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124-493: The Republic of China government named the freeway Sun Yat-sen Freeway in honor of Sun Yat-sen , the country's founding father. National Freeway 1 is a tollway where the amount charged varies by distance traveled, with vehicles being fitted with an electronic tag to facilitate toll calculation; the term "freeway" refers to "free of signal", and not free from charge . The construction began in 1971. The north section between Keelung and Zhongli (now Zhongli District, Taoyuan)

248-481: A developed , high-income country during the latter half of the twentieth century. As it developed alongside South Korea , Singapore , and Hong Kong , Taiwan became known as one of the " Four Asian Tigers ". Taiwan was the first developing country to adopt an export-oriented trade strategy after World War II. After a period of hyperinflation in the late 1940s when the Kuomintang-led government of

372-506: A province . Taipei became the permanent capital in 1893. Liu's efforts to increase revenues on Taiwan's produce were hampered by foreign pressure not to increase levies. A land reform was implemented, increasing revenue which still fell short of expectation. Modern technologies such as electric lighting, a railway, telegraph lines, steamship service, and industrial machinery were introduced under Liu's governance, but several of these projects had mixed results. A campaign to formally subjugate

496-667: A Japanese expedition was sent to survey Taiwan. After being attacked by the Indigenous people, they took some prisoners and returned home. In 1616, a Japanese fleet of 13 ships were sent to Taiwan. Due to a storm, only one ship made it there and is presumed to have returned to Japan. In 1624, the Dutch East India Company (VOC) established Fort Zeelandia on the coastal islet of Tayouan (in modern Tainan ). The lowland areas were occupied by 11 Indigenous chiefdoms , some of which fell under Dutch control, including

620-492: A Republic, and to distribute land equally among the people." Revolutionary leader Sun Yat-sen proposed the name Chunghwa Minkuo as the assumed name of the new country when the revolution succeeded. During the 1950s and 1960s, after the ROC government had withdrawn to Taiwan, it was commonly referred to as "Nationalist China" (or " Free China ") to differentiate it from "communist China" (or " Red China "). Over subsequent decades,

744-596: A boost. One was the formation of an independent union at the Far East Textile Company after a two-year effort discredited the former management-controlled union. This was the first union that existed independently of the Kuomintang in Taiwan's post-war history (although the Kuomintang retained a minority membership on its committee). Rather than prevailing upon the state to use martial law to smash

868-526: A democracy. Chiang Ching-kuo , Chiang Kai-shek's son, served as premier from 1972 and rose to the presidency in 1978. He sought to move more authority to " bensheng ren " (residents of Taiwan before Japan's surrender and their descendants). Pro-democracy activists Tangwai emerged as the opposition. In 1979, the Kaohsiung Incident took place in Kaohsiung on Human Rights Day . Although

992-503: A direct result of domestic-market prioritization by state-owned enterprises (SOE) in its formative years. While the development of SMEs allowed better market adaptability and inter-firm partnerships, most companies in Taiwan remained original equipment manufacturers (OEM) and did not – other than firms like Acer and Asus – expand to original design manufacturing (OBM). These SMEs provide "incremental innovation" with regard to industrial manufacturing but do not, according to Dieter Ernst of

1116-650: A good proportion of islanders and re-privatizing businesses. After the end of World War II, the Chinese Civil War resumed. A series of Chinese Communist offensives in 1949 led to the capture of its capital Nanjing on 23 April and the subsequent defeat of the Nationalists on the mainland. The Communists founded the People's Republic of China on 1 October. On 7 December 1949, Chiang Kai-Shek evacuated his Nationalist government to Taiwan and made Taipei

1240-544: A little in the 80's. Health care, education, and quality of life also improved. The flexibility of the productive system and the industrial structure meant that Taiwanese companies had more chances to adapt themselves to the changing international situation and the global economy. The economist S. C. Tsiang played an influential role in shifting towards an export-oriented trade strategy. In 1954, he called for Taiwan to deal with its chronic shortage of foreign exchange by increasing exports rather than reduce imports. In 1958,

