Capital: Taipei
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Introduction Taiwan's status as an independent country is disputed by China, which regards it as a rebel province waiting to be reunified. Taiwan has been diplomatically isolated since the 1970s and today fewer than 30 countries formally recognise the island. In recent decades Taiwan has undergone rapid economic development, and is known as one of Asia's economic 'tigers'.
Issues
History Human settlement in Taiwan is believed to date back 10,000 years. From the 15th century, Japan claimed the eastern half of the island. In 1590, the Portuguese became the first Europeans to visit the island, naming it Formosa, meaning 'beautiful'. Periods of settlement by the Spanish and Dutch followed. From the mid 17th century, China began asserting control over Taiwan and by the end of the century the entire island was under Chinese rule. Large numbers of Chinese from the Fujian and Guangdong provinces migrated to Taiwan. China lost control of Taiwan to Japan after its defeat in the 1894-95 Sino-Japanese war, but took over again in 1945, after Japan's defeat in World War II. In 1947 the Taiwanese staged an island-wide revolt to protest against their treatment by the Chinese nationalists, the Kuomingtang (KMT). The KMT claimed the revolt was led by the communists and brutally put down the protest, killing more than 20,000 Taiwanese. By 1949 the communists, led by Mao Tse-tung, captured the final piece of mainland China, forcing the KMT and its leader, Chiang Kai-shek, to flee to Taiwan, along with up to 2 million refugees. Chiang named Taiwan the Republic of China (ROC), and declared Taipei the temporary capital of China. The ROC sat in China's seat at the United Nations. Chairman Mao opposed the move, stressing the importance of unifying Taiwan with China under his principle of 'one China'. Determined to stop any communist revolt in Taiwan, Chiang placed the entire island under martial law in 1949. Opposition political parties were banned. During the 1950s the nationalists began to reform Taiwan into an industrialised nation, relying on aid from the United States. In 1951 the US announced its recognition of Taiwan as the only legal representative of China. Ties with America were further strengthened in 1954 when the US promised Taiwan military protection, following an attack by China against two islands claimed by the ROC. However, the tide began to turn in the early 1970s, as the US forged closer ties with China to counter the threat of Soviet expansion. In July 1971, the US announced its 'two China' policy, supporting the admission of the People's Republic of China (PRC), mainland China, into the UN. Taiwan was expelled from the UN in October 1971 and the seat was given to the PRC. Chiang Kai-shek died in 1975 and was replaced as president by his son, Chiang Ching-kuo. In 1979 the US formally recognised the PRC and ended its diplomatic ties with Taiwan. It gave Taiwan one years' notice that it would end its defence agreement. Martial law was lifted in Taiwan in 1987. Two years later, in national elections, the KMT under President Lee Teng-hui lost control of some seats to the opposition, the Democratic Progressive Party (DPP). The KMT bounced back in national elections in 1991, winning 71 per cent of the vote. President Lee visited the US in 1995. The following year, China launched what it called 'military exercises' in seas near Taiwan on the eve of Taiwan's first free presidential elections. The US and Taiwan construed China's actions as an act of intimidation. The US responded by sending a massive naval deployment to the area. President Lee won the election with 54 per cent of the vote. In 1999, President Lee hinted that Taiwan was moving closer towards independence. In February 2000, China warned that any declaration of independence by Taiwan would lead to drastic action. The following month, Taiwan held its second free presidential elections. The DPP's pro independence candidate, Chen Shui-bian, was elected, ending more than half a century of nationalist rule in Taiwan. In 2006, there was a campaign to oust Chen Shui-bian, after corruption allegations against his family. He survived, but did relinquish some of his powers to Premier Su Tseng-chang. Government Taiwan's political system is based on the 1947 constitution, which combines elements of both the cabinet and presidential systems of government. All Taiwanese over the age of 20 can vote. In the early 1990s, Taiwan made the transition from an authoritarian one party state to a democracy. The main organs of government are: the presidency; the National Assembly (a constitutional council); and five governing branches: the Executive Yuan (Cabinet); the Legislative Yuan (Parliament); the Judicial Yuan (the state's highest judicial organ); the Examination Yuan (which oversees the Public Service); and the Control Yuan (which exercises powers of impeachment, censure and audit). The Executive Yuan, headed by a premier and vice-premier, is Taiwan's cabinet. Its members are not elected representatives, but appointed officials. The president must sign all acts of parliament into law, and has final authority over the military and security divisions. Economy In the past five decades, Taiwan has transformed itself from an underdeveloped, agricultural economy to an industrial powerhouse. Manufacturing has been the mainstay of the 'Taiwan miracle'. In the 1960s modern labour-intensive industries were introduced to Taiwan with the help of foreign investment, and the island became a major exporter of consumer electronics, electrical products and plastic products. In the 1970s the government funded large-scale investment in basic and intermediate industries including petrochemicals, iron and steel, machine tools and shipbuilding, and encouraged the establishment of a domestic car industry. The 1980s saw a massive expansion of Taiwan's machinery, electronics and information industries. A rapid expansion in the services sector in the 1990s moved the economy away from its manufacturing base. Fifty-five per cent of the workforce is now employed in the service industry; the majority working in wholesale and retail trade, restaurants and hotels. Social, personal and community services, finance, insurance and real estate also employ large numbers of people. The electronics, information and communication products industries are expected to fuel Taiwan's future growth. As a relatively small island economy Taiwan is heavily dependent on trade. Exports to China make up almost one-quarter of Taiwan's total exports. Taiwan investment in the mainland is also considerable - China's new wave of industrialisation has given Taiwan access to a low-cost manufacturing base and potential new markets within China itself. |
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