U.S. Envoy Says Taiwan Conflict Risk Overpriced by Investors
· World · CNBC, RT International
Investors are overestimating the risk of conflict across the Taiwan Strait, according to Michael DeSombre, U.S. assistant secretary of state for East Asian and Pacific affairs. Speaking in Singapore on Thursday, DeSombre stated that both Washington and Beijing wish to avoid conflict and that deterrence will maintain stability. Beijing claims Taiwan as its territory and has not ruled out force, while maintaining pressure with increased military presence near the island. The U.S. has withheld approval for a $14 billion arms sales package to Taipei following an earlier $11 billion package in December. Meanwhile, Taiwanese Foreign Minister Lin Chia-lung recently visited Phoenix, Arizona, for the opening of a new de facto consulate.
Why it matters
Financial markets and global shipping depend heavily on stability in the Taiwan Strait, making investor risk assessments crucial for cross-border capital flows.
Read the original report — CNBC
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