Updated January 16, 2024
Taiwan: Background and U.S. Relations
Introduction
China. In 1971, U.N. General Assembly (UNGA)
Resolution 2758 recognized the PRC’s representatives as
Taiwan, which calls itself the “Republic of China, Taiwan,”
“the on
is a self-governing democracy of 23.5 million people
ly legitimate representatives of China to the United
Nations,” and expelled “the representatives of Chiang Kai
located across the Taiwan Strait from mainland China. The
-
shek,” the ROC’s
United States terminated diplomatic relations with the
then-leader. In a December 1978 U.S.-
Republic of China (ROC) on January 1, 1979, in order to
PRC joint communiqué, the United States, too, recognized
the PRC as “the sole legal
establish diplomatic relations with the People’s Republic of
Government of China.”
China (PRC), which claims sovereignty over Taiwan. U.S.
The ruling Kuomintang (KMT) party maintained martial
relations with Taiwan have been unofficial since that date.
law on Taiwan until 1987, when it yielded to public
In establishing relations with the PRC, the U.S. government
pressure for political liberalization. The 2016 inauguration
agreed to withdraw U.S. military personnel from Taiwan
of President Tsai Ing-wen of the Democratic Progressive
and terminate the U.S.-ROC Mutual Defense Treaty, as of
Party (DPP) marked Taiwan’s third peaceful transfer of
January 1, 1980. The 1979 Taiwan Relations Act (TRA,
political power between political parties.
P.L. 96-8; 22 U.S.C. §3301 et seq.) provides a legal basis
for unofficial relations.
January 2024 Elections
Taiwan held presidential and legislative elections on
In its most recent fact sheet on U.S. relations with Taiwan,
January 13, 2024. After two four-year terms in office,
issued in May 2022, the U.S. State Department refers to the
President Tsai was term-limited and ineligible to run again.
United States and Taiwan as enjoying “a robust unofficial
relationship.” The
Vice President Lai Ching-te and Taiwan’s former unofficial
fact sheet describes Taiwan as “a key
representative to the United States, Bi-khim Hsiao, ran as
U.S. partner in the Indo-Pacific,” and states that the United
States and Taiwan “
the DPP ticket and won a three-way race for the presidency
share similar values, deep commercial
and vice-presidency, with 40.05% of the vote. The DPP is
and economic links, and strong people-to-people ties.”
the first party to win a third consecutive presidential term
Figure 1. Taiwan
since Taiwan first held direct presidential elections in 1996.
Lai and Hsiao are to be inaugurated on May 20.
In the January 2024 elections for Taiwan’s legislature, the
113-seat Legislative Yuan (LY), no party won an absolute
majority, the first such outcome since 2004. The DPP held
the majority from 2016 to 2024. The KMT, now Taiwan’s
leading opposition party and supportive of closer ties with
the PRC, won 52 LY seats, to the DPP’s 51. The Taiwan
People’s Party (TPP), founded in 2019 with the goal of
challenging the dominance of the DPP and KMT, won 8
LY seats. Independents won the remaining 2 seats. The new
LY is to be seated on February 1.
On the campaign trail, now-President-elect Lai pledged
continuity with President Tsai’s policies, though divided
government could make it harder for him to implement his
policies. Lai’s platform included maintenance of the cross-
Strait status quo through adherence to “four commitments”
that Tsai first articulated in 2021. They are a commitment

