This article purports to provide a possible framework of peaceful settlement over the ”one China” problem. It is first suggested that China and Taiwan sidestep the controversies of what ”one China” is, and instead focus their discussions on the more concrete issue of Taiwan's sovereignty. One likely common ground before bilateral negotiations is the premise, based on undeniable facts, that Taiwan is a sovereignty-disputed area or that Taiwan is a semi-sovereignty policy. The main idea of the proposal is that Taiwan shall fulfill certain obligations to China in exchange for the right of a self-determination referendum in the distant future. The characteristics of this proposal are democratic, fair, and peaceful. Among them, fairness is of central importance. The whole negotiation is likely to fall apart if China perceives it as a raw deal. Therefore Taiwan has to provide sufficient incentives and guarantees to make the settlement sound and attractive. If a peaceful settlement following the outline of this proposal is fairly and masterfully structured, and agreed to, it will benefit both China and Taiwan, and the rest of the world as well, by bringing regional stability to the Taiwan Strait for a long time.