Chinese People's Republic

"Republic of China" (Taiwan)

United States





China wars


The Chinese Civil War did not end in 1949 but only paused. Taiwan represents the then losing side. Several Islands close to the mainland are still controlled by Taiwan.

China threatens to attack if Taiwan declares formal independence.

However, until recently a deterrent would have been that they would lose Taiwan's money needed for investment. The growth in mainland China's economy suggests that Taiwan's capital is less necessary now (2006).

The United States is involved because the US has guaranteed the security of Taiwan in the past. However, the US is now dependent on China.

China has re-stated as official policy that they will not tolerate a declaration of formal independence by Taiwan, which they regard as a part of China, temporarily separated.

As China becomes richer and more powerful, largely at the expense of the United States, its government becomes more emphatic about its desire not to see Taiwan become formally independent. In February the Chinese protested about the US contract to provide modern weapons to Taiwan. In what might have been a retaliation the Chinese sold US Treasury Bonds, part of the US indebtedness to China. If they sold more, the US could become bankrupt.

Last revised 20/02/10


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