(1) to “a free and democratic constitutional system,” (2) to
Sources: Graphic by CRS.
the principle that “the Republic of China and the People’s
Republic of China should not be subordinate to each other,”
Modern History
(3) “to resist annexation or encroachment upon our
Taiwan was a colony of Japan from 1895 to 1945. The
sovereignty,” and (4) to the principle that “the future of the
government of the ROC, then based on mainland China,
Republic of China (Taiwan) must be decided in accordance
assumed control of Taiwan in 1945, after Japan’s defeat in
with the will of the Taiwanese people.” The PRC, which
World War II. In 1949, after the forces of the Communist
insists that Taiwan is part of China, has assailed the second
Party of China (CPC) wrested control of mainland China
of those commitments as implying that the relationship
from ROC forces in a civil war, the ROC government
between the PRC and Taiwan is akin to “two states.” Three
retreated to Taiwan. After the establishment of the PRC on
days before the election, a spokesperson for the PRC’s
mainland China, the United States continued to recognize
Taiwan Affairs Office warned Taiwan voters that Tsai’s
the ROC government on Taiwan as the government of all
policies were “a route to ‘Taiwan independence,’” and that
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Taiwan: Background and U.S. Relations
by following them, Lai would bring Taiwan “closer to war
means and other necessary measures to protect China’s
and recession.” The spokesperson urged voters to reject Lai.
sovereignty and territorial integrity.”
U.S. Policy Toward Taiwan
Beijing cut off communication with Taiwan’s government
in 2016, citing President Tsai’s unwillingness to endorse a
Since 1979, U.S. government policy has been to follow
formula known as “the 1992 consensus.” The KMT-CPC
what U.S. officials refer to as a “one-China policy” with
consensus held that Taiwan and mainland China are parts of
regard to Taiwan. The PRC has repeatedly stated that it
“one China,” with different interpretations of what “China”
regards U.S. implementation of that policy as the most
means. The PRC has given no indication that it intends to
sensitive issue in U.S.-China relations. The Biden
restore communication with Taiwan under a President Lai.
Administration describes the U.S. one-China policy as
guided by (1) the TRA; (2) U.S.-PRC joint communiqués
The PRC has sought to isolate Taiwan internationally. After
concluded in 1972, 1978, and 1982; and (3) “Six
the January 2024 election, Nauru became the 11th country to
Assurances” that President Ronald Reagan communicated
switch diplomatic relations from Taiwan to the PRC since
to Taiwan’s government in 1982. (See CRS In Focus
2016, leaving 12 countries that maintain diplomatic
IF12503, Taiwan: The Origins of the U.S. One-China
relations with Taiwan as the Republic of China. The PRC
Policy, and CRS In Focus IF11665, President Reagan’s Six
government has also worked to exclude Taiwan from U.N.
Assurances to Taiwan.)
agencies, asserting that UNGA Resolution 2758 “confirmed
that Taiwan is a part of China.” In the 118th Congress,
Key provisions of the TRA include the following:
House-passed H.R. 1176 would amend the TAIPEI Act of
• U.S. relations with Taiwan shall be carried out through
2019 (P.L. 116-135) to state that Resolution 2758 “did not
the American Institute in Taiwan (AIT), a private
address the issue of representation of Taiwan and its people
corporation. (AIT Taipei performs many of the same
in the United Nations or any related organizations,” or
functions as U.S. embassies elsewhere.)
“include any statement pertaining to Taiwan’s sovereignty.”
•
U.S. policy is to support Taiwan’s membership in
The United States “will make available to Taiwan such
international organizations that do not require statehood for
defense articles and defense services in such quantity as
their members, and its “meaningful participation” in
may be necessary to enable Taiwan to maintain a
organizations in which membership is not possible. The
sufficient self-defense capability.”
House-passed Taiwan Non-Discrimination Act (H.R. 540)
• It is U.S. policy “to maintain the capacity of the United
would require U.S. support for Taiwan’s membership in the
States to resist any resort to force or other forms of
International Monetary Fund, a financial agency of the U.N.
coercion that would jeopardize the security, or the social
that confines membership to countries.
or economic system, of the people on Taiwan.”
Taiwan’s Security
The TRA creates “strategic ambiguity” by not specifying
CIA Director William J. Burns stated in February 2023 that
whether the United States would defend Taiwan in the
Xi Jinping has instructed the PLA to “be ready” to “conduct
event of a PRC attack. Since 2021, President Biden has four
a successful invasion” of Taiwan by 2027, but added, “that
times stated that the United States would defend Taiwan,
does not mean that he’s decided to conduct an invasion.”
appearing to abandon strategic ambiguity, although White
As the PRC has stepped up its military activities near
House officials later said U.S. policy remained unchanged.
Taiwan, U.S.-Taiwan defense cooperation has grown
On the eve of the 2024 Taiwan election, a senior Biden
closer. Since 2023, the defense relationship has included
Administration official said President Biden had earlier
U.S. security assistance. (See CRS In Focus IF12481,
outlined U.S. policy to his PRC counterpart, Xi Jinping, as:
Taiwan: Defense and Military Issues.)
“[W]e oppose any unilateral changes to the status quo from
U.S.-Taiwan Economic Ties
either side. We do not support Taiwan independence. We
support cross-Strait dialogue, and we expect cross-Strait
Taiwan was the 8th-largest U.S. trading partner in 2022.
differences to be resolved by peaceful means, free from
Taiwan is a key link in U.S. global semiconductor and
coercion, in a manner that is acceptable to the people on
technology supply chains and the global center for the
both sides of the Strait. We do not take a position on the
production of advanced chips. In June 2023, the United
ultimate resolution of cross-Strait differences, provided
States and Taiwan signed the first agreement under a U.S.-
they are resolved peacefully.”
Taiwan Initiative on 21st Century Trade. (See CRS In Focus
IF10256, U.S.-Taiwan Trade Relations.)
PRC Policy Toward Taiwan
Taiwan and the U.S. Congress
At the CPC’s 20th Party Congress in October 2022, Xi
Jinping referred to unification with Taiwan as necessary for
Congress has long sought to promote closer U.S.-Taiwan
“the rejuvenation of the Chinese nation.” He reiterated the
relations. In the 118th Congress, legislation enacted into law
CPC’s preference for peaceful unification, and its proposal
includes the United States-Taiwan Initiative on 21st-Century
for a “One Country, Two Systems” approach to governance
Trade First Agreement Implementation Act (P.L. 118-13)
of Taiwan. Xi also restated that the CPC “will never
and the National Defense Authorization Act for FY2024
promise to renounce the use of force” to unify with Taiwan.
(P.L. 118-31). The latter includes provisions related to
The PRC’s Anti-Secession Law, passed in 2005, states that
security cooperation with Taiwan and a requirement for an
in the case of Taiwan’s “secession” from China, or if the
independent study of the global economic impact of a PRC
PRC concludes that possibilities for peaceful unification
military invasion of Taiwan or coercive actions against
have been exhausted, “the state shall employ non-peaceful
Taiwan short of an invasion.
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Taiwan: Background and U.S. Relations

IF10275
Susan V. Lawrence, Specialist in Asian Affairs


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https://crsreports.congress.gov | IF10275 · VERSION 77 · UPDATED

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