In 1895, military defeat forced China's Qing Dynasty to cede Taiwan to Japan. Taiwan came under Chinese Nationalist control after World War II. Following the communist victory on the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government under the 1947 constitution drawn up for all of China. Beginning in the 1950s, the ruling authorities gradually democratized and incorporated the local population within the governing structure. This process expanded rapidly in the 1980s. In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist (Kuomintang or KMT) to the Democratic Progressive Party. Throughout this period, the island prospered and became one of East Asia's economic "Tigers." The dominant political issues continue to be management of sensitive relations between Taiwan and China - specifically the question of Taiwan's eventual status - as well as domestic priorities for economic reform and growth.

Eastern Asia, islands bordering the East China Sea, Philippine Sea, South China Sea, and Taiwan Strait, north of the Philippines, off the southeastern coast of China

23 30 N, 121 00 E

Southeast Asia

slightly smaller than Maryland and Delaware combined

0 km

1,566.3 km

tropical; marine; rainy season during southwest monsoon (June to August); persistent and extensive cloudiness all year

eastern two-thirds mostly rugged mountains; flat to gently rolling plains in west

small deposits of coal, natural gas, limestone, marble, asbestos, arable land

arable land 16.9%; permanent crops 5.8%; permanent pasture NA

NA

67 cu km (2011)

earthquakes; typhoons

air pollution; water pollution from industrial emissions, raw sewage; contamination of drinking water supplies; trade in endangered species; low-level radioactive waste disposal

strategic location adjacent to both the Taiwan Strait and the Luzon Strait

Taiwanese (including Hakka) 84%, mainland Chinese 14%, indigenous 2%

Mandarin Chinese (official), Taiwanese (Min), Hakka dialects

mixture of Buddhist and Taoist 93%, Christian 4.5%, other 2.5%

23,415,126 (July 2015 est.)

0.23% (2015 est.)

8.47 births/1,000 population (2015 est.)

7.11 deaths/1,000 population (2015 est.)

0.89 migrant(s)/1,000 population (2015 est.)

TAIPEI (capital) 2.666 million; Kaohsiung 1.523 million; Taichung 1.225 million; Tainan 815,000 (2015)

1.12 children born/woman (2015 est.)

NA

NA

NA

multiparty democracy

includes main island of Taiwan plus smaller islands nearby and off coast of China's Fujian Province; Taiwan is divided into 13 counties (hsien, singular and plural), 3 municipalities (shih, singular and plural), and 6 special municipalities (chih-hsia-shih, singular and plural)

Republic Day (Anniversary of the Chinese Revolution), 10 October (1911)

previous 1912, 1931; latest adopted 25 December 1946, promulgated 1 January 1947, effective 25 December 1947; revised several times, last in 2005 (2013)

civil law system

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

20 years of age; universal

Democratic Progressive Party or DPP [TSAI Ing-wen]

Kuomintang or KMT (Nationalist Party) [Eric Chu Li-lun]

New Party [YOK Mu-ming]

Non-Partisan Solidarity Union or NPSU [LIN Pin-kuan]

People First Party or PFP [James SOONG Chu-ye]

Taiwan Solidarity Union or TSU [HUANG Kun-huei]

ADB, APEC, BCIE, ICC (national committees), IOC, ITUC (NGOs), SICA (observer), WTO

none; commercial and cultural relations with the people in the United States are maintained through an unofficial instrumentality, the Taipei Economic and Cultural Representative Office in the United States (TECRO), a private nonprofit corporation that performs citizen and consular services similar to those at diplomatic posts

none; commercial and cultural relations with the people on Taiwan are maintained through an unofficial instrumentality, the American Institute in Taiwan (AIT), a private nonprofit corporation that performs citizen and consular services similar to those at diplomatic posts

red field with a dark blue rectangle in the upper hoist-side corner bearing a white sun with 12 triangular rays; the blue and white design of the canton (symbolizing the sun of progress) dates to 1895; it was later adopted as the flag of the Kuomintang Party; blue signifies liberty, justice, and democracy; red stands for fraternity, sacrifice, and nationalism, white represents equality, frankness, and the people's livelihood; the 12 rays of the sun are those of the months and the twelve traditional Chinese hours (each ray equals two hours)

white, 12-rayed sun on blue field; national colors: blue, white, red

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges.

Free trade agreements have proliferated in East Asia over the past several years. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island and has also secured greater market access for its investors in the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which has helped Taiwan develop into a local RMB hub.

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

$1.075 trillion (2014 est.)

$1.036 trillion (2013 est.)

$1.013 trillion (2012 est.)

$529.6 billion (2014 est.)

3.7% (2014 est.)

2.2% (2013 est.)

2.1% (2012 est.)

$45,900 (2014 est.)

$44,200 (2013 est.)

$43,200 (2012 est.)

35.2% of GDP (2014 est.)

33.4% of GDP (2013 est.)

32.5% of GDP (2012 est.)

