Recently it has been perceived that the tension across the Taiwan Strait is building up, a development that is also a reflection of the fluid and complicated triangular relationship that exists between the US, China and Taiwan. This article identifies three structural factors that have contributed to the growing tension and increasing complications associated with such a triangular relationship, namely, the lack of a balance of power in the region, energy-geopolitics, and the "perception" issue among the three countries (and also Japan). This article argues from a realist perspective that the cross-Strait relationship between China and Taiwan is merely a reflection of the potential confrontation between the two big powers, that is, between China as a rising power and the US as a power in the status quo. Therefore, a peaceful solution for cross-Strait relations may only be possible when the US and China can achieve a balance of power and level of equilibrium that is in each of their interests. It is also at this point that Taiwan's best national interest can be served.