The division was inactivated following the visit of President Richard Nixon to China and the subsequent gradually withdrawal of US military forces from Taiwan.

The task force formed the air component of the United States Taiwan Defense Command.

The largest unit assigned to the division was the 314th Troop Carrier Wing, which had moved to Ching Chuan Kang Air Base, Taichung (commonly called "CCK") in January 1966 to augment airlift in the Pacific as part of the buildup of forces associated with the Vietnam War.

[8] The 327th Air Division provided logistics, administrative and service support for military and United States government agencies on Taiwan.

[8][10] In 1972, the 374th Wing participated in humanitarian missions following flooding in the Philippines and the following year supported Operation Homecoming, the repatriation of American prisoners of war from Hanoi.

[13] Although no official announcement had been made connecting these changes with the revised China policy of the United States, these reductions reflected that soon after the Shanghai Communiqué was issued in 1972, steps began to reduce the United States military presence in Taiwan with the ultimate objective of withdrawing all personnel and closing all bases.

[1] Wings Groups Squadrons Other This article incorporates public domain material from the Air Force Historical Research Agency