What’s new? Tensions are rising over Taiwan. The fabric of political understandings that contributed to cross-strait peace and security for decades has begun to unravel as China’s power and assertiveness grows, competition between the U.S. and China spreads, and the Taiwanese people develop a distinct identity increasingly disassociated from the mainland.
Why does it matter? A Chinese military offensive to take over Taiwan is unlikely in the near term, but conflict risks are rising. Taiwan remains the most likely flashpoint between the U.S. and China. A direct confrontation between the big powers could mean global conflagration, global economic shocks and the potential for nuclear escalation.
What should be done? The parties should assure one another that the political understandings hold. China should reduce its military, economic and political coercion of Taiwan; the U.S. should clarify and uphold its “one China” policy; Taiwan’s next president should seek to resume dialogue with the mainland and strengthen the island’s defence.
Executive Summary
Tensions over Taiwan are rising, raising the prospect of a direct conflict between the U.S. and China that could bring with it global economic shocks and the potential for nuclear escalation. Political understandings that preserved peace for decades are fraying under the pressure of U.S.-China competition, a stronger and more assertive China, and the growth of a Taiwanese identity that sees itself as separate from the mainland. A Chinese invasion of Taiwan is unlikely any time soon, but the risk of conflict is rising. Managing it requires the parties to reestablish a baseline level of trust by shoring up longstanding political understandings. Washington should credibly assure Beijing that it does not seek to keep Taiwan permanently separated from the mainland. Taipei should credibly assure Beijing that it does not seek formal independence. Beijing should credibly assure Washington and Taipei that it has not decided to unify with Taiwan through military force. At the same time, Taipei’s military vulnerability is also an issue: it should develop better defensive capabilities to give deterrence the best odds of success.



















