In 1895, military defeat forced China to cede Taiwan to Japan. Taiwan reverted to Chinese control after World War II. Following the Communist victory on the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government using the 1947 constitution drawn up for all of China. Over the next five decades, the ruling authorities gradually democratized and incorporated the local population within the governing structure. In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist 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 the relationship between Taiwan and China - specifically the question of Taiwan's eventual status - as well as domestic political and economic reform.

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

slightly smaller than Maryland and Delaware combined

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

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

small deposits of coal, natural gas, limestone, marble, and asbestos

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%

23,234,936 (July 2012 est.)

8.81 births/1,000 population (2012 est.)

7.12 deaths/1,000 population (July 2012 est.)

0.03 migrant(s)/1,000 population (2012 est.)

1.1 children born/woman (2012 est.)

multiparty democracy

includes main island of Taiwan plus smaller islands nearby and off coast of China's Fujian Province; Taiwan is divided into 18 counties (hsien, singular and plural), 3 municipalities (shih, singular and plural), and 4 special municipalities (chih-hsia-shih, singular and plural)

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

adopted 25 December 1946; promulgated 1 January 1947; effective 25 December 1947; amended many times

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

20 years of age; universal

unicameral Legislative Yuan (113 seats - 73 district members elected by popular vote, 34 at-large members elected on basis of proportion of islandwide votes received by participating political parties, 6 elected by popular vote among aboriginal populations; members to serve four-year terms); parties must receive 5% of vote to qualify for at-large seats

Judicial Yuan (justices appointed by the president with consent of the Legislative Yuan)

Democratic Progressive Party or DPP [SU Tseng-chang]; Kuomintang or KMT (Nationalist Party) [MA Ying-jeou]; Non-Partisan Solidarity Union or NPSU [LIN Pin-kuan]; People First Party or PFP [James SOONG]

environmental groups; independence movement; various business groups

ADB, APEC, BCIE, ICC, IOC, ITUC, 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

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. 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. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. 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 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken 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. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

$887.3 billion (2011 est.)

$852.8 billion (2010 est.)

$770.3 billion (2009 est.)

$466.8 billion (2011 est.)

11.2 million (2011 est.)

21% of GDP (2011 est.)

16.1% of GDP (2011 est.)

-3.3% of GDP (2011 est.)

36.3% of GDP (2011 est.)

33.4% of GDP (2010 est.)

1.625% (31 December 2010)

1.25% (February 2009)

2.8% (31 December 2011 est.)

2.676% (31 December 2010 est.)

$366.4 billion (31 December 2011 est.)

$377.3 billion (31 December 2010 est.)

$1.134 trillion (31 December 2011 est.)

$1.022 trillion (31 December 2010 est.)

$792.2 billion (31 December 2011 est.)

$751.5 billion (31 December 2010 est.)

$784.1 billion (31 December 2010)

$657.3 billion (31 December 2009)

$354.7 billion (31 December 2008)

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

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

$41.27 billion (2011 est.)

$39.87 billion (2010 est.)

$307.1 billion (2011 est.)

$273.8 billion (2010 est.)

electronics, flat panels, machinery; metals; textiles, plastics, chemicals; optical, photographic, measuring, and medical instruments

China 28.1%, Hong Kong 13.8%, US 11.5%, Japan 6.6%, Singapore 4.4% (2010 est.)

$279.4 billion (2011 est.)

$247.3 billion (2010 est.)

electronics, machinery, crude petroleum, precision instruments, organic chemicals, metals

Japan 20.7%, China 14.2%, US 10%, South Korea 6.4%, Saudi Arabia 4.7% (2010 est.)

$390.6 billion (31 December 2011 est.)

$387.2 billion (31 December 2010 est.)

$125.8 billion (31 December 2011 est.)

$101.7 billion (31 December 2010 est.)

$61.39 billion (31 December 2011 est.)

$63.38 billion (31 December 2010 est.)

$137.3 billion (31 December 2011 est.)

$124.5 billion (31 December 2010 est.)

New Taiwan dollars (TWD) per US dollar -

213.2 billion kWh (2009 est.)

203.8 billion kWh (2009 est.)

41 million kW (2009 est.)

73.6% of total installed capacity (2009 est.)

12.5% of total installed capacity (2009 est.)

4.7% of total installed capacity (2009 est.)

2.7% of total installed capacity (2009 est.)

830 bbl/day (2011 est.)

0 bbl/day (2009 est.)

952,800 bbl/day (2009 est.)

2.38 million bbl (1 January 2012 est.)

923,900 bbl/day (2008 est.)

1.036 million bbl/day (2011 est.)

344,500 bbl/day (2008 est.)

297,500 bbl/day (2008 est.)

260 million cu m (2010 est.)

15.16 billion cu m (2010 est.)

14.9 billion cu m (2010 est.)

6.229 billion cu m (1 January 2012 est.)

305.4 million Mt (2010 est.)

16.907 million (2011)

28.862 million (2011)

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)

6.166 million (2010)

16.147 million (2009)

Chilung (Keelung), Kaohsiung, Hualian, Taichung

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

19-35 years of age for male compulsory military service; service obligation - 2 years; women may enlist; women in Air Force service are restricted to noncombat roles; reserve obligation to age 30 (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 (2010)

2.2% of GDP; note - in 2009, the Taiwanese president pledged to maintain defense spending at 3.0% or higher; projected 2.73% for 2011 (2009)

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