Despite the lack of formal diplomatic relations, the United States remains Taiwan’s major international backer and arms supplier.
Published September 9, 2026
The top US diplomat in Taipei has warned that the conflict across the Taiwan Strait will have a bigger impact on the global economy than World War II, weeks before Chinese President Xi Jinping is scheduled to visit Washington.
Speaking at a defense forum in Taipei on Wednesday, Raymond Green, director of the American Institute in Taiwan, said there is no more timely and important topic than how to ensure peace in the Taiwan Strait, adding that the upcoming US-China summit is an opportunity to avoid miscalculation.
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Xi Jinping is scheduled to visit the United States later this month and meet with President Donald Trump.
“The upcoming U.S.-China summit is an opportunity to further advance a strategically stable relationship that is based on fairness and reciprocity and avoids misunderstandings and miscalculations,” Green added.
The United States, like many other countries, has no formal diplomatic relations with Taiwan, which is claimed by China, but Taiwan is the democratically ruled island’s most important international patron and arms supplier.
“Aside from human casualties, a trans-Taiwan Strait conflict would have a greater impact on the global economy than World War II,” Green said.
“The United States under the Trump administration has made maintaining peace in the Indo-Pacific one of its top priorities,” he said.
That includes “vigorous” diplomacy, especially at the highest levels, he said.
Green said the United States is also strengthening its presence and partnerships in the Asia-Pacific region to maintain a “favorable regional balance of power.”
“Third, and particularly relevant to today’s discussion, we support Taiwan’s efforts to strengthen its defense capabilities,” he said.
Taiwan’s President Lai Ching-de’s administration has prioritized increased defense spending and military modernization, citing China’s threat level.
The government, which rejects Beijing’s claims to the island, has earmarked a defense budget of more than NT$1 trillion ($31.76 billion) for next year for the first time.
