Abstract
This paper aims to analyze the United States and China rivalry which impacts their relationship with Historical Complexity of Taiwan using the Balance of Threat Theory and qualitative research method. Both the United States and China have different perspectives on the Taiwan issue. China considers that historically Taiwan is part of China. However, the disintegration that Taiwan faces makes some Taiwanese people not feel part of China. This incident was later used by the United States in intervening and expanding its influence in the East Asia region since the 1950s. As a result, the Taiwan area has become a battleground for the United States and China as they compete for regional influence. The Taiwan Relations Act (TRA) in 1979, provides Washington a legal framework to continue selling weapons to Taiwan. On the other hand, Beijing took the initiative to open a free market with Taipei under the Cross-Strait Service Trade Agreement (CSSTA) in 2013. This paper suggests that both Beijing and Washington have always refrained from escalating into an open conflict that ended in war. Thus, a future war is unlikely.
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