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Summary

Policy toward and support for Taiwan are a key element in U.S.- relations with the People's Republic of China (PRC) and an important component of U.S. policy in Asia. Official U.S. relations with the Republic of China (ROC) government on Taiwan became a casualty of the U.S. decision to recognize the PRC government as China's sole legitimate government. Since then, unofficial U.S. relations with Taiwan have been built on the framework of the 1979 Taiwan Relations Act (TRA – P.L. 96-8) and shaped by three U.S.-PRC communiques. Under these, the United States maintains official relations with the PRC, but continues to have unique and critical interests in Taiwan, including significant commercial ties, objections to PRC threats to use force against Taiwan, arms sales and security assurances, and support for Taiwan's democratic development. U.S. policy today remains rooted in a general notion of maintaining the "status quo" between Taiwan and the PRC. But other factors have changed dramatically since 1979, including growing PRC power and importance, Taiwan's democratization, and the deepening of Taiwan-PRC economic and social linkages. These changes have led to periodic discussions about the efficacy of current U.S. policy and whether or not it should be reviewed or changed. Taiwan's current president, Ma Ying-jeou, elected in March 2008, moved quickly to jump start Taiwan-PRC talks that had been stalled since 1998. The talks to date have yielded a number of agreements, including agreements to establish regular direct weekend charter flights, direct sea and air transportation, postal links, and food safety mechanisms. Taiwan also has lifted long- standing caps on Taiwan investment in the PRC and lowered the profile of its bids for participation in U.N. agencies. These and other initiatives are welcomed by many as having contributed to greater regional stability. More pessimistic observers see growing PRC-Taiwan ties eroding U.S. influence, strengthening PRC leverage and, particularly in the face of expanding economic links, jeopardizing Taiwan autonomy and economic security. The changing dynamic between Taiwan and the PRC poses increasingly difficult, competing policy challenges for the United States. Along with new policy challenges – such as what U.S. policy should be if Taiwan should continue to move closer to or even align with the PRC – the Obama Administration will be faced with other challenges familiar from past years, including decisions on new arms sales to Taiwan, which are anathema to the PRC; how to accommodate requests for visits to the United States by President Ma and other senior Taiwan officials; the overall nature of U.S. relations with the Ma government; whether to pursue closer economic ties with Taiwan; what role, if any, Washington should play in cross-strait relations; and more broadly, what form of defense assurances to offer Taiwan. In addition, the Taiwan government also is seeking to raise its international profile in other ways involving the United States. Taiwan is seeking to be removed from the U.S. Special 301 "Watch List" for intellectual property rights violations, and is seeking to qualify for the U.S. Visa Waiver Program (VWP), which eliminates some visa requirements for qualified countries. The Taiwan government also continues to ask for a U.S.-Taiwan Free Trade Agreement (FTA), which would broaden the current avenue for U.S.- Taiwan trade discussions, the 1994 Trade and Investment Framework (TIFA). Legislation in the 111 Congress concerning Taiwan includes H.Con.Res. 18, urging that the United States resume diplomatic relations with Taiwan; and H.Con.Res. 55, expressing U.S. support for and commitment to Taiwan. This report will be updated as events warrant.

Related Legislation:
• S.18
• S.55

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