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The article presents information on the U.S. policy toward the Taiwan Strait under the administration of President George W. Bush. It puts the policy under historical perspective by examining the evolution of it. Some previous research literatures will be briefly discussed and argues that all of them cannot convincingly account for U.S. policy toward Taiwan in this time period. It proposes that there are two levels in the international system and rational actors at different levels will play different games to maximize their interests and power.