It is widely recognized that Taiwan was the most conflictual issue in U.S.-P.R.C relations both in the Cold War and post-Cold War eras (Ross, 1995). How the dynamics of the “strategic triangle” consisting of the U.S., Mainland China and Taiwan to be understood? How is the U.S. “strategic ambiguity” policy to be explained? Neorealists may argue that there was a tacit agreement between Beijing and Washington that so long as cooperation was imperative, the status quo in U.S.-Taiwan relations was temporarily acceptable. Revisionists such as Robert S. Ross, however, hold a more sophisticated view that even in the midst of cooperation, the ongoing conflict required continuous negotiations and mutual adjustment between the U.S. and P.R.C. (Ross, 1995). Nevertheless, few study, if any, have provided theoretical answers to the questions that under what conditions the equilibrium of status quo holds, how the U.S. commitment to defending Taiwan will affect the equilibrium outcomes of the game, and how the so-called strategic ambiguity policy is to be explained? By developing a game theoretic model, this paper will provide theoretical answers to those unresolved questions, drawing out both theoretical and policy implications. A historical examination of the interactions between the U.S., Mainland China, and Taiwan since the Korea War will be done to further illustrate the model. [ABSTRACT FROM AUTHOR]