Between Rhetoric and Reality: Navigating the Taiwan Strait Crisis 

Tensions in the Taiwan Strait are escalating due to intensified military drills, nationalist rhetoric and increased arms support. Maintaining strategic ambiguity, reviving diplomatic frameworks like the 1992 Consensus and fostering dialogue –  particularly through middle powers – are critical to preventing a catastrophic regional war.

Security and Geopolitics

Published: 26th August 2025

Dr Rashad Seedeen
Dr Rashad Seedeen
Senior Research Fellow

Photo: Taiwan's President Lai Ching-te walks with a minelayer during the annual Han Kuang military exercise in Kaohsiung, Taiwan July 14, 2025. REUTERS/Ann Wang

In Brief


  • Taiwan’s military preparedness has intensified, with large-scale drills signalling growing concern over a potential Chinese invasion.

  • The One China framework remains contested, with varying interpretations – One China Principle, One China Policy and the 1992 Consensus.

  • Strategic ambiguity remains the dominant approach for the US and Australia, allowing flexibility without committing to military intervention.

  • Rhetoric from both Beijing and Taipei has escalated tensions, though public opinion in China is divided on the use of force.

  • War games and expert analysis indicate that while China holds a tactical edge, any military conflict would be highly escalatory and costly for all parties involved.

  • Australia has resisted US pressure to pre-commit to conflict, instead advocating for diplomacy and strategic ambiguity as a path to regional stability.


Taiwan Escalates War Readiness

In July, Taiwan conducted its largest and most comprehensive set of military drills to date. Taking place over 10 days, the exercises involved every branch of the military, military police, over 22,000 reservists and a wide range of military technology including Abrams M1A2T tanks, High Mobility Artillery Rocket System (HIMARS) and waterborne drones. These drills saw Taiwan undertake military preparation scenarios in defence against an amphibious landing from a military aggressor. Even though China is not explicitly named as the hypothetical aggressor, the implications are apparent to even casual observers.

The annual military drills, called Han Kuang, demonstrated Taiwan’s growing military readiness and heightened concerns over a potential invasion from mainland China.

Historical Origins of the Taiwan Dispute

Taiwan has been a point of contention since the 1949 Chinese Revolution when the Nationalists fled mainland China to take control of the island. The post-revolutionary People’s Republic of China (PRC) opposed the Nationalist rule of Taiwan and sought to reclaim this lost territory. The US naval presence in the Taiwan Strait (especially following the Korean War with the Seventh Fleet in 1950) along with diplomatic and military support for Taiwan since the Mutual Defense Treaty of 1954, deterred the PRC from launching a full-scale invasion.

Conversely, in 1949 Taipei became the provisional capital of the Republic of China (ROC), which was recognised as the legitimate government of China in the United Nations due to the United States’ support during the Cold War. Only in 1971, when the PRC was able to gather enough votes in the UN General Assembly (Resolution 2758), was this position reversed, and the PRC became the sole representative government of China. Following Resolution 2758, the ROC withdrew from the UN and is an official member of only a handful of intergovernmental bodies, most notably the World Trade Organisation.
 

The Taiwan Strait and the First Island Chain
Figure 1: Taiwan Strait and the geographic boundaries of the First and Second Island Chains DoD, Public domain, via Wikimedia Commons

Global Recognition and the One China Debate

Recognition of Taiwan has been a point of contention since the 1970s. Research from the Lowy Institute, published at the beginning of this year, found that 142 countries support Beijing’s position that Taiwan is part of China, with 119 of these countries adopting the One China Principle, which asserts that Taiwan is an inalienable part of the PRC. Conversely, 40 countries, including Australia and the US, support the One China Policy, which is a non-committal stance on Taiwan, acknowledging the PRC’s position that Taiwan is a province of China but stops short of endorsing it. Such acknowledgement leaves it up to the PRC and the ROC to work out what will happen with Taiwan in the future, and provides the possibility for different forms of support and engagement with Taiwan.

The United Nations’ interpretation of One China Principle has been subject to recent debate, with scholars Jacques deLisle and Bonnie S. Glaser outlining how Resolution 2758 and subsequent UN communiques have been misrepresented to appear that the UN supports One China Principle rather than simply acknowledging the PRC as the “only lawful representatives of China to the United Nations”.

