AIT is a wholly owned subsidiary of the federal government of the United States in Taiwan with Congressional oversight.

[4] The AIT was officially created as a U.S. government-sponsored nonprofit, private corporation established under the auspices of the U.S. government to serve its interests in Taiwan.

The AIT now serves to assist and protect U.S. interests in Taiwan in a quasiofficial manner,[5] and also processes U.S. visas and provides consular services to U.S. expatriates.

"[20] Lai's office denied it intentionally omitted the reference to the one China policy, which was challenged by local Taiwanese media.

[21] A new $250 million compound for the American Institute in Taiwan was unveiled in June 2018, accompanied by a "low-key" U.S. delegation[22] and several mid-level diplomats.

[citation needed] According to the AIT the new complex represents "the United States' brick-and-mortar commitment to Taiwan.

Protests were staged by Taiwanese outside AIT's then office in response to then US President Bill Clinton's meeting with Jiang Zemin in 1998.

[24] Three Taiwanese firms protested AIT's failure to pay fees owed for contracting work on the office's new premises in 2013, then under construction.