ABSTRACT
Until very recently, the Taiwan issue had become so quiescent that it was easy to forget that just a few years earlier Taiwan had been at the forefront of worries about a possible outbreak of conflict in East Asia. Under the leadership of Chen Shui-bian and his Democratic Progressive Party (DPP) during the period from 2000 to 2008, Taiwan pursued measures to increase its de facto independence from mainland China and lay the foundation for a more formal separation. Taiwan was an especially significant component in Washington's Cold War strategy against communist China. The United States faces some difficult choices regarding its Taiwan policy. Since 1979 US officials have generally preferred a course of "strategic ambiguity". In addition to the trade relationship, China has now become a major source of financial support for the United States, holding more than $1.185 trillion in US Treasury debt.
