Publication

This paper discusses how the US can best sustain its strategic and economic relations with Taiwan. It specifically argues that Washington should continue to support Taiwan’s defense needs, but that it also needs to adopt a more nuanced approach than the present one, which largely involves making occasional arms sales to the island nation. Indeed, the approach should stress 1) “human capital prestige” rather than “hardware prestige”; 2) smart defense investments rather than just expensive ones; and 3) Taiwan’s deeper integration into the international marketplace. Such measures, after all, will allow Taiwan to improve its deterrence against China, get its economy growing again, and achieve greater international visibility than it now enjoys — all without sliding from China-skepticism to China-hostility.