Abstract In this paper we have strived to answer the question is there an optimal solution for the Taiwan issue and to offer a broad review of some intrusive options. The first option is a de jure declaration of independence from the People’s Republic of China and changing the official name of the political entity from the Republic of China (ROC) to Taiwan. The second option is the unification with the mother country under unique sovereignty with the possibility of maintaining autonomous governance. The third option would be maintaining the status quo in Taiwan Strait until circumstances become more favorable to find the solution. This paper uses realism as a theoretical paradigm with the purpose to emphasize the competitive nature of contemporary US-China relations. The policy of strategic ambiguity is used as a tool for preserving the status quo of the world`s superpower in the Taiwan strait. On the other hand, China strives to expand its influence with the goal of becoming the leading state in Pacific region. As the process of implementation of the assertive development-oriented policy has shown, China plays the role of a country that challenges the current international order. We have attempted to describe multidimensionality the positions behind policies that are used in relation to Taiwan issue. The research has shown that due to current international circumstances there is no optimal solution to the Taiwan issue which will be able to satisfy all affected actors. A major disruption of the international order is needed to achieve new circumstances that will induce actors to accept some sort of solution other than the status quo that has imposed itself as the best option. The public opinion on Taiwan and The US dominantly supports moderate policy agenda regarding Taiwan. In China, public opinion on the matter will stay purely researched due to the nature of the ruling regime. The paper includes some elements of economic, social, and political analysis with a simple purpose in mind, to improve understanding of foreign policies which are led by the US, People’s Republic of China, and Taiwan (Republic of China).