Speaking at the World Economic Forum in Davos, Switzerland, Blinken called Taiwan's weekend election won by Lai Ching-te a "powerful affirmation of democracy".
Pointing to the massive flow of commerce through the Taiwan Strait, Blinken said: "If that were to be disrupted, it would affect the entire planet. And it's about the last thing we need, especially coming back from Covid."
He noted Taiwan's role as a major producer of advanced semiconductors.
"Taiwan plays an outsized role in the world. That's why so many countries have a stake in preserving peace in preserving stability," Blinken said.
China claims the island of Taiwan, and has not ruled out seizing the self-governing democracy by force.
It has denounced Lai, who in the past has stressed Taiwan's unique identity, and voiced opposition to President Joe Biden sending an "unofficial" delegation to Taipei to follow up on the election.
While Taiwan is not diplomatically recognised by the United States, Washington is a partner and its top weapons provider.
US officials privately say that, despite the sharp tone of Beijing, its reaction to the Taiwan election has not escalated to unexpected levels, following an easing of US-China tensions over the past year.
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