US diplomat warns Taiwan Strait conflict could surpass WWII economic impact

Raymond Greene, director of the American Institute in Taiwan, has warned that a conflict in the Taiwan Strait would result in a global economic impact greater than that of World War II. Speaking at a defense forum in Taipei, Greene emphasized the necessity of maintaining peace and avoiding miscalculations between the United States and China.

The warnings come ahead of an expected summit between Chinese President Xi Jinping and U.S. President Donald Trump. Greene noted that the upcoming meeting presents an opportunity to advance strategic stability through fairness and reciprocity to prevent misunderstandings.

To maintain a favorable regional balance of power, the United States is reinforcing its presence and partnerships in the Asia-Pacific while supporting Taiwan’s ability to defend itself. Meanwhile, the administration of Taiwanese President William Lai Ching-te is prioritizing military modernization, with defense spending projected to exceed 1 trillion Taiwan dollars next year.