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AN INDEPENDENT STUDENT NEWSPAPER SERVING THE GW COMMUNITY SINCE 1904

The GW Hatchet

Serving the GW Community since 1904

The GW Hatchet

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Officials name senior vice president, chief of staff
By Fiona Riley, Assistant News Editor • March 26, 2024

Alum-ambassador examines China-Taiwan relationship

Ambassador James Lilley spoke about the relationship between China and Taiwan and the United States’ role in that relationship during a luncheon with about 100 people Friday.

A GW alumnus and the former U.S. ambassador to the People’s Republic of China and the Republic of Korea, Lilley spoke as part of the Sigur Center’s conference on East Asian Security and Taiwan.

“Decisions are being made by businesses, and not by governments,” Lilley said in 1957 E Street’s City View Room, adding that when it comes to cross-strait dialogue, business managers are playing a strong role in the increase of trade and investment, even though their governments may disagree.

Strategically, Lilley said, the Chinese and the U.S. have different views on why Taiwan is important. China believes that if Taiwan falls into foreign hands it would become a launching point for any attack against China, Lilley said.

On the other hand, Lilley said, the West believes that Taiwan is simply part of a flanking maneuver on Japan and China’s expansion to other islands in the Pacific.

Lilley said to “follow the money” concerning cross-strait dialogue. Taiwan is now moving businesses into China, something Lilley said many swore they would never do 20 years ago. U.S. investors are also considering banking options in the area, Lilley said.

“You aren’t going to go in and howl about currency manipulation,” Lilley said. “But, (U.S. Treasury Secretary Henry) Paulson can go in and begin to help bring in free markets.” This could eventually force a reevaluation of China’s currency, which is said to be undervalued.

Lilley also stressed the importance of arms sales to Taiwan, since calculated arms sales help Taiwan defend itself while not provoking China. Lilley criticized a $60 billion arms sale in 2001, because he did not believe it was calculated. It should have been spread out, he said.

“Arms sales reestablish balance and keep the peace,” Lilley said.

Earlier in the conference there was a “U.S.-Japan-China Strategic Interactions” session as well as a China-Taiwan Cross-Strait Relations session.

“We want to look at issues of East Asian security and appeal to both those focused on Taiwan and the big picture,” said Shawn McHale, director of the Sigur Center for Asian Studies.

McHale said the Sigur Center wanted to have some of the best individuals in this area shed some light on the changing security situation in East Asia.

“We want to be an academic voice on these issues,” McHale said. “We want to bring some light to these issues.”

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