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Political fallout

On 25 October 1971, the United Nations General Assembly admitted the PRC and expelled the ROC, which had been a founding member of the United Nations and was one of the five permanent members of the Security Council. Representatives of Chiang Kai-shek refused to recognise their accreditations as representatives of China and left the assembly. Recognition for the People's Republic of China soon followed from most other member nations, including the United States.

By 1984, PRC and ROC began to de-escalate their hostilities through diplomatic relations with each other, and cross-straits trade and investment has been growing ever since. The state of war was officially declared over by the ROC in 1991. Despite the end of the hostilities, the two sides have never signed any agreement or treaty to officially end the war. According to Mao Zedong, there were three ways of "staving off imperialist intervention in the short term" during the continuation of the Chinese Revolution. The first was through a rapid completion of the military takeover of the country, and through showing determination and strength against "foreign attempts at challenging the new regime along its borders". The second was by "formalising a comprehensive military alliance with the Soviet Union", which would dedicate Soviet power to directly defending China against its enemies; this aspect became extensively significant given the backdrop of the start of the Cold War. And finally, the regime had to "root out its domestic opponents: the heads of secret societies, religious sects, independent unions, or tribal and ethnic organisations". By destroying the basis of domestic reaction, Mao believed a safer world for the Chinese revolution to spread in would come into existence.

Under the new ROC president Lee Teng-hui, the Temporary Provisions Effective During the Period of Communist Rebellion was renounced in May 1991, thus ending the chances of the Kuomintang's quest to retake the mainland. In July 1999, Lee announced a "special diplomatic relationship". China was furious again, but the military drills were stopped by the 921 earthquakes. It was the last tense moment of this civil war.

With the election in 2000 of Democratic Progressive Party candidate Chen Shui-bian, a party other than the KMT gained the presidency for the first time in Taiwan. The new president did not share the Chinese nationalist ideology of the KMT and CCP. This led to tension between the two sides, although trade and other ties such as the 2005 Pan-Blue visit continued to increase.

With the election of pro-mainland President Ma Ying-jeou (KMT) in 2008, significant warming of relations resumed between Taipei and Beijing, with high-level exchanges between the semi-official diplomatic organizations of both states such as the Chen-Chiang summit series. Although the Taiwan Strait remains a potential flash point, regular direct air links were established in 2009.