next year's defense spending to exceed 1 trillion Taiwan dollars ($31.76bn) for the first time, citing the threat level from China.
Why it matters: Greene's public WWII-scale economic warning, delivered weeks before Trump meets Xi, puts a US price tag on Taiwan deterrence while leaving diplomacy open. Taiwan's $31.76bn defense budget — its first above 1 trillion Taiwan dollars — signals Taipei is preparing for the conflict scenario Greene described, not waiting for Washington to prevent it.
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