Despite apparently consistent statements in over three decades, the "one China" policy concerning Taiwan remains somewhat ambiguous and subject to different interpretations. Questions have arisen about the policy itself and about the policy in relation to U.S. interests regarding peace and stability. This report discusses U.S. policy on the "one China" policy in regards to three major issues: sovereignty, use of force, and cross-strait dialogue. Since the mid-1990s, U.S. interests in preventing conflict across the Taiwan Strait have been challenged by China's military modernization and Taiwanese moves toward independence that have been perceived in Beijing as provocative. This report describes these issues in detail, including relevant legislation.

In Part I, this CRS report discusses the policy on “one China” since the United States began in 1971 to reach understandings with the People’s Republic of China (PRC) government in Beijing. Part II documents the evolution of the “one China” principle as articulated in key statements by Washington, Beijing, and Taipei. The U.S. policy on “one China” has evolved to cover three issues: sovereignty, peaceful resolution, and cross-strait dialogue.