AIT Director Warns Taiwan Strait Conflict Would Have Severe Global Economic Consequences

September 9, 2026 — Raymond Greene, director of the American Institute in Taiwan, warned at a Taipei defense forum that conflict across the Taiwan Strait would carry a major human toll and could have global economic effects exceeding those of the Second World War.

According to Reuters, Greene said an upcoming United States–Mainland China summit offered an opportunity to reduce misunderstandings and miscalculations. He described the U.S. approach as combining high-level diplomacy, regional partnerships and support for the Republic of China in Taiwan’s ability to defend itself.

ROC in Taiwan Vice President Hsiao Bi-khim, speaking at the same forum, said Taiwan had a responsibility to strengthen its defenses and prepare society for a range of security challenges. Reuters quoted her as saying the purpose was to preserve peace and the freedom of Taiwan’s people to determine their future.

The Mainland Chinese Communist Government continues to claim sovereignty over Taiwan and has not renounced the use of force. The government of the Republic of China in Taiwan rejects Beijing’s sovereignty claim. Reuters reported that no major political party in Taiwan supports Beijing’s proposed “one country, two systems” framework.

Greene’s economic comparison was a policy warning, not a measured forecast of a specific conflict. The remarks did not announce new military action, a change in formal U.S. policy or an imminent attack.

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