The Business Press – June 27, 2023 at 09:00AM
The world’s two largest economies and two nuclear-armed powers are drifting towards a conflict over Taiwan. China seeks to isolate Taiwan and advance its goal of unification, while the US has vital strategic interests at stake, and Taiwan’s fate will have major implications on US interests around the world.
Taiwan physically sits astride some of the world’s busiest shipping lanes and prevents China from projecting power beyond its shores.
China, if occupying Taiwan with its military, would be able to limit US military operations in the region and hinder its ability to defend allies. Economically, Taiwan’s dominance of semiconductor manufacturing would trigger a global economic depression and shave trillions of dollars off economic output.
Ideationally, Taiwan’s fate has implications for international order. The most basic pillar of international relations would be severely undermined if authoritarian countries succeed in using force to attack democratic neighbors and change borders.
As a democratic success story and a critical economic and strategic partner, it is imperative to deter Chinese aggression against Taiwan and prevent a war. The US should pursue a bilateral security cooperation program with Taiwan, seek greater clarity from its allies, and focus on substance over symbolism.
Making adjustments will be difficult, but failure to adapt will be far more dangerous for the world’s most economically critical region.
The Business Press 