美國政府於1979年與中華民國斷交並轉承認中華人民共和國之決定，對台灣在美國法律地位有關鍵性之影響。美國於同年通過之《台灣關係法》排除因失去外交承認而可能導致之國際法後果。經過近三十年判例累積，美國法院確立以《台灣關係法》處理台灣地位的原則，法院依該法將台灣「視爲」一般主權國家，不受行政部門斷交之影響，台灣因此得以有效主張其具美國法律上之國家地位，適用《外國主權豁免法》及國家行爲原則，其國有財產不受中共繼承且不受中共締結之條約拘束。據此，美國的司法實踐使台灣的國家資格及政府權能受充分之尊重，亦因此對台美關係的發展有相當助益。

In 1979, the United States government terminated its official relations with the Republic of China and switched recognition to the People's Republic of China. In the same year, the United States Congress passed the Taiwan Relations Act (TRA) with the aim of protecting Taiwan from negative legal consequences which may stem from the withdrawal of recognition. After nearly thirty years, U.S. courts have established the principle of treating the TRA as the legal basis in dealing with the status of Taiwan. The courts have consistently considered Taiwan as a state regardless of the U.S. government’s termination of diplomatic ties. Hence, Taiwan has been able to possess state status under U.S. law, invoke the Foreign Sovereign Immunities Act and the act of state principle, retain its state assets in the United States, and assert an independent legal status from China under treaty obligations. The jurisprudence established by U.S. courts not only respects Taiwan's state status and sovereignty, but also exerts a positive impact on Taiwan-U.S. relations.