The United States should make a clear distinction between its general goal of spreading democracy and its policy on Taiwanese sovereignty. Taiwanese democracy and independence are logically and morally separate issues. The United States should support the former and distance itself from the latter. Indeed, if the United States wants to spread democracy, it should encourage Taiwan to remain nominally part of China.
When Taiwan claims to be both Chinese and democratic, it gives the lie to Beijing officials' claim that Chinese culture and Western-style democracy do not mix. In the 'enlargement' strategy of the United States, China is a prize 55 times larger than Taiwan. American idealists should not be myopic and settle for current Taiwanese independence at the expense of future Chinese democracy.
Until tensions settle down, both in relations between Taipei and the mainland and in the succession politics of Beijing, Washington should discourage President Lee Teng-hui from aggressively pursuing his pragmatic diplomacy agenda. For example, Washington should not only refuse to support Taiwan's bid for entry into the United Nations, it should discourage Taipei from vigorously pursuing that goal in the near term.
The United States should guarantee support for Taiwanese security, including direct American intervention if necessary, but this should be conditional: Taiwan's democracy will be assisted only if it does not provoke attack by moving towards formal independence.
The Chinese government would never attack Taiwan out of the blue, so it would be fair to deduce that a reversal in this policy would carry grave implications.
A China that would launch an unprovoked, military reunification campaign that jeopardises its economic and political interests would have to be a radically more aggressive China. The United States would have to contain such a China vigorously or expect to face it in battle soon. For either of those tasks, Taiwan is a better platform than most.