U.S. President Richard Nixon made a surprise visit to Beijing during the middle of the Cold War in 1972, where he met and shook hands with Mao Zedong, the leader of the People's Republic of China. The Chinese leader, Zedong, stipulated that the United States change its policy toward Taiwan in order to improve relations between the United States and the People's Republic of China.
Washington cut diplomatic ties with Taiwan and canceled their military agreement in 1979, as part of the process of normalizing relations between the United States and the People's Republic of China. Subsequently, the United States began to establish its relations with Taiwan under the "Taiwan Relations Act 1979". According to this law, the United States did not accept the determination of Taiwan's future outside the scope of peaceful means.
The transformation of “fixed global capitalism” into “financial capitalism” within the “neoliberal project” has made China a magnet for multinational corporations that struggle to maintain capital accumulation.
And multinational companies moved their production to China, especially since the latter provides cheap labor.
Conversely, the dissolution of the Soviet Union and the end of the Cold War in the early 1990s ended the obligatory partnership between fixed capitalism and the world of labor in the United States.
Meanwhile, multinational capital companies based on making more profits have dumped their bonds and moved their business to China. This is just like the gold rush that took place in America.
If China remained a global repository of cheap labor, there would be no problem for the United States.
At this juncture we are at today, China is the second largest economy in the world after the United States. Expectations also indicate that China will overtake the United States economically in the near term.
China's economic rise reflects its soaring position within the global system, so the United States sees China as more dangerous than it did the Soviet Union.
Everything became justified. It's all about great power competition between the United States and China. In addition, the administration of the American system sees the rise of China as a threat to its existence.
In other, simpler terms, if a person sees another person as his opponent he will take any opportunity to finish him off and have the desire to get rid of the danger coming from him by using all kinds of possible means. In fact, it does not matter if the other party thinks so or not.
Over time, perceptions create their own reality and will lead both sides step by step into a major confrontation.
China enthusiastically embraces the idea that the island of Taiwan is part of it, and even sees this as a political goal that it cannot do without.
The United States appears to be using all means to prevent China from achieving this goal. China points out that the United States is systematically violating the one-China policy, despite its claim to the contrary.
Conversely, the United States says that China is also preparing to annex Taiwan by force, despite its claim to the contrary. The United States does not say that it will not defend Taiwan militarily if it is occupied by China, nor does it say that it will defend it. This policy is described as "strategic ambiguity".
Repeatedly, U.S. President Joe Biden made statements that his country has obligations to defend Taiwan, but immediately after his statements, the White House indicated that its "One China" policy has not changed.
In his remarks, Biden did not strongly oppose Speaker Nancy Pelosi's visit to Taiwan, which made China all the more doubtful.
On the other hand, the anti-China "hot-headed hawks" demand that Washington abandon the "One China" policy and the policy of "strategic ambiguity". Their proposal was supported by both Republicans and Democrats.
In June, Robert Menendez, chairman of the Senate Foreign Relations Committee, and Republican Senator Lindsey Graham introduced the "Taiwan Policy" bill of 2022.
The bill includes provisions for $5 billion in security assistance over four years and amendments to the 1979 Taiwan Relations Act.
The bill also provides for Taiwan's support in participating in international organizations, strengthening trade relations and recognition as a major non-NATO ally, and imposing sanctions on China in the event of any hostile actions against Taiwan.
Senator Robert Menendez published an article in the New York Times on August 5 in which he defended the bill. He also noted that China was preparing to occupy Taiwan within years, accusing Beijing of trying to change the status quo in Taiwan.
Menendez also criticized the "strategic ambiguity" of the United States. He stated U.S. deterrence must be clear and credible. In the end, all of this gives ample clues as to where the Taiwan crisis might be headed in the near future.