Taiwan's Political Status: Historical Background and Ongoing Implications

In 1979, official U.S. relations with Taiwan the Republic of China became a casualty of the American decision to recognize the government of the Peoples Republic of China PRC as Chinas sole legitimate government. Since then, U.S. unofficial relations with Taiwan have been built on the framework of the Taiwan Relations Act P.L. 96-8 and shaped by three U.S.-China communiques. Under these agreements, the United States maintains its official relations with the PRC while selling Taiwan military weapons and having extensive economic, political, and security interests there. But developments in both the PRC and Taiwan political systems mean U.S. officials continually are facing new policy choices. These developments include ongoing transformations in both Taiwans and the PRCs political systems, economic and trade cycles and, in 2008, a renewal of the long-stalled contacts, talks, and agreements between the two sides. This report, intended as a background overview, briefly summarizes U.S. political history with Taiwan and discusses the complications it has for current U.S. policy and for congressional actions. For analysis of current developments in Taiwan and their implications for U.S. policy, see CRS Report R40493, Taiwan-U.S. Relations Developments and Policy Implications, by Kerry Dumbaugh.