Taiwan formally calls itself the Republic of China (ROC), tracing its political lineage to the ROC set up in 1912 after the revolution that started on October 10, 1911, in China to overthrow the Qing Dynasty. The ROC uses October 10 to commemorate the national day, celebrated as "Double Ten." The ROC does not recognize the People's Republic of China (PRC) founded in Beijing by the Communist Party of China (CPC) in 1949. The PRC claims that the ROC ceased to exist in 1949 and that Taiwan is a province of "one China." (The Qing Empire had incorporated Taiwan as a full province in 1885-1895, when more settlers moved from China to the island.) The PRC and ROC do not recognize each other or two Chinas. The ROC refers to the other side of the strait as the "mainland." The PRC opposes recognition of the ROC and seeks unification of Taiwan with the mainland as a part of "one China," without renouncing the use of force. In any case, since 1949, the ROC has governed only on Taiwan, and the PRC has ruled mainland China. Previously called Formosa, Taiwan never has been ruled by the CPC or as a part of the PRC, and until 1945, had never been ruled by the ROC. In Taiwan after World War II, October 25, 1945, or "Retrocession Day," marked the ROC's claim of "recovering" Formosa from Japan. However, upon Japan's surrender, that was the first time that the ROC's military forces had occupied the island of Formosa. When the Qing Empire ceded in perpetuity Formosa to Japan under the Treaty of Shimonoseki of 1895, the ROC was not yet in existence. Moreover, the colony's people did not have a say in self-determination of their status or identity. The Kuomintang (KMT), or Nationalist Party of China, has contended that the ROC claimed Formosa at Japan's surrender in August 1945, with no country challenging the island's status. The ROC under KMT forces led by Chiang Kai-shek retreated to Taipei in 1949, when the Communist forces led by Mao Zedong took over mainland China. Taiwan's people have faced social, ethnic, linguistic, and political issues of whether to identify with Taiwan or China, with two major groups of local "Taiwanese" and "Mainlanders" (people who retreated to Taiwan with the KMT forces and their descendants). One of the first major powers to support reforms and the new republic of progressive leaders in early 20 th century China, the United States recognized the ROC from 1913 until the end of 1978. The United States then shifted to recognize the PRC, with its capital in Beijing, under the U.S. "one China" policy. By the early 1970s, the United States had looked to switch the diplomatic recognition to the PRC, while figuring out a framework to sustain engagement with Taiwan. Since 1979, the Taiwan Relations Act (TRA), P.L. 96-8 , has governed policy toward Taiwan. Paying particular attention to congressional influence on policy, Part I of this CRS Report discusses the U.S. "one China" policy concerning Taiwan since the United States (under President Nixon) began in 1971 to reach understandings with the People's Republic of China (PRC) government in Beijing, which has insisted on its "one China" principle . Part II comprehensively reviews the evolution of policies as affected by legislation and articulated in key statements by Washington, Beijing, and Taipei. On an overview of U.S. policy on Taiwan, see CRS Report R41952, U.S.-Taiwan Relationship: Overview of Policy Issues . On U.S. security assistance to Taiwan, see CRS Report RL30957, Taiwan: Major U.S. Arms Sales Since 1990 . Ties or tension across the Taiwan Strait affect international security (with potential U.S. military intervention), U.S.-Taiwan engagement, and U.S.-PRC contacts. In the 1990s, some Members in Congress pushed for changes in policy toward Taiwan. Questions about the "one China" policy arose again after Taiwan President Lee Teng-hui characterized cross-strait relations as "special state-to-state ties" on July 9, 1999. Beijing responded vehemently with calls for Lee to retract the perceived deviation from the "one China" position and reiterated long-standing threats to use force if necessary to prevent a declaration of independence by Taiwan. The PRC also opposed U.S. military intervention. The Clinton Administration responded that Lee's statement was not helpful and reaffirmed the "one China" policy. Some questioned whether the TRA requires U.S. defense of Taiwan against an attack from the People's Liberation Army (PLA), China's military. Senator Jesse Helms, chairman of the Foreign Relations Committee, at a July 21, 1999, hearing, said that Lee "created an opportunity to break free from the anachronistic, Beijing-inspired one-China policy which has imprisoned U.S. policy toward China