A Prosperous Asian Tiger
The island of Taiwan is located in Southeast Asia, north of the Philippines and off the southeastern coast of China. It borders the East China Sea, the Philippine Sea, the South China Sea, and the Taiwan Strait. The island's total territory is 35,980 square kilometers. Main off-shore islands include Penghu, Green Island, Orchid Island, Kinmen, Mazu, Turtle Island and Little Liuqiu. Taiwan's terrain is characterized by mostly rugged mountains in the east and flat to gently rolling plains in the west. Climate is maritime subtropical, with the rainy season during the southwest monsoon from June to August. Taiwan's population is close to 23 million. Taiwanese are the dominant group, constituting 84 percent of the population, while another 14 percent are mainland Chinese and two percent are native peoples. Mandarin Chinese is the official language.
Taiwan was ceded to Japan in 1895 following a Chinese military defeat, but China took back control of the island after WWII. As Communists took control of mainland China in 1949, some two million Nationalists moved to Taiwan and formed a government based on the 1946 Chinese constitution. Since then, Taiwan has prospered economically, and is presently in the top 20 economies in the world. In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist KMT to the Democratic Progressive Party.
From its inception as a separate political entity, called the Republic of China, its leaders have claimed that Taiwan is the only legitimate Chinese government. The Taiwanese authorities abandoned this idea only in 1991, declaring that they do not dispute the fact that the People's Republic of China controls mainland China. The dominant political issue continue to be the relationship with China - specifically the question of eventual unification or independence for Taiwan, something that Beijing adamantly opposes. Domestic political and economic reform are also important topics.
The lack of formal diplomatic relations with all but 28 of its trading partners appears not to have seriously hindered Taiwan's rapidly expanding commerce. Taiwan maintains trade offices in more than 60 countries with which it does not have official relations. Taiwan has developed into a major international trading power. The island's tremendous prosperity has been accompanied by economic and social stability.
Taiwan has an extensive and well-developed infrastructure. Two international airports are located at the northern and southern ends of the island. Fourteen domestic airports connect major cities and key offshore islands. Five international harbors facilitate import and export trade. Toll highways and a round-the-island railway form an extensive inland transport network, including a north-south freeway.
