The relationship between China and Taiwan has improved substantially since the election of President Ma Ying-jeou (馬英九) in 2008. The reduction in cross-Strait tension is welcomed by the United States but the resulting changes also call into question the utility of Washington's policy of strategic ambiguity. Employing the theory of deterrence. This study analyzes the logic of U.S. Policy on the Taiwan issue and current cross-Strait interaction. It is concluded that both sides of the Taiwan Strait continue to act as conditional revisionists and Washington' deterrence policy remains effective in that it serves to maintain cross-Strait peace and stability.