The United States and China have differences and ambiguities with regard to the Taiwan issue in the content of the “Three Communiqués”. This paper will analyze how China understands the United States’ “strategic ambiguity” and its response, and points out that the reason for the formation of this policy. Under the pattern of exchanges between China, China hopes to force American forces to completely withdraw from the Taiwan issue, but the United States insists that cross-strait differences should be resolved peacefully. The differences between the two countries on the Taiwan issue have led China to believe that the United States deliberately maintains ambiguity with regard to the Taiwan issue, Taiwan-US diplomatic relations, Taiwan-US military relations, and responsibility for collective defense. China's understanding of “strategic ambiguity” involves a broader U.S. policy toward Taiwan, in particular whether the U.S. can draw a red line against Taiwan independence. This paper also points out that China tends to continue to build stronger military forces in response to possible adjustments in US policy toward Taiwan.