(2014 est.)

rice, vegetables, fruit, tea, flowers; pigs, poultry; fish

electronics, communications and information technology products, petroleum refining, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals

5.6% (2014 est.)

11.54 million (2014 est.)

4% (2014 est.)

4.2% (2013 est.)

1.5% (2012 est.)

33.8 (2012)

32.6 (2000)

16.1% of GDP (2014 est.)

-1.2% of GDP (2014 est.)

33.4% of GDP (2014 est.)

33.9% of GDP (2013 est.)

calendar year

1.2% (2014 est.)

0.8% (2013 est.)

1.88% (31 March 2015)

1.88% (31 December 2011)

2.88% (31 January 2015 est.)

2.88% (31 December 2013 est.)

$483.2 billion (31 December 2014 est.)

$449.8 billion (31 December 2013 est.)

$1.249 trillion (31 December 2014 est.)

$1.186 trillion (31 December 2013 est.)

$786.6 billion (31 December 2014 est.)

$748.3 billion (31 December 2013 est.)

$831.9 billion (31 December 2012)

$784.1 billion (31 December 2011)

$738.3 billion (31 December 2010)

$52.65 billion (2014 est.)

$44.02 billion (2013 est.)

$318 billion (2014 est.)

$304.6 billion (2013 est.)

semiconductors, petrochemicals, automobile/auto parts, ships, wireless communication equipment, flat display displays, steel, electronics, plastics, computers

China 27.1%, Hong Kong 13.2%, US 10.3%, Japan 6.4%, Singapore 4.4% (2012 est.)

$277.5 billion (2014 est.)

$267.4 billion (2013 est.)

oil/petroleum, semiconductors, natural gas, coal, steel, computers, wireless communication equipment, automobiles, fine chemicals, textiles

Japan 17.6%, China 16.1%, US 9.5% (2012 est.)

$429.4 billion (31 December 2014 est.)

$421.9 billion (31 December 2013 est.)

$191.9 billion (31 December 2014 est.)

$170.1 billion (31 December 2013 est.)

$66.78 billion (31 December 2014 est.)

$65.8 billion (31 December 2013 est.)

$259.9 billion (31 December 2014 est.)

$246.1 billion (31 December 2013 est.)

New Taiwan dollars (TWD) per US dollar -

31.718 (2014 est.)

29.95 (2013 est.)

29.62 (2012 est.)

29.47 (2011 est.)

31.648 (2010 est.)

235 billion kWh (2011 est.)

224.8 billion kWh (2011 est.)

0 kWh (2013 est.)

0 kWh (2013 est.)

48.48 million kW (2014 est.)

72.5% of total installed capacity (2013 est.)

12.5% of total installed capacity (2013 est.)

6.3% of total installed capacity (2013 est.)

8.7% of total installed capacity (2013 est.)

1,726 bbl/day (2013 est.)

0 bbl/day (2010 est.)

885,900 bbl/day (2010 est.)

2.38 million bbl (1 January 2014 est.)

920,200 bbl/day (2011 est.)

974,000 bbl/day (2013 est.)

255,000 bbl/day (2011 est.)

304,700 bbl/day (2011 est.)

379.4 million cu m (2014 est.)

16.21 billion cu m (2014 est.)

0 cu m (2014 est.)

17.69 billion cu m (2014 est.)

6.229 billion cu m (1 January 2014 est.)

307.1 million Mt (2012 est.)

5 nationwide television networks operating roughly 75 TV stations; about 85% of households utilize multi-channel cable TV; national and regional radio networks with about 170 radio stations (2008)

AM 21, FM 143, shortwave 1 (2008)

76 (5 television networks with 46 digital and 30 analog stations) (2007)

.tw

37 (2013)

1 (2013)

31 (2013)

condensate 25 km; gas 802 km; oil 241 km (2013)

Army, Navy (includes Marine Corps), Air Force, Coast Guard Administration, Armed Forces Reserve Command, Combined Service Forces Command, Armed Forces Police Command

18-35 years of age for compulsory and voluntary military service; 1-year service obligation; women may enlist; women in Air Force service are restricted to noncombat roles; reserve obligation to age 36 (Army); the Ministry of Defense is in the process of implementing a voluntary enlistment system over the period 2010-2015, although nonvolunteers will still be required to perform alternative service or go through 4 months of military training (2012)

involved in complex dispute with Brunei, China, Malaysia, the Philippines, and Vietnam over the Spratly Islands, and with China and the Philippines over Scarborough Reef; the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions but falls short of a legally binding "code of conduct" desired by several of the disputants; Paracel Islands are occupied by China, but claimed by Taiwan and Vietnam; in 2003, China and Taiwan became more vocal in rejecting both Japan's claims to the uninhabited islands of the Senkaku-shoto (Diaoyu Tai) and Japan's unilaterally declared exclusive economic zone in the East China Sea where all parties engage in hydrocarbon prospecting

regional transit point for heroin, methamphetamine, and precursor chemicals; transshipment point for drugs to Japan; major problem with domestic consumption of methamphetamine and heroin; rising problems with use of ketamine and club drugs