One nation, two states (simplified Chinese: 一国两府; traditional Chinese: 一國兩府; lit. 'one country, two governments') presuppose that China is "one country" (or "one nation") in cross-strait relations, but they want to recognize the political situation in which the government of the People's Republic of China (PRC) and the government of the Republic of China (ROC) coexist. This is mainly supported by some Kuomintang politicians who oppose the PRC's one country, two systems, and it was the U.S. government that first proposed it. The People's Republic of China opposes the One nation, two states because it claims to be China's "only legitimate government" (唯一合法政府).[1] "One nation, two states" is basically based on one China principles, so it shouldn't be confused with "Two Chinas".
In 1990, under the support of the United States, the National Unification Council, chaired by President of the Republic of China Lee Teng-hui, proposed "One nation, two states" to the People's Republic of China, but the proposal was rejected because the People's Republic of China feared that the dialogue between the two central governments would be distorted.
When Chen Shui-bian, a member of the Democratic Progressive Party, was elected president of the Republic of China in 2000, then Kuomintang leader Lien Chan proposed "One nation, two states", "federal system", and "national unification system" again and opposed Taiwan independence.
The official statement of the People's Republic of China on the Taiwan question, the one-China principle, is that "there is only one China in the world, the mainland and Taiwan belong to one China, and anything can be discussed on the premise of one China". In the 2000s, the Ministry of Foreign Affairs of the People's Republic of China stated that the basic policy of resolving the Taiwan issue is "there is only one China in the world, and Taiwan belongs to one China" and it also stated the following:[1]
There is only one China in the world, and Taiwan is an inalienable part of China, with its central Government in Beijing. This is a fact recognized by the world and a prerequisite for the peaceful resolution of the Taiwan question. The Chinese government firmly opposes any words or deeds aimed at splitting China's sovereignty and territorial integrity, opposes 'two Chinas', 'one China, one Taiwan' or 'one country, two governments', and opposes all attempts that may lead to the 'Taiwan independence', and opposes all attempts and acts that may lead to 'Taiwan independence'.
三、中国政府解决台湾问题的基本方针[……]（一）一个中国。世界上只有一个中国，台湾是中国不可分割的一部分，中央政府在北京。这是举世公认的事实，也是和平解决台湾问题的前提。中国政府坚决反对任何旨在分裂中国主权和领土完整的言行，反对"两个中国"、"一中一台"或"一国两府"，反对一切可能导致"台湾独立"的企图和行径。海峡两岸的中国人民都主张只有一个中国 [……]