1364-951: A name for the island, or the part of it closest to Penghu . Elsewhere, the name was used for the Ryukyu Islands in general or Okinawa specifically; the name Ryūkyū is the Japanese form of Liúqiú . The name also appears in the Book of Sui (636) and other early works, but scholars cannot agree on whether these references are to the Ryukyus, Taiwan or even Luzon . The name Formosa ( 福爾摩沙 ) dates from 1542, when Portuguese sailors noted it on their maps as Ilha Formosa ( Portuguese for " beautiful island "). The name Formosa eventually "replaced all others in European literature" and remained in common use among English speakers into

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1488-508: A native from Taiwan , became President , and the KMT started a new path searching for democratic legitimacy. Two aspects must be remembered: the KMT was on the center of the structure and controlled the process, and that the structure was a net made of relations between the enterprises, between the enterprises and the State, between the enterprises and the global market thanks to trade companies and

1612-546: A process of enhancement and modernization of the industry, mainly in high technology (such as microelectronics , personal computers and peripherals ). One of the biggest and most successful Technology Parks was built in Hsinchu , near Taipei . Many Taiwanese brands became important suppliers of worldwide known firms such as DEC or IBM , while others established branches in Silicon Valley and other places inside

1736-469: A rebellion" (三年一反、五年一亂), primarily in reference to the period between 1820 and 1850. Many officials stationed in Taiwan called for an active colonization policy over the 19th century. In 1788, Taiwan Prefect Yang Tingli supported the efforts of a settler named Wu Sha to claim land held by the Kavalan people . In 1797, Wu Sha was able to recruit settlers with financial support from the local government but

1860-402: A specialist in manufacturing outsourcing . Recent developments include moving up the food chain in brand building and design. LCD manufacturing and LED lights are two newer sectors in which Taiwanese companies are moving. Taiwan also wants to move into the biotechnology sector, the creation of fluorescent pet fish and a research-useful fluorescent pig being two examples. Taiwan

1984-593: A surplus of $ 46.5 million. Along with Hong Kong, Singapore, and South Korea, Taiwan became known as one of the Four Asian Tigers . Because of the Cold War, most Western nations and the United Nations regarded the ROC as the sole legitimate government of China until the 1970s. Eventually, especially after Taiwan's expulsion from the United Nations , most nations switched diplomatic recognition to

2108-512: A two-year grace period, which few saw as feasible. Estimates say around 4,000 to 6,000 departed before the expiration of the grace period, and 200,000 to 300,000 followed during the subsequent disorder. On 25 May 1895, a group of pro-Qing high officials proclaimed the Republic of Formosa to resist impending Japanese rule. Japanese forces entered the capital at Tainan and quelled this resistance on 21 October 1895. About 6,000 inhabitants died in

2232-413: Is also a leading grower of orchids . Taiwan's information technology (IT) and electronics sector has been responsible for a vast supply of products since the 1980s. The Industrial Technology Research Institute (ITRI) was created in the 1973 to meet new demands from the burgeoning tech industry. This led to start-up companies like Taiwan Semiconductor Manufacturing Company (TSMC) and the construction of

2356-510: Is claimed by the PRC, which refuses to establish diplomatic relations with countries that recognise the ROC. Taiwan maintains official diplomatic relations with 11 out of 193 UN member states and the Holy See . Many others maintain unofficial diplomatic ties through representative offices and institutions that function as de facto embassies and consulates . International organizations in which

2480-572: Is contentious. Despite being a founding member, the ROC no longer represents China as a member of the United Nations after UN members voted in 1971 to recognize the PRC instead. The ROC maintained its claim of being the sole legitimate representative of China and its territory until 1991, when it ceased to regard the Chinese Communist Party as a rebellious group and acknowledged its control over mainland China. Taiwan

