Chinadoesn’t recognition Taiwan to be a country or a state, also tries to introducetheir policy which known as the “One China Policy” for represent thePeople’s Republic of China (PRC) is the only one China in the world, and tryingto have formal diplomatic relations with another country to show the world thatthere is only one China. The “One China policy” is the strategy thatinsists both Taiwan and mainland China are inalienable parts of a single”China”, an adjusted type of the “One China” policy knownas the “1992 Accord” is the present approach of the PRC government,and now and again, the strategy of the ROC government, contingent upon whichmajor political gathering is in control. Under this “accord”, the twogovernments “concur” that there is just a single sovereign state coveringboth mainland China and Taiwan, yet differ about which of the two governmentsis the honest to goodness legislature of this state. In 1992, Taiwan and mainlandChina both concurred that there is just “one China,” covering bothplaces, however they settled on a truce about what that definitely implied.
Thepolicy implies that, essentially, nations must choose which territoryrepresents “one China.” Most nations have chosen Beijing, while also keepingup a few ties; specifically, Washington does not formally perceive Taipei, andauthoritatively adheres to the one-China approach that says Beijing is the reallegislature of all of China (“The one China policy,” 2016). The”One China” strategy alludes to Beijing’s position that Taiwan is aregion of China (despite the fact that it holds democratic elections and isindependently governed), and along these lines different nations can haveformal discretionary relations with either China or Taiwan, yet not both; bycontrast, if Taiwan tries to ignore and has formal diplomatic relations withanother country by abuse this policy China would have various instrumentsavailable to its to hurt Taiwan—not simply military ones, but rather financialones.
That is on account of the island is more monetarily reliant on China thanany time in recent memory (Horwitz, 2016).