	Overview: Policy Interests and Issues

The purpose and scope of this CRS report is to provide a succinct overview with analysis of the major issues in the U.S. policy on Taiwan. Taiwan has been of significant security, economic, and political interest to the United States. While the United States does not diplomatically recognize Taiwan, it is an important autonomous actor in the world. Today, 22 countries including the Vatican have diplomatic relations with Taiwan as the Republic of China (ROC). In what many observers consider as a model democracy, Taiwan's 23 million people enjoy self-governance with free, multi-party elections. In 2013, Taiwan was the 12 th -largest U.S. trading partner and the 7 th -largest export market for U.S. agricultural products. As a critical concern, the United States has interests in the ties or tension across the Taiwan Strait, which affect international security (with potential U.S. intervention), the U.S.-Taiwan relationship, and U.S.-PRC cooperation. U.S. policy seeks a cooperative relationship with a rising PRC, which opposes U.S. arms sales and other official dealings with Taiwan as interference in its internal affairs in unifying with Taiwan as a part of China. President Ma Ying-jeou has sought U.S. support, including arms sales, for Taiwan's stronger position to sustain cross-strait talks. In any case, Washington and Taipei have put more efforts into their respective relations with Beijing, while contending that they have pursued a parallel, positive U.S.-Taiwan relationship. Is the Administration effectively encouraging Taiwan to play a helpful, peaceful, and stabilizing role in maritime disputes in the East and South China Seas? Historical Background

Taiwan formally calls itself the Republic of China (ROC), tracing its political lineage to the ROC set up after the revolution in 1911 in China. The United States has maintained a non-diplomatic relationship with Taiwan after recognition of the PRC in 1979. The Taiwan Relations Act (TRA) of April 10, 1979, P.L. 96-8 , has governed policy in engagement with Taiwan in the absence of a diplomatic relationship or a defense treaty. President Reagan offered " Six Assurances " to Taipei on July 14, 1982, that in negotiating the third Joint Communiqué with the PRC, the United States: (1) has not agreed to set a date for ending arms sales to Taiwan; (2) has not agreed to hold prior consultations with the PRC on arms sales to Taiwan; (3) will not play any mediation role between Taipei and Beijing; (4) has not agreed to revise the Taiwan Relations Act; (5) has not altered its position regarding sovereignty over Taiwan; and (6) will not exert pressure on Taiwan to negotiate with the PRC. (Also see CRS Report RL30341, China/Taiwan: Evolution of the "One China" Policy—Key Statements from Washington, Beijing, and Taipei , by [author name scrubbed].) National Security

Questions also have arisen about Taiwan's reviews of technology transfers to the PRC and any national security implications of increasing PRC investments in Taiwan, including how Taiwan's review of PRC investments compares with the U.S. security review by the Committee on Foreign Investment in the United States (CFIUS) and how Taiwan's Ministry of Economic Affairs (MOEA) is cooperating with the PRC's Ministry of Industry and Information Technology (MIIT). Nonetheless, policy issues have included whether the Administration has ambitious objectives to achieve in engaging with Taipei, has timed arms sales and certain other actions out of concern about the potential reaction from Beijing, strengthened ties with Taiwan in the months before the elections in January 2012 to favor President Ma of the KMT, has been effective in encouraging Taiwan to invest more in defense, or has included Taiwan in the strategic "rebalance" to Asia. For years, the United States and Taiwan sought to resume trade talks under the Trade and Investment Framework Agreement (TIFA), or TIFA talks. However, Taiwan's restrictions on U.S. beef raised concerns. On the 20 th anniversary of the Taiwan Policy Review of 1994, Representative Ed Royce, Chairman of the House Foreign Affairs Committee, led a total of 29 Members to send a letter, on September 23, 2014, to Secretary of State John Kerry, calling for expanding engagement with Taiwan. S. 1683 became P.L. 113-276 on December 18. H.R. (Also see CRS Report RL30957, Taiwan: Major U.S. Arms Sales Since 1990 , by [author name scrubbed].) Minor parties and an independent won the remaining 9 seats. Restoring Trust and Resolving Disputes (Beef and Pork)

Taiwan has another window for greater attention to governance, between the local elections on November 29, 2014, and the presidential and legislative elections in early 2016. Some issues are summarized below. BIA . Legislation in the 113th Congress

