The Sino-American trade war is only just beginning. Initial reports show that the American side is faring better than the Chinese, but these reports are hardly conclusive. As David P. Goldman has assessed, China still has a great deal of maneuvering room with which to bludgeon the United States.
What Washington needs in its ongoing trade war is greater leverage. And, that leverage will not be found in the economic realm.
True leverage would keep China’s leadership off-balance. To that end, the United States should recognize Taiwan’s independence.
Beijing has long insisted that Taiwan is part of China and that the two “will be united” . . . someday. Chinese President Xi Jinping, moreover, won’t rule out the use of force in achieving this long-standing aim. Beijing believes it is a fait accompli that Taiwan will be returned to Chinese rule just as the British ultimately gave up prosperous Hong Kong. And once Taiwan is brought under its dominion, China will have secured its maritime border.
One China, Two Systems?
The United States, for its part, has for 40 years tried to thread the needle between appeasing China and backing Taiwan’s independence in all but name.