One China and ‘Strategic Ambiguity’

The US has maintained a position of ‘strategic ambiguity’ where successive administrations have not confirmed or denied if the US would defend Taiwan in an invasion scenario but have consistently provided arms to Taiwan to support their self-defence capabilities. The Mutual Defense Treaty was terminated in 1979 as part of the formal recognition of PRC as the sole representative of China. The Taiwan Relations Act (1979) then established the framework for the unofficial relationship between the US and Taiwan, which provided various forms of support, including the provision of military support to help Taiwan maintain its self-defence capabilities. This strategic ambiguity together with the ongoing provision of arms has acted as an effective deterrent to a possible invasion.

The 1992 Consensus: A Fragile Framework

Over the years, relations between Communist-controlled mainland China and Nationalist-controlled Taiwan were stabilised through the 1992 Consensus, which recognised the concept of ‘One China’ – an agreement allowing for two distinct interpretations over governance. Essentially, both sides agreed that Taiwan and mainland China were part of a singular China, but each maintained its interpretation over who is the legitimate government of China. In practice, the 1992 Consensus served as a framework for managing relations between the two rival governments. Since then, trade, travel and relations between the two improved significantly, with China eventually becoming Taiwan’s largest trading partner.

Such strategic ambiguity and the agreed framework of the 1992 Consensus maintained a stable status quo between Taiwan and mainland China for years. More recently, however, relations between the Taiwan and mainland China have reached historic lows. This is largely a product of the simultaneous rise of Chinese nationalism driven by the leadership of Xi Jinping and the growing popularity of the independence movement in Taiwan, leading to historic election victories for the Democratic Progressive Party (DPP), the current ruling party in a minority government.
 

Rhetoric only Heightens Tensions

Xi has been unambiguous on his determination to return Taiwan to China, within the tenure of his presidency. As he noted in his New Year’s Eve address in 2024, "The people on both sides of the Taiwan Strait are one family. No one can sever our family bonds, and no one can stop the historical trend of national reunification." Such rhetoric heightens concerns of a potential future invasion.

These concerns are compounded by an increased Chinese presence in the Taiwan Strait, including their own military drills. The latest, held in April and titled ‘Strait Thunder 2025a’ that involved 135 aircraft, a two-side naval blockade and missile strikes on simulated Taiwanese infrastructure.

According to the Chinese military, the drills acted as a “powerful deterrent” to separatist elements in Taiwan. From Xi and the PRC’s perspective, Taiwan’s return is part of the Chinese Dream, the mutually beneficial rise of China that Taiwan should share in.

Conversely, the Taiwanese president, Lai Ching-te, has dialled up his rhetoric against the PRC in March 2025, declaring it to be “foreign hostile force” and suggesting the establishment of military courts to prosecute sedition and the leaking of government secrets. Lai’s characterisation of the PRC as ‘foreign hostile force’ invokes specific language from the 2020 Anti-Infiltration Act, which defines such entities as those that are “at war with or are engaged in a military standoff with the Republic of China”.  

The suggestion of military courts alludes to the growing concern over China’s influence in domestic Taiwanese affairs, or as Lai argues, “China has been taking advantage of democratic Taiwan’s freedom, diversity, and openness to recruit gangs, the media, commentators, political parties, and even active-duty and retired members of the armed forces and police to carry out actions to divide, destroy, and subvert us from within.”

Such language has been toned down of late, when Lai stated in May, “Taiwan is happy to have exchanges and cooperation with China as long as there is reciprocal dignity.” This is in large part due to Lai’s declining popularity and the public’s general concern about escalating tensions between Taiwan and mainland China. Yet the latest Han Kuang drills indicate that Lai and his government continue to hold China as a future aggressor.

Such stances are compounded by the United States, with the Trump administration vocalising concerns about a potential Chinese invasion. In July, the current US Secretary of State, Marco Rubio, outlined the administration’s position, "I can't speak for the Trump presidency, but I don't have any worries about the U.S. being supportive of Taiwan and doing everything we can to discourage the Chinese from invading."

