Updated May 23, 2024
Taiwan: Background and U.S. Relations
Introduction
the government of all China. In 1971, U.N. General
Taiwan, which also calls itself the Republic of China
Assembly Resolution 2758 recognized representatives of
(ROC), is a self-governing democracy of 23.4 million
the PRC as “the only legitimate representatives of China to
people located across the Taiwan Strait from mainland
the [U.N.],” and expelled “the representatives of Chiang
China. The United States terminated diplomatic relations
Kai-shek,” the ROC’s then-leader. In a December 15, 1978
with the ROC on January 1, 1979, in order to establish
U.S.-PRC communiqué, the United States recognized the
diplomatic relations with the People’s Republic of China
PRC government as “the sole legal Government of China.”
(PRC), which claims sovereignty over Taiwan. At that time,
The KMT enforced martial law on Taiwan from 1949 to
the U.S. government also agreed to withdraw U.S. military
1987, when the party yielded to public pressure for political
personnel from Taiwan and terminate a U.S.-ROC Mutual
liberalization. Taiwan held its first direct election for the
Defense Treaty, and stated that it would henceforth
legislature, the Legislative Yuan (LY), in 1992, and its first
maintain “cultural, commercial, and other unofficial
direct election for president in 1996.
relations with the people of Taiwan.” The 1979 Taiwan
Relations Act (TRA, P.L. 96-8; 22 U.S.C. §§3301 et seq.)
2024 Political Transition
provides a legal basis for unofficial relations.
Taiwan held presidential and legislative elections in
January 2024. Lai Ching-te (William Lai) of the
In its most recent fact sheet on U.S. relations with Taiwan,
Democratic Progressive Party (DPP) won the presidency
issued in May 2022, the U.S. State Department refers to the
with 40.05% of the vote in a three-way race. He and Vice
United States and Taiwan as enjoying “a robust unofficial
relationship.” The
President Hsiao Bi-khim, a former unofficial Taiwan
fact sheet describes Taiwan as “a key
representative to the United States, were inaugurated on
U.S. partner in the Indo-Pacific,” and states that the United
States and Taiwan “
May 20, 2024. The DPP is the first party in Taiwan’s
share similar values, deep commercial
history to win a third consecutive presidential term by
and economic links, and strong people-to-people ties.”
direct election. Lai’s predecessor, Tsai Ing-wen of the DPP,
Figure 1. Taiwan
served the maximum two four-year terms allowed, from
2016 to 2024.
The elections produced divided government. The DPP lost
its majority in the 113-seat LY, and no party won a
majority, the first such outcome since 2004. The KMT, now
Taiwan’s leading opposition party and supportive of greater
engagement with the PRC, won 52 seats, to the DPP’s 51.
KMT-aligned independents won 2 seats. The Taiwan
People’s Party (TPP), founded in 2019 with the goal of
challenging the dominance of the DPP and KMT, won 8
seats. In the days before and after Lai’s inauguration, the
KMT and TPP caucuses attempted to leverage their
combined LY majority to advance legal amendments
intended to expand the power of the legislature relative to
the executive. The effort sparked a brawl in the LY and
drew thousands of protestors onto the streets.
On the campaign trail, Lai pledged continuity with Tsai’s
policies. His cabinet includes figures from her