2604-412: Is formed by Taipei (the capital), New Taipei City , and Keelung . With around 23.9 million inhabitants, Taiwan is among the most densely populated countries . Taiwan has been settled for at least 25,000 years. Ancestors of Taiwanese indigenous peoples settled the island around 6,000 years ago. In the 17th century, large-scale Han Chinese immigration began under a Dutch colony and continued under

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2728-540: Is still heavily reliant on offshore capital and technologies, importing up to US$ 25 billion worth of machinery and electrical equipment from Mainland China, US$ 16 billion from Japan, and US$ 10 billion from the U.S. In fact, the TFT-LCD industry in Taiwan grew primarily from state-guided personnel recruitment from Japan and inter-firm technology diffusion to fend off Korean competitors. This is due to Taiwan's unique trend of export-oriented small and medium enterprises (SME) –

2852-514: Is the "Republic of China". Shortly after the ROC's establishment in 1912, while it was still located on the Chinese mainland, the government used the short form "China" ( Zhōngguó , 中國 ) to refer to itself, derived from zhōng ("central" or "middle") and guó ("state, nation-state"). The term developed under the Zhou dynasty in reference to its royal demesne , and was then applied to

2976-404: Is to become a country fluent in three languages ( Taiwanese ; Mandarin , the national language of China , and Taiwan ; and English , becoming a bridge between East and West). According to western financial markets, consolidation of the financial sector remains a concern as it continues at a slow pace, with the market split so small that no bank controls more than 10% of the market, and

3100-466: Is very good and continues to be improved, mainly in the west side of the island. Many infrastructure improvements are currently being pursued, such as the first rapid transit lines opening in Kaohsiung in 2008 and a doubling in size of Taipei's rapid transit system by 2013 now underway; the country's highways are very highly developed and in good maintenance and continue to be expanded, especially on

3224-485: The Formosa Air Battle was fought between American carriers and Japanese forces in Taiwan. Over 200,000 of Taiwanese served in the Japanese military , with over 30,000 casualties. Over 2,000 women, euphemistically called " comfort women ", were forced into sexual slavery for Imperial Japanese troops. After Japan's surrender , most Japanese residents were expelled . While Taiwan was under Japanese rule,

3348-544: The Hsinchu Science and Industrial Park (HSP), which includes around 520 high-tech companies and 150,000 employees. By 2015, a bulk of the global market share of motherboards (89.9 percent), Cable CPE (84.5 percent), and Notebook PCs (83.5 percent) comprise both offshore and domestic production. It placed second in producing Transistor-Liquid Crystal Display (TFT-LCD panels) (41.4 percent) and third for LCD monitors (27 percent) and LED (19 percent). Nonetheless, Taiwan

3472-694: The Huatan section of National freeway 1 in Changhua County . The lanes in both directions are listed below. Republic of China Taiwan , officially the Republic of China ( ROC ), is a country in East Asia . The main island of Taiwan , also known as Formosa , lies between the East and South China Seas in the northwestern Pacific Ocean , with the People's Republic of China (PRC) to

3596-582: The Kingdom of Middag . When the Dutch arrived, southwestern Taiwan was already frequented by a mostly transient Chinese population numbering close to 1,500. The VOC encouraged Chinese farmers to immigrate and work the lands under Dutch control and by the 1660s, some 30,000 to 50,000 Chinese were living on the island. Most of the farmers cultivated rice for local consumption and sugar for export while some immigrants engaged in deer hunting for export. In 1626,

3720-703: The Kingdom of Tungning , the first predominantly Han Chinese state in Taiwanese history . The island was annexed in 1683 by the Qing dynasty of China and ceded to the Empire of Japan in 1895. The Republic of China , which had overthrown the Qing in 1912 under the leadership of Sun Yat-sen , took control following the surrender of Japan in 1945. The immediate resumption of the Chinese Civil War resulted in