US Involvement and Military Support for Taiwan

Ongoing US support includes USD $28bn in Foreign Military Sales (FSM) between 2015 – 2025, expansion of training in both the United States and Taiwan, arms transfers through the Taiwan Enhanced Resilience Act (TERA) and the Taiwan Security Cooperation Initiative (TSCI), which will provide over USD $1bn to ensure Taiwan’s “sufficient self-defence capabilities”.

More recently, the US announced that 500 Taiwanese military personnel participated in a US-led military drill, Northern Strike, in the state of Michigan where the Taiwanese joined eight other partner countries alongside the US military. The drills were based on an Indo-Pacific security crisis. Combined with the public admission of Taiwan’s involvement, the US is clearly signalling to China its intent to be an ongoing military presence in the region. 

Rubio has encouraged the military escalation of Taiwan’s war readiness as a means of deterring China, stating, "In essence, it has to cost more than what it's worth". Such logic only encourages military tensions rather than deescalating them. Other actors, especially from senior government officials and think tank security experts, have compounded this rhetoric by amplifying the perceived likelihood of invasion and war.

The Geostrategic Reality that Many Ignore  

Despite the rhetoric of the possibility of war, the reality of what such an outcome would entail has not been given its proper due. Commentators, many scholars and key government officials have chosen to ignore the geostrategic reality of the Taiwan Strait in relation to both the military build-up of China and the military leverage the US holds over China.

First, let’s look at China’s military bolstering. China’s Anti-Access/Area-Denial (A2/AD) system extends across the East China Sea, the South China Sea and the Taiwan Strait, significantly reducing the intervention and deterrence capabilities of the US and its allies in this region, specifically the First Island Chain (Kuril Islands, the Japanese archipelago, the Ryukyu Islands, Taiwan, the northern Philippines and Borneo). This system is made up of land-based, sea-based and aerial defence systems that include the following arms: Anti-Ship Ballistic Missiles (ASBMs), Anti-Ship Cruise Missiles (ASCM), Surface-to-Air Missiles (SAM), a large fleet of submarines, surface ships, fighter jets and bombers. Along the Taiwan Strait, the PLA has established a series of military installations along the mainland coast that can sink any ship that comes within range along with anti-aircraft missile systems.  

The United States is well aware of China’s strategic advantage, especially in the Taiwan Strait. According to former Australian Prime Minister, Kevin Rudd, “desktop military war games conducted by Washington, Beijing and Tokyo across a range of Taiwan scenarios, the United States has reportedly lost repeatedly (according to some reports, this includes as many as nineteen successive occasions – and, in some cases, even when fighting with a range of its strongest regional allies).”

Rudd is not alone in this assessment. Harvard University professor and former Assistant Secretary of Defense in Policy and Planning, Graham T. Allison, has noted that “China has been steadily pushing the US Navy out of its adjacent seas. American ships continue to show their flags, conducting occasional freedom-of-navigation patrols into the Taiwan Strait and South China Sea. The US has also signalled that, in case of war, its carriers would remain behind the First Island Chain – putting them beyond the reach of Chinese land-based missiles. From that distance carrier-based aircraft would be unable to reach targets on the Chinese mainland. Thus, the US Navy has been struggling to find a way these aircraft-carriers and their plans can remain relevant.”

From the other side of the political spectrum, international relations scholars Van Jackson and Michael Brenes have argued that the Taiwan Strait represents a ‘security dilemma’, as the only means by which the United States and its allies could penetrate the A2/AD defence system would be through an aerial assault on the missile systems installed on the Chinese mainland – an unwanted and unwarranted escalation that has a high probability of a much wider war.

However, China is not in an absolute dominant position either. As Jackson and Brenes rightly argue, the United States’ vast military and already established presence in Taiwan mean that “China is inhibited – deterred – from launching an invasion of Taiwan because it would be costly in even the best case.” Indeed, any kind of military incursion by China would be costly for China, Taiwan and the US, if an intervention took place. Such a scenario could inevitably draw in other state actors. For instance, Australia has a long history of militarily supporting the United States, while China would likely receive support from North Korea.

War Games and the Cost of Conflict

The Centre for Strategic and International Studies (CSIS) released a new report in July, on the possible outcomes of a conflict in Taiwan based on 26 war games. The scenario was based on escalating tensions where China imposed a naval blockade, exploiting Taiwan’s dependency on energy imports and international trade. The overall conclusions of the report were that:

  • Almost all scenarios incurred heavy losses for involved parties in both human life and military resources.

