The Taiwan Dilemma
For decades, Beijing has repeated a single mantra: “One Country, Two Systems.” Framed as unity through diversity, different ways of life under one roof, it conceals a fundamental contradiction. The moment you allow two systems, you admit that political unity is incomplete.
Originally devised by Deng Xiaoping for Hong Kong and Macau, the formula was later offered to Taiwan as a model for “peaceful reunification.” Yet it attempts to reconcile two irreconcilable claims: centralized sovereignty and genuine institutional independence. It promises autonomy while demanding submission. In doing so, it exposes the truth Beijing denies: across the Taiwan Strait, two distinct political systems, and effectively two countries, already exist.
Two Systems, Two Sovereignties
A country cannot have two systems. A system defines the political soul of a nation. China’s system is one-party rule under the CCP; Taiwan’s is democracy, pluralism, and the rule of law. They are not variations of a single framework, they are opposites. Beijing cannot impose its sovereignty without erasing Taiwan’s system, and Taipei cannot preserve its institutions while accepting Beijing’s authority.
Governance, law enforcement, and political legitimacy are separate. Taiwan holds free elections, maintains independent courts, negotiates trade agreements, issues passports, and operates its own military. The PRC exerts no authority over these functions. In practice, sovereignty depends on effective governance, and by that standard, Taiwan is a fully functioning state.
(i) The Currency and Visa Tests
Sovereignty is written in daily realities. Taiwan issues the New Taiwan Dollar (NTD); China issues the Renminbi (RMB). They operate independently, under separate central banks and monetary policies. If they were truly one country, a single currency and unified financial system would exist.
Borders and visas reinforce the separation. A Taiwanese visa does not grant access to China; a Chinese visa does not allow entry to Taiwan. These everyday distinctions underscore that two governing authorities exist with full control over their territories.
(ii) Economic Independence and Identity
Taiwan’s economic system is globally integrated, high-tech, and market-driven. China’s economy remains centrally controlled, subject to capital restrictions and political oversight. The divergence in economic governance reinforces two separate national identities: Taiwan’s citizens enjoy openness and autonomy; China’s citizens navigate a system defined by Party control. Economic systems, like political ones, shape the soul of a nation.
(iii) Hong Kong’s Lesson
The collapse of Hong Kong’s autonomy destroyed the last illusion of “One Country, Two Systems.” Promised self-rule vanished under the national security law of 2020, revealing that Beijing’s model was never about coexistence, but assimilation. Taiwan, watching, understands that the slogan is a rhetorical device, not a blueprint for real autonomy.
(iv) Global Recognition of Two Realities
Even if formal diplomatic recognition is ambiguous, the world treats Taiwan and China as distinct entities. Taiwan maintains its own trade agreements, supply chains, internet domain (.tw), airline codes, and postal system. International corporations, banks, and legal institutions operate under Taiwan’s authority, not Beijing’s. The global system recognizes de facto sovereignty, even if political statements lag behind.
The Unavoidable Conclusion
Nations are defined not only by territory, but by the systems that govern them. China and Taiwan have separate governments, currencies, legal frameworks, and visions of citizenship. One is built on control, the other on consent. No slogan can erase that reality.
Beijing may own the phrase, but Taiwan owns the fact. Every free election, every NTD in circulation, every independent court decision reaffirms the principle: two systems, two governments, two nations. “One Country, Two Systems” was meant to mask reality but reality cannot be rewritten. Across the Taiwan Strait, the truth is unavoidable: there are two countries.
Raghu Kondori
Iranian-French Author | Founder of Shahvand Think Tank
