The great obfuscation of one-China published by The Economist is an excellent, though introductory, read on the Taiwan-China-U.S. relations. Some key points from the article:
China itself does not actually have a one-China policy. It has what it calls a one-China principle, which is that there is only one China, with its government in Beijing.
America does not accept the one-China principle. Instead it has the one-China policy, which acknowledges that China has such a principle—not quite the same thing. America does not recognise Chinese sovereignty over Taiwan, nor does it recognise Taiwan as an independent state.
In Taiwan itself the one-China formula has an even stranger history. It is rooted in the fiction that the island’s first president, Chiang Kai-shek, who fled there in 1949 after losing a civil war to Mao Zedong’s communists, would one day recapture the whole of China.
Among [the proportion of] people [on the island] between 20 and 30, 85% say they are Taiwanese.
The simple and natural solution is to admit there are two Chinas.
A more detailed analysis on the historical progression of “one China”: The “one China” of the U.S. is not the same as the “one China” of China (in Chinese).