Abstract: This article examines Taiwan’s security, Taiwan-China relations, and the role of the U.S. and other players in the new strategic situation in that has been created by China’s newly aggressive pursuit of dominance. This new situation has been manifested in frictions among the major stakeholders in Asia, culminating in a series of events in 2010, including the sinking of the South Korean naval ship Cheonan by North Korea; the heated dispute about the Spratly Islands, and the clash between the U.S. and China at the July 2010 ASEAN meeting. I take a broad and historical perspective in my analysis and speculate on the evolution of the new multilateral relations in Asia’s new strategic situation and their impact on Taiwan’s security.