The United States opened its new American Institute in Taiwan on June 12, the same day US President Donald Trump met the DPRK leader Kim Jong Un in Singapore.

Tuesday's opening ceremony ended with lingering questions on whether the opening of the American Institute of Taiwan symbolizes the US' strategic ties with Taiwan, as it faces escalating tensions with China. 

Rick Dunham, a visiting scholar at Tsinghua University, said that the American Institute of Taiwan functions as Washington’s new de facto embassy in Taiwan.

“It does just everything that an embassy does, other than government relations. You can get visas there, and it deals with cultural exchange and provides services and assistance for Americans who get into legal trouble and health emergencies. The security, other than not having Marine Guards, is pretty close to what an American embassy would have."

The US cuts its diplomatic ties with the Taiwan authorities in 1979 but remains its strongest ally and sole foreign arms supplier. Under Donald Trump’s administration, unofficial ties between the US and Taiwan have grown even stronger. Taiwan remains the most important and sensitive issue in China-US relations.

Zhong Houtao, a research fellow from the Institute of Taiwan Studies at the Chinese Academy of Social Sciences, said that the Taiwan issue remains non-negotiable as the bottom line in the Sino-American relationship.

“If the US crosses this bottom line, [the] Chinese mainland will take very strong measures against the US, even the US ambassadors might be driven out from the Chinese mainland, and we might also call back our ambassadors to the US. The United States should keep self-restricted on Taiwan issue.”

Marie Royce, assistant secretary of state for educational and cultural affairs, attended the opening ceremony of the American Institute in Taiwan on Tuesday. Her husband Ed Royce is chairman of the House Representatives Committee on Foreign Affairs, who has promoted several pro-Taiwan bills including the Taiwan Travel Act. 

When asked to comment on the US’ intention of sending a non-cabinet level official to Taiwan, Professor Cheng Youping from Taipei University pointed out that the opening of the American Institute of Taiwan signaled the US’ support for Taiwan while also trying to avoid a bigger clash with China. 

"Marie Royce coming to Taiwan does represent a certain political gesture on the part of US. The American administration obviously wants to send a very friendly message to the Tsai Ing-wen administration, but at the same time, it does not want to antagonize Beijing. Americans are playing a very smart Taiwan card. On the one hand, it encourages Taiwanese administration, especially these pro-independent political forces that the US is standing firmly behind them, while the US is also showing to Beijing that it does not intend to go too far beyond the red line or even the US is carefully standing behind the red line."