and Taiwan for years." Representative Benjamin Gilman, chairman of the International Relations Committee, wrote in a September 7, 1999, letter to Clinton that it is a "common misperception" that we conceded officially that Beijing is the capital of the "one China" that includes Taiwan. He wrote, "under no circumstances should the United States move toward Beijing's version of 'one China.'" Since 2001, some congressional leaders have stressed continuity in maintaining the "one China" policy. During the George W. Bush Administration, leaders of the House and Senate stressed support for Taiwan as a democracy, rather than its independent status. Moreover, Members voiced concerns about cross-strait tension arising from actions taken by both Beijing and Taipei. Senator Richard Lugar, chairman of the Foreign Relations Committee, wrote in May 2001 that "for many years, successive U.S. administrations have affirmed that there is one China and that the people on Taiwan and the people of China should work out a plan for peaceful unification." He also referred to a debate on the nature of the U.S. obligation to "defend democracy in Taiwan" and to prevent a "forceful military unification of Taiwan and China." Representative Henry Hyde, chairman of the International Relations Committee, spoke in Beijing in December 2002 and dismissed notions that U.S. support for Taiwan was geared toward containing or dividing China. He said that "the bedrock of the very strong support for Taiwan in the U.S. Congress" is the shared experience as democracies. Moreover, Hyde highlighted Taiwan's significance as a model of a "Chinese democracy" that proved democracy is compatible with Chinese culture. U.S. views were shaped by developments in Taiwan and concern about cross-strait tension. On August 3, 2002, President Chen Shui-bian of the Democratic Progressive Party (DPP) gave a speech using the phrase "one country on each side" of the strait, surprising Washington even before the first anniversary of the terrorist attacks on September 11, 2001. Leading up to the presidential election on March 20, 2004, Chen advocated holding the first referendums (on the same day as the election) and drafting a new constitution with a timetable. Though symbolic steps, Beijing reacted with alarm and warnings. On the eve of his visit to Washington, PRC Premier Wen Jiabao warned on November 22, 2003, that China would "pay any price to safeguard the unity of the motherland." On November 29, President Chen surprisingly announced that he would use one provision in the referendum law passed by the opposition-dominated legislature two days earlier and hold a referendum on China's threats on the day of the presidential election. During his meeting with Premier Wen in the Oval Office on December 9, 2003, President Bush stated that he opposed Chen's efforts to change the status quo, drawing criticisms that Bush sided with Beijing's belligerence. The Taiwan Caucus in the House wrote a letter to President Bush, criticizing his stance as a victory for the authoritarian regime of the PRC at the expense of Taiwan's democratic reforms. On the TRA's 25 th anniversary , the House International Relations Committee held a hearing on April 21, 2004. After congratulating President Chen Shui-bian on his re-election in March 2004, the Administration further clarified U.S. policy toward Taiwan and warned of "limitations" in U.S. support for constitutional changes in Taiwan. At that hearing on the TRA, Representative James Leach, chairman of the House International Relations Subcommittee on Asia and the Pacific, stated that Taiwan has the unique situation in which it can have de facto self-determination only if it does not attempt to be recognized with de jure sovereignty. He urged Taiwan's people to recognize that they have greater security in "political ambiguity." He called for continuity, saying that "together with our historic 'one China' policy," the TRA has contributed to ensuring peace and stability in the Taiwan Strait. In his second inaugural address on May 20, Chen responded to U.S. concerns, excluding sovereignty issues and a referendum from his plan for a new constitution by 2008. Leach represented the United States at Chen's inauguration. At a subcommittee hearing on June 2, 2004, Leach praised Chen's address as "thoughtful, statesmanlike, and helpful" as well as "constructive" for dialogue with Beijing. Later, to mark the 25 th anniversary of the TRA on April 10, 2004, the House voted on July 15, 2004, to pass H.Con.Res. 462 (Hyde) to reaffirm "unwavering commitment" to the TRA. Some in Congress also had concerns about challenges to U.S. interests in reducing tensions and fostering dialogue across the strait.