The senior US diplomat in Taipei has warned that any conflict over Taiwan would have a greater impact on the global economy than World War II, speaking at a defence forum in the Taiwanese capital on Wednesday. Raymond Greene, director of the American Institute in Taiwan (the de facto US embassy on the self-governed island), said the forthcoming summit between President Donald Trump and Chinese leader Xi Jinping represents an opportunity to prevent dangerous miscalculations. Greene added that Washington is reinforcing its regional partnerships to maintain a favourable balance of power in the Indo-Pacific while continuing to support Taiwan's military modernisation, as Taipei prepares to exceed one trillion Taiwan dollars ($31.76bn) in defence spending for the first time next year.