Definition of Taiwan The act does not recognize the terminology of "Republic of China" after 1 January 1979, but uses the terminology of "governing authorities on Taiwan". Geographically speaking and following the similar content in the earlier
defense treaty from 1955, it defines the term "Taiwan" to include, as the context may require, the
island of Taiwan (the main Island) and the
Pescadores (Penghu). Of
the other islands or archipelagos under the control of the Republic of China,
Kinmen, the
Matsus, etc., are left outside the definition of Taiwan.
De facto diplomatic relations The act authorizes
de facto diplomatic relations with the governing authorities by giving special powers to the AIT to the level that it is the
de facto embassy, and states that any international agreements made between the ROC and U.S. before 1979 are still valid unless otherwise terminated. One agreement that was
unilaterally terminated by President
Jimmy Carter upon the establishment of relations with the PRC was the
Sino-American Mutual Defense Treaty. The TRA provides for Taiwan to be treated under U.S. laws the same as "
foreign countries,
nations,
states,
governments, or similar entities", thus treating Taiwan as a sub-sovereign foreign state equivalent. The act provides that for most practical purposes of the U.S. government, the
absence of diplomatic relations and
recognition will have no effect.
Military provisions The TRA does not guarantee or relinquish the U.S. intervening militarily
if the PRC attacks or invades Taiwan, as its primary purpose is to ensure that the Taiwan policy will not be changed unilaterally by the U.S. president and ensure any decision to defend Taiwan will be made with the consent of the Congress. The act states that "
the United States will make available to Taiwan such defense articles and defense services in such quantity as may be necessary to enable Taiwan to maintain a sufficient
self-defense capability" and "shall maintain the capacity of the United States to resist any resort to force or other forms of coercion that would jeopardize the
security, or
social or
economic system, of the people on Taiwan". However, the decision about the nature and quantity of defense services that America will provide to Taiwan is to be determined by the President and Congress. America's policy has been called "
strategic ambiguity," and it is designed to dissuade Taiwan from a unilateral
declaration of independence, and to dissuade the PRC from
unilaterally unifying Taiwan with the PRC. The TRA further stipulates that the United States will "consider any effort to determine the future of Taiwan by other than peaceful means, including by
boycotts or
embargoes, a threat to the
peace and
security of the
Western Pacific area and of grave concern to the United States". The TRA requires the United States to have a policy "to provide Taiwan with
arms of a
defensive character" and "to maintain the capacity of the United States to resist any resort to force or other forms of
coercion that would jeopardize the security, or the social or economic system, of the people on Taiwan". Successive U.S. administrations have sold arms to Taiwan despite demands from the PRC that the U.S. follow
Three Joint Communiqués and the U.S. government's proclaimed
One-China policy. ==Reaction and reaffirmation==