What is the One-China policy and why does it matter?

By Raffaella Ciccarelli • Senior Producer

4:59pm Aug 10, 2022

"We will never allow Taiwan to be separated from China."

That was the warning from China's ambassador to Australia, Xiao Qian, as he delivered an address at National Press Club today.

During his speech, which started with a conciliatory attitude before shifting, Xiao made repeated mention to the superpowers' One-China policy.

Here's is what we know about it, including how it affects Australia.

READ MORE: What is behind the China-Taiwan dispute?

China has launched military exercises near Taiwan following the visit of US House Speaker Nancy Pelosi. The areas marked in red show where the People's Liberation Army drills are being held. (CNN)

What is the One-China policy?

The One-China policy is the diplomatic acknowledgement of the position held by the People's Republic of China (PRC), that there is only one sovereign state under the name China.

It holds the PRC is the sole-legitimate government, and Taiwan is part of China.

Does Australia recognise Taiwan?

During his address, Xiao was quick to remind Australia it was committed to the One-China principle, as per 1972 joint communique between the two countries.

"Here I quote: 'The Australian Government recognises the Government of the People's Republic of China as the sole legal government of China,'" he said.

"(Australia) acknowledges the position of the Chinese Government that Taiwan is a province of the People's Republic of China."

Xiao Qian speaking at Canberra's National Press Club. (The Sydney Morning Herald)

However, Opposition Leader Peter Dutton added fuel to the fire on Monday, when he referred to Taiwan as independent.

"The reaction from China is completely over the top," Dutton said, addressing China's reaction to US House Speaker Nancy Pelosi's trip to Taiwan.

"It's disproportionate to the visit by a Speaker of the House of Representatives in the world's biggest democracy to visit an independent country."

In this photo provided by Chinas Xinhua News Agency, a People's Liberation Army member looks through binoculars during military exercises as Taiwan's frigate Lan Yang is seen at the rea on August 5. (AP)

Who recognises Taiwan as a country?

According to Department of Foreign Affairs and Trade, 15 states currently recognise Taiwan as a country.

These are:

Belize
Guatemala
Haiti
Holy See
Honduras
Marshall Islands
Nauru
Nicaragua
Palau
Paraguay
St Lucia
St Kitts and Nevis
St Vincent and the Grenadines
Swaziland
Tuvalu

Adherence to the One-China policy is considered the bedrock of any country that wishes to maintain a relationship with Beijing.

How did the One-China policy come about?

Up until the 1970s, most countries recognised the legitimacy of both the PRC and the Republic of China (ROC) in Taiwan.

The ROC had retreated to the island after the Chinese Communist Party (CCP) defeated the Kuomintang (KMT) in the Chinese Civil War, which lead to the establishment of the PRC in mainland China.

However, things started to change in the '70s.

Language around One-China first arose in the Joint Communiqué of the United States of America and the PRC - the document referenced in Xiao's speech today.

US House Speaker Nancy Pelosi is welcomed by Taiwanese Foreign Minister Joseph Wu after landing at Taipei Songshan Airport on August 2. (Getty)

When did the US agree to it?

The United States formally recognised PRC and derecognised the ROC in Taiwan in 1979.

That's why Pelosi's recent trip to Taiwan has drawn the wrath of China.

Xiao branded the trip an attack on China's national sovereignty, and said the US "must take full responsibility" for the escalation of tensions in the Taiwan Strait.

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