  • Blockades are inherently escalatory.

  • Taiwan could not defend itself alone against the military dominance of China and would require US military intervention (beyond the supply of arms).

Consequently, the military dimension in Taiwan indicates that a potential conflict would be an unwelcomed scenario due to the potential for significant losses and rapid escalation. Military planners from the US, Taiwan and China are aware of this security dilemma yet nationalistic rhetoric, military drills and arms transfers are moving the needle in the wrong direction.

Public Opinion in China: Divided on Taiwan

The Chinese public is divided on the prospect of militarily resolving the issue of Taiwan. Research by Nick Zeller, Renard Sexton, Michael Cerny and Yawei Liu from the Carter Centre and Emory University found that just over half surveyed (55.1%) were against any use of force against Taiwan. While research from Adam Y. Liu and Xiaojun Li found the opposite to be true, with 55% of respondents supporting armed reunification. However, this research also noted that around a third opposed military conflict, with the rest unsure. As such, mainland China is divided on how to deal with Taiwan, and reports in the Chinese media claiming that armed reunification is widely supported are misleading to say the least.

Meanwhile, Lai’s rhetoric against the PRC has been a contributing factor to his decline in popularity. In general, the Taiwanese public do not believe a conflict with China is imminent, despite the political establishment thinking otherwise. Recent recall elections have provided favourable results for opposition politicians, meaning that the minority government of the Democratic Progressive Party will need to continue to negotiate with their counterparts, and be more measured in their rhetoric towards China.

The issue of Taiwan and mainland China remains a complex entanglement. At this present juncture, the stabilisation of relations and the reaffirming of the 1992 Consensus would reduce tensions significantly. A return to such a position would de-escalate antagonisms without either side losing their public standing.

Australia’s Strategic Position and Diplomatic Pressure

The Trump administration has placed pressure on the Australian and Japanese governments to provide public pre-commitments to support the US in a hypothetical war over Taiwan. US Under-Secretary for Defense Policy, Eldrige Colby, who is also leading the review of AUKUS, has reportedly made such demands of Australia and Japan. Such a move would be diplomatically disastrous and has rightly been rejected by both governments.

In Australia’s case, the continuation of strategic ambiguity has bipartisan support, with Liberal senator and well-known China hawk, James Paterson, stating that it “wouldn’t be appropriate” for Australia to take such a position, especially considering that the US has continued with the policy of ‘strategic ambiguity’.  The Australian government appropriately has chosen to refrain from such positions and to resist American pressure on Australian foreign policy. Prime Minister Anthony Albanese reiterated Australia’s commitment to “peace and security” in the region, emphasising to the US the importance of diplomatic outcomes as the most constructive path forward.

As it currently stands, diplomatic relations and dialogues that work towards stability will involve the Taiwanese president turning down the dial on anti-Chinese rhetoric and the PRC treating Lai as a politician whom they can work with rather than viewing him as a separatist agitator.

Concluding Thoughts

Escalating tensions between China and Taiwan are a worrying trend, and evidence of the growing militarisation of the region. The complicated history between Taiwan and China means that it is increasingly difficult to navigate a resolution that would satisfy all involved parties. The interventions of outside powers, like the United States, have only increased the likelihood of future hostilities – even as they aim to deter conflict.

The Australian government has the potential to act as a stabilising middle power. The government’s reaffirmed position of strategic ambiguity, combined with improved relations with China, demonstrates a capacity to act independently as a responsible regional actor promoting peace and stability.

The geostrategic reality of the Taiwan Strait for both the US-backed Taiwan and China translates to a military stalemate that should encourage all involved to enter diplomatic talks. Neither China nor Taiwan is currently pursuing this option. Militarisation characterises the position of the two opposing forces. Doubling down on military activities and arms will bring greater insecurity not just for Taiwan and China, but for the wider region too. This includes Australia.

Engagement with Taiwan and China has been a fine balancing act for decades. As our current government attempts to take on a more nuanced approach to regional security, many of us will be watching closely on how they manage to navigate the complexities of Taiwan-Chinese relations. The Taiwan Strait does not have to become the world’s next flashpoint. The question is whether leaders will choose diplomacy over militarisation before rhetoric hardens into reality. 

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