It's basically recognizing whichever side pays better to do so. They also operate a refugee camp where Australia sends asylum seekers in exchange for aid.
Does Taiwan reconive Taiwan as Taiwan or do they still claim to be The republic of China?
A big part of this conflict is due to the US along with the army of Taiwan insisting that the republic of chine should be the only China represented at the UN For decades after the kumquat army lost the civil war something China have neither forgotten nor forgiven.
And to make it worse distancing themselves from that policy/claim is still a sore issue for Taiwan.
an similar but less heated conflict exist in Europe between Greece and the FYROM who claims to be Macedonia a name that traditionally belongs to a region of Greece.
The pieces on the grand chessboard of nations is not always simple and individual issues can look less complex then they are when presented in isolation of the full context.
