American economist Tyler Cowen cautions Taiwan not to make hasty decisions during trade dispute
By: Judy Lo, Taiwan News, Staff Writer
Cowen was invited as a keynote speaker to a panel discussion in Taipei, organized by Business Today (今周刊). He argued Taiwan might become one of the major losers in the trade dispute because it is impossible to choose between the world’s two biggest economic powers.
On the one hand, Taiwan is close to China, has made massive investments, and high-income manpower flows into China. On the other hand, China’s increased military deployments in the South China Sea should be a clear sign that China’s intentions are not friendly, said Cowen.
Economically, Taiwan is heavily dependent on China, but it needs U.S. support to defend its sovereignty. To choose one over the other, Cowen said, is an impossible decision, like choosing between one’s heart and lungs. [FULL STORY]