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What is One China Policy? | CNBC Explains

What is One China Policy? | CNBC Explains


In those words President Donald Trump, the
leader of the free world, is walking a highly sensitive diplomatic tightrope. Not to be confused with China’s ‘One China
Principle’ or even the ‘One Child Policy,’ the ‘One China Policy’ is Washington’s
diplomatic acknowledgement that the People’s Republic of China is the one and only Chinese
government. In other words, the US recognizes and has
formal ties with officials in Beijing rather than those in Taiwan. For 40 years this fine balancing act of diplomacy
has held steady, but then, on December 2nd 2016 a single phone call threatened to change
everything when then President-elect Trump spoke, for just for a few minutes, to Taiwan’s President,
Tsai Ing-wen. Four relatively quiet decades of Sino-U.S.
relations was suddenly thrown into the spotlight. The ‘One China Policy’ can be traced back
to 1949 and the end of the Chinese Civil War. The defeated nationalists retreated to Taiwan
while the communists began ruling the mainland. Both claimed to represent all of China. Washington officially backed the Republicans
– recognizing officials in Taiwan as China’s true government, but then in 1972 all that
changed. Towards the end of the Vietnam War, Richard
Nixon became the first US president to ever visit the People’s Republic of China. His visit ended 25 years of hostilities, and
as well as opening up lucrative trade deals, it also swung a significant pendulum in the
Cold War – it helped place China’s Communists on friendly terms and thus put more pressure on
the Communists in the Soviet Union. But in order to secure the diplomatic relations
Beijing insisted Washington had to break official ties with Taiwan. Seven years of negotiations later, in 1979
President Jimmy Carter closed the US embassy in Taipei and formally recognized the Communist
party in Beijing as the One and only Party governing over China. Although now in place – the one-party policy
didn’t end Washington’s relationship with Taiwan. In 1979 the US enacted the Taiwan Relations
Act – setting up non-diplomatic relations and promising to help the island defend itself
from outside aggression. The act also meant trade between the two could
continue; and to the annoyance of Beijing, Washington has been selling arms to Taiwan
ever since. As for the rest of the world., most countries did the same as the US: recognizing
Beijing as the official government of China, while keeping informal relations with Taiwan. A few countries, especially in Africa and
Central Asia only recognize Beijing, while fewer still only recognize Taiwan as China’s
official government. Despite its diplomatic isolation, Taiwan has
prospered. It now has the fifth largest economy in Asia
with a GDP worth nearly 530 billion dollars. Still that’s nothing compared to China’s
GDP of 11 Trillion and its trade relationship with the US that’s worth over 650 billion
dollars a year, which is why so many analysts are worried about President Trump’s seemingly
nonchalant attitude when it comes to Washington’s ‘One China Policy’.

16 comments on “What is One China Policy? | CNBC Explains

  1. This is the solid proof Chinese commies bribes reaches everywhere. One China Policy is communist Chinas invention. No one cares what communists think. Taiwan is a independent nation. No negotiations on that fact

  2. I'd love to see them try taking Taiwan. They'll fucking get buried with American nukes. Just watch them try. 🙂

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