Shen served as Taiwan's ambassador to Australia from 1966 until 1968 before returning to Taiwan to become vice minister of foreign affairs between 1968 and 1971.[2]
Shen was appointed Republic of China ambassador to the United States in 1971.[1] Shen arrived in Washington, D.C., to assume his post just months before U.S. President Richard Nixon visited mainland China on an official visit. While in China, Nixon signed a communiqué with Mao Zedong's government. The communique officially created the United States's One-China policy which acknowledged the People's Republic of China's position that there is but one China and Taiwan is part of China. The United States does not recognize the People's Republic of China's position and insists on the peaceful resolution of cross-strait differences, opposes unilateral changes to the status quo by either side, and encourages both sides to continue their constructive dialogue on the basis of dignity and respect.
Shen continued his efforts throughout the 1970s to persuade the United States to continue to recognize Taiwan and the Nationalists. The Nationalists and the United States had been important World War II and Cold War allies until the Nixon administration. Shen's diplomacy proved in vain. The United States, under President Jimmy Carter, officially severed diplomatic relations with Taiwan in 1979 as part of its One-China policy.[1]
Shen returned to Taipei in January 1979[2] and retired. He wrote a highly critical book about the United States withdrawing its recognition of Taiwan, the event of which he was a first-hand witness.[4] Shen died at his home in Taipei on July 12, 2007, following a lengthy illness.[1] He was 98 years old and was survived by his wife, Wei-yi Shen.[1]
Since 1979, Taiwan no longer maintains an embassy in the United States, since there are no official diplomatic relations between the two countries. However, Taiwan continues to operate a representative office in Washington D.C., called the Taipei Economic and Cultural Representative Office in the United States, with offices in twelve other American cities.