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

What the report says

The United States’ top representative in Taipei, Raymond Greene, used a defence forum in Taiwan on Wednesday to warn that any conflict in the Taiwan Strait would have severe consequences, arguing it could hit the global economy more than World War II. Greene, who heads the American Institute in Taiwan, also said the coming US-China summit is a chance to reduce the risk of misunderstandings and miscalculations.

The remarks come as Chinese President Xi Jinping is expected to visit the United States later this month for talks with President Donald Trump. Al Jazeera’s report notes that the United States does not have formal diplomatic relations with Taiwan, but remains the island’s main international backer and arms supplier. Greene said Washington is prioritising peace in the Indo-Pacific through diplomacy, regional partnerships and support for Taiwan’s self-defence.

Taiwanese President William Lai Ching-te’s government has been expanding defence spending and military modernisation in response to pressure from Beijing, which claims the island as its own. According to the article, Taipei has budgeted defence spending for next year to exceed 1 trillion Taiwan dollars, or about $31.76 billion, for the first time. The reported comments highlight how Taiwan remains a major flashpoint in US-China relations and a potential source of wider economic and security disruption.