H.J.Res. H.R. H.R. 1151 (Royce)/ P.L. H.R. H.R. H.R. H.R. 3979 / P.L. 113-291 . H.R. H.Con.Res. H.Con.Res. H.Con.Res. H.Res. H.Res. 3470 . H.Res. H.Res. S.J.Res. S.Res. S.Res.
This CRS Report, updated through the 113th Congress, provides an overview with analysis of the major issues in U.S. policy on Taiwan. Taiwan formally calls itself the Republic of China (ROC), tracing its political lineage to the ROC set up after the revolution in 1911 in China. The ROC government retreated to Taipei in 1949. The United States recognized the ROC until the end of 1978 and has maintained a non-diplomatic relationship with Taiwan after recognition of the People's Republic of China (PRC) in 1979. The Taiwan Relations Act (TRA) of 1979, P.L. 96-8, has governed policy in engagement with Taiwan in the absence of a diplomatic relationship or a defense treaty. Other key statements of policy are the three U.S.-PRC Joint Communiqués of 1972, 1979, and 1982; and the "Six Assurances" of 1982. (CRS Report RL30341, China/Taiwan: Evolution of the "One China" Policy—Key Statements from Washington, Beijing, and Taipei.)
For decades, Taiwan has been of significant security, economic, and political interest to the United States. In 2013, Taiwan was the 12th-largest U.S. trading partner. Taiwan is a major innovator and producer of information technology (IT) products, many of which are assembled in the PRC by Taiwan-invested firms there. Ties or tension across the Taiwan Strait affect international security (with potential U.S. intervention). While the United States does not diplomatically recognize Taiwan, it is an important autonomous actor. Today, 22 countries have diplomatic relations with Taiwan as the ROC. Taiwan's 23 million people enjoy self-governance with democratic elections. Democracy has offered people a greater say in Taiwan's status, given competing politics about Taiwan's national identity and priorities. Belonging to the Kuomintang (KMT), or Nationalist Party, President Ma Ying-jeou won elections in 2008 and 2012 against the Democratic Progressive Party's (DPP's) candidate. The KMT also won a majority of the seats in the Legislative Yuan (LY). In 2014, the Ma Administration faced challenges from the student-led Sunflower Movement in concluding a trade deal with the PRC. The KMT faced major defeats in the local elections on November 29, when many people voted against its domestic policies.
Since Taiwan and the PRC resumed their quasi-official dialogue in 2008 under President Ma and cross-strait tension decreased, some have stressed the need to take steps by the United States and by Taiwan to strengthen cooperation to advance U.S. interests. Another approach has viewed closer cross-strait engagement as allowing U.S. attention to shift to expand cooperation with a rising China, which opposes U.S. arms sales to and other dealings with Taiwan, and Taiwan's independence. Washington and Taipei have put more efforts into their respective relations with Beijing, while contending that they have pursued positive, parallel U.S.-Taiwan cooperation.
President Ma has sought U.S. support, including for Taiwan's inclusion in the U.S. strategic "rebalance" to the Asia-Pacific, international organizations, talks on maritime disputes in the East and South China Seas, and the Trans-Pacific Partnership (TPP). Other policy issues are whether and when to approve arms sales, and how to bolster economic cooperation and resolve disputes, such as through the Trade and Investment Framework Agreement (TIFA) talks (last held in April 2014). The United States has been concerned about Taiwan's restrictions on U.S. beef and pork, even as Taiwan has claimed attention to international organizations and standards. Taiwan has proposed a bilateral investment agreement (BIA). On September 23, 2014, 29 Members in the House sent a letter to the Secretary of State, calling for expanding engagement with Taiwan.
Legislation in the 113th Congress includes H.J.Res. 109, H.R. 419, H.R. 772, H.R. 1151 (P.L. 113-17), H.R. 1960, H.R. 3470, H.R. 3979 (P.L. 113-291), H.R. 4435, H.R. 4495, H.Con.Res. 29, H.Con.Res. 46, H.Con.Res. 55, H.Res. 185, H.Res. 494, H.Res. 704, H.Res. 714, S. 12, S. 579, S. 1197, S. 1683 (P.L. 113-276), S. 2410, S.J.Res. 31, S.Res. 167, and S.Res. 412. (See also CRS Report RL30957, Taiwan: Major U.S. Arms Sales Since 1990.)