administration in national security roles. Lin Chia-lung is
Source: Graphic by CRS.
foreign minister, succeeding Joseph Wu (Wu Jaushieh),
who now leads the National Security Council, replacing
Modern History
Wellington Koo (Koo Li-hsiung), now defense minister.
Taiwan was a colony of Japan from 1895 to 1945. The
In his inauguration speech, Lai echoed Tsai in stating, as
government of the ROC, then based on mainland China,
she first did in 2021, that, “The Republic of China and the
assumed control of Taiwan in 1945, after Japan’s defeat in
People's Republic of China are not subordinate to each
World War II. In 1949, after the forces of the Communist
other.” Lai added, “All of the people of Taiwan must come
Party of China (CPC) wrested control of mainland China
together to safeguard our nation; all our political parties
from ROC forces in a civil war, the Kuomintang (KMT)-led
ought to oppose annexation and protect sovereignty; and no
ROC government retreated to Taiwan, and the CPC
one should entertain the idea of giving up our national
established the PRC on mainland China. The United States
sovereignty in exchange for political power.”
continued to recognize the ROC government on Taiwan as
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Taiwan: Background and U.S. Relations
A spokesperson for the CPC’s Taiwan Affairs Office
PRC Policy Toward Taiwan
asserted that Lai’s speech was “full of hostility and
At the CPC’s 20th Party Congress in October 2022, PRC
provocation,” and revealed Lai’s “true face of ‘Taiwan
leader Xi referred to unification with Taiwan as necessary
independence,’” meaning support for Taiwan’s permanent
for “the rejuvenation of the Chinese nation.” He reiterated
separation from mainland China. Three days after Lai’s
the CPC’s preference for peaceful unification, and its
inauguration, the PRC’s People’s Liberation Army Eastern
proposal for a “One Country, Two Systems” approach to
Theater Command launched two days of military drills
governance of Taiwan. Xi also restated that the CPC “will
around Taiwan, portraying them “as a strong punishment
never promise to renounce the use of force” to unify with
for the separatist acts of ‘Taiwan independence’ forces and
Taiwan. The PRC’s Anti-Secession Law, passed in 2005,
a stern warning against the interference and provocation by
states that in the case of Taiwan’s “secession” from China,
external forces.” According to a PRC Ministry of Foreign
or if the PRC concludes that possibilities for peaceful
Affairs spokesperson, the PRC made “serious protests” to
unification have been exhausted, “the state shall employ
the United States over a statement from Secretary of State
non-peaceful means and other necessary measures to
Antony J. Blinken congratulating Lai on his inauguration.
protect China’s sovereignty and territorial integrity.”
The spokesperson separately warned against post-
inauguration visits to Taiwan by Members of Congress,
Beijing cut off communication with Taiwan’s government
arguing that, “The U.S. Congress is part of the U.S.
in 2016, citing then-President Tsai’s unwillingness to
government and supposed to strictly adhere to the one-
endorse a KMT-CPC-agreed formula, “the 1992
China policy followed by the U.S.”
consensus.” It holds that Taiwan and mainland China are
parts of “one China,” with different interpretations of what
U.S. Policy Toward Taiwan
“China” means. The PRC has long sought to isolate Taiwan
Since 1979, U.S. government policy has been to follow a
internationally, including by inducing Taiwan’s diplomatic
U.S. “one-China policy” with regard to Taiwan. The Biden
partners to recognize the PRC diplomatically instead. (See
Administration describes this policy as guided by (1) the
CRS In Focus IF12646, Taiwan’s Position in the World.)
TRA; (2) U.S.-PRC joint communiqués concluded in 1972,
Taiwan’s Security
1978, and 1982; and (3) “Six Assurances” that President
In 2023, CIA Director William J. Burns stated that Xi had
Ronald Reagan communicated to Taiwan’s government in
instructed the PLA to “be ready” to “conduct a successful
1982. (See CRS In Focus IF12503, Taiwan: The Origins of
invasion” of Taiwan by 2027,
the U.S. One-China Policy, and CRS In Focus IF11665,
but added, “that does not
President Reagan’s Six Assurances to Taiwan.)
mean that he’s decided to conduct an invasion.” (See CRS
In Focus IF12481, Taiwan: Defense and Military Issues and
Key provisions of the TRA include the following:
CRS Report R48044, Taiwan Defense Issues for Congress.)
• U.S. relations with Taiwan shall be carried out through
U.S.-Taiwan Economic Ties
the American Institute in Taiwan (AIT), a private
Taiwan was the eighth-largest U.S. trading partner in 2023.
corporation. (AIT Taipei performs many of the same
Taiwan is a key link in U.S. global semiconductor and
functions as U.S. embassies elsewhere.)
technology supply chains and the global center for the
• The United States “will make available to Taiwan such
production of advanced chips. In June 2023, the United
defense articles and defense services in such quantity as
States and Taiwan signed the first agreement under a U.S.-
may be necessary to enable Taiwan to maintain a
Taiwan Initiative on 21st Century Trade. (See CRS In Focus
sufficient self-defense capability.”
IF10256, U.S.-Taiwan Trade and Economic Relations.)
• It is U.S. policy “to maintain the capacity of the United
Taiwan and the 118th Congress
States to resist any resort to force or other forms of
In the 118th Congress, enacted legislation related to Taiwan
coercion that would jeopardize the security, or the social
includes the United States-Taiwan Initiative on 21st-Century
or economic system, of the people on Taiwan.”
Trade First Agreement Implementation Act (P.L. 118-13)
The TRA creates “strategic ambiguity” by not specifying
and the Indo-Pacific Security Supplemental Appropriations
whether the United States would defend Taiwan in the
Act, 2024 (P.L. 118-50). Senate-passed S.J.Res. 62 would
event of a PRC attack. Since 2021, President Biden has four
nullify a rule opening the U.S. market to beef from
times stated that the United States would defend Taiwan;
Paraguay; the White House “strongly opposes” the
White House officials said U.S. policy was unchanged.
measure, in part because of concerns that it could lead
Paraguay to break diplomatic relations with Taiwan. House-
On the eve of Taiwan’s 2024 election, a senior Biden
passed legislation pending in the Senate includes H.R.
Administration official said President Biden had outlined
7024, which would seek to provide relief from U.S.-Taiwan
U.S. policy to his PRC counterpart, Xi Jinping, in
double taxation; the Taiwan Non-Discrimination Act (H.R.
November 2023, as: “[W]e oppose any unilateral changes
540); the Pressure Regulatory Organizations to End
to the status quo from either side. We do not support
Chinese Threats to Taiwan (PROTECT Taiwan) Act (H.R.
Taiwan independence. We support cross-Strait dialogue,
803); H.R. 1159, related to Department of State guidance to
and we expect cross-Strait differences to be resolved by
federal agencies on contacts with Taiwan; and the Taiwan
peaceful means, free from coercion, in a manner that is
International Solidarity Act (H.R. 1176; see also S. 2995).
acceptable to the people on both sides of the Strait. We do
not take a position on the ultimate resolution of cross-Strait
Susan V. Lawrence, Specialist in Asian Affairs
differences, provided they are resolved peacefully.”
IF10275
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Taiwan: Background and U.S. Relations


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https://crsreports.congress.gov | IF10275 · VERSION 82 · UPDATED

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