The democratization of the Taiwan has greatly altered the framework for cross-strait relations and complicated the relations both sides have with the United States. To capture these changes in Taiwan, a new game theoretic model is proposed. Using the example of the 1995-96 missile crisis, one can see that neither China nor the United States have altered their strategy to properly address these changes. After this game theoretic analysis, each party is viewed in depth to highlight the factors leading to the continued tense relations between Taiwan and China, including the role that America's policy of "strategic ambiguity" has played. In conclusion, it is argued that each party has several means to decrease the tension across the straits through small alterations of the present policies. Furthermore, the US can encourage constructive cross-strait dialogue by altering its strategy closer to that of "strategic certainty" while attempting to get assurances from both sides.