China Warns of Fallout After U.S. Alters Stance on Taiwan Independence

China has accused the United States of undermining decades of diplomatic agreements after the U.S. State Department removed a key phrase from its Taiwan policy fact sheet.

The phrase, “we do not support Taiwan independence,” was omitted in an update described by Washington as routine. Beijing, however, called the change a “serious regression,” warning it could harm U.S.-China relations and embolden pro-independence forces in Taiwan.

China’s Foreign Ministry spokesperson Guo Jiakun demanded the U.S. “immediately correct its mistake,” emphasizing Beijing’s stance that Taiwan is an inseparable part of China.

The U.S., while reaffirming its commitment to the “One China” policy, clarified that it opposes unilateral changes to the cross-Strait status quo and supports peaceful dialogue.

Taiwan welcomed the update as a sign of stronger U.S. support. Taiwan’s Foreign Minister Lin Chia-lung praised the “Taiwan-friendly” language, reflecting closer ties between Taipei and Washington under President Donald Trump’s administration.

This comes as Taiwan faces mounting pressure from China, which has conducted large-scale military drills near the island, including its largest naval exercises in recent memory.

The controversy unfolds amid heightened tensions in the Taiwan Strait. Last week, two U.S. Navy ships transited the strait for the first time since Trump’s re-election, a move seen as a challenge to Beijing’s territorial claims.

Meanwhile, China has increased military activity around Taiwan, with over 90 naval and coast guard ships deployed in December alone. This policy shift highlights growing friction between Washington and Beijing as their broader rivalry intensifies.

For investors and policymakers, it underscores rising risks in one of the world’s most critical regions for trade and security. As both sides harden their positions, concerns grow over potential missteps that could destabilize the region further.