Later that month, the Formosa Resolution was approved by both houses of the U.S. Congress, authorizing President Dwight D. Eisenhower to defend the ROC and its possessions.

The crisis de-escalated in April 1955 after Premier Zhou Enlai articulated the PRC's intention to negotiate with the United States at the Bandung Conference, and in May 1955 the People's Liberation Army ceased shelling Kinmen and Matsu.

[3]: 125 As the Korean War broke out, the United States resumed military aid to the ROC and sent the US Navy's Seventh Fleet into the Taiwan Strait.

[4]: 50 On 27 June 1950, Truman issued the following statement:[5] The attack upon Korea makes it plain beyond all doubt that communism has passed beyond the use of subversion to conquer independent nations and will now use armed invasion and war.

The determination of the future status of Formosa must await the restoration of security in the Pacific, a peace settlement with Japan, or consideration by the United Nations.President Truman later ordered John Foster Dulles,[a] the Foreign Policy Advisor to U.S. Secretary of State Dean Acheson, to carry out his decision on "neutralizing" Taiwan in drafting the Treaty of San Francisco of 1951 (the peace treaty with Japan), which excluded the participation of both the ROC and the PRC.

[6] According to the author George H. Kerr, a supporter of Taiwanese independence, in his book Formosa Betrayed, the political status of Taiwan was under the trust of the Allied Powers (against Japan).

The ROC Nationalist Government (now based in Taiwan) maintained as its goal the recovery of control of mainland China, and this required a resumption of the military confrontation with the Red Chinese.

On 2 February 1953, the new president lifted the Seventh Fleet's blockade in order to fulfill demands by anticommunists to "unleash Chiang Kai-shek" on mainland China, hence the Kuomintang regime strengthened its Closed Port Policy of the aerial and naval blockade on foreign vessels on Chinese coast and the high seas,[7][8] whereas the privacy activities intensified in the summer 1953 after Joseph Stalin's death and the Korean Armistice Agreement till summed up to 141 interference incidents as per the Royal Navy escort reports.

[9][10] The CIA briefing on 13 July 1954 for the White House and NSC indicated the shipping insurance increasement across the South China Sea after the Tuapse Incident on 23 June, and certain international liners being deterred midway at Singapore, or had to change plans.

[11][12] The PLA Air Force moved in the Hainan Island to clear another transport route through Yulin and Huangpu ports, but accidentally shot down a Douglas DC-4 (VR-HEU) airliner of the Cathay Pacific Airways with 10 deaths on 23 July, then 2 US aircraft carriers, Hornet and Philippine Sea arrived for a rescue mission on 26 July and shot down 2 PLAAF Lavochkin La-11 fighters .

Despite warnings from the U.S. against any attacks on the Republic of China, five days before the signing of the Manila pact, the PLA unleashed a heavy artillery bombardment of Kinmen on September 3, during which two American military advisers were killed.

On 29 January 1955, the Formosa Resolution was approved by both houses of the U.S. Congress authorizing Eisenhower to use U.S. forces to defend the ROC and its possessions in the Taiwan Strait against armed attack.

"[20] A month later, Mao likewise told Indonesian Prime Minister Ali Sastroamidjojo that all problems, including the status of Taiwan, could be resolved through negotiation.