3844-669: The Legislative Yuan . The opposition contended that the trade pact would hinder the competency of SMEs, which encompassed 97.73 percent of total enterprises in Taiwan in 2016. The TPP, on the other hand, still presents an opportunity for Taiwan. After the APEC economic leaders' meeting in November 2017, President Tsai expressed deep support for the advancements made regarding the TPP – given that U.S. President Donald Trump pulled out of

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3968-486: The Philippines were launched from Taiwan. The Imperial Japanese Navy operated heavily from Taiwanese ports, and its think tank " South Strike Group " was based at Taihoku Imperial University . Military bases and industrial centers, such as Kaohsiung and Keelung , became targets of heavy Allied bombings , which destroyed many of the factories, dams, and transport facilities built by the Japanese. In October 1944,

4092-532: The Plains Indigenous peoples rarely rebelled against the government and the mountain Indigenous peoples were left to their own devices until the last 20 years of Qing rule. Most of the more than 100 rebellions during the Qing period, such as the Lin Shuangwen rebellion , were caused by Han settlers. Their frequency was evoked by the common saying "every three years an uprising, every five years

4216-604: The Republic of China was founded on mainland China on 1 January 1912 following the Xinhai Revolution of 1911. Central authority waxed and waned in response to warlordism (1915–28), Japanese invasion (1937–45), and the Chinese Civil War (1927–49), with central authority strongest during the Nanjing decade (1927–37), when most of China came under the control of the Kuomintang (KMT). During World War II ,

4340-623: The Ryukyu Islands 30,000 years ago. Slash-and-burn agriculture practices started at least 11,000 years ago. Stone tools of the Changbin culture have been found in Taitung and Eluanbi . Archaeological remains suggest they were initially hunter-gatherers that slowly shifted to intensive fishing. The distinct Wangxing culture , found in Miaoli County , were initially gatherers who shifted to hunting. Around 6,000 years ago, Taiwan

4464-589: The Spanish Empire occupied northern Taiwan as a trading base, first at Keelung and in 1628 building Fort Santo Domingo at Tamsui . This colony lasted until 1642, when the last Spanish fortress fell to Dutch forces. The Dutch then marched south, subduing hundreds of villages in the western plains. Following the fall of the Ming dynasty in Beijing in 1644, Koxinga (Zheng Chenggong) pledged allegiance to

4588-537: The Taiwan Area , and Taiwan underwent a process of localization in which Taiwanese culture and history were promoted over a pan-China viewpoint while assimilationist policies were replaced with support for multiculturalism . In 1996, Lee was re-elected in the first direct presidential election . During Lee's administration, both he and his party were involved in corruption controversies that came to be known as " black gold " politics. Chen Shui-bian of

4712-749: The Trans-Pacific Partnership (TPP) in 2013: New Zealand (ANZTEC) and Singapore (ASTEP). Exports to Singapore increased 5.6 percent between 2013 and 2014, but decreased 22 percent by 2016. In 2013, a follow-up bilateral trade agreement to the ECFA, the Cross-Strait Service Trade Agreement (CSSTA), faced large student-led demonstrations – the Sunflower Movement – in Taipei and an occupation of

4836-460: The United States and became known. The government also recommended the textile and clothing industries to enhance the quality and value of their products to avoid restrictive import quotas, usually measured in volume. The decade also saw the beginnings of a genuinely independent union movement after decades of repression. Some significant events occurred in 1977, which gave the new unions

4960-522: The United States . Higher salaries and better organized trade unions in Taiwan , together with the reduction of the Taiwanese export quotas meant that the bigger Taiwanese companies moved their production to China and Southeast Asia . The civil society in a now developed country, wanted democracy, and the rejection of the KMT dictatorship grew larger. A major step occurred when Lee Teng-hui ,

5084-475: The White Terror , as the period is known, 140,000 people were imprisoned or executed for being perceived as anti-KMT or pro-Communist. Many citizens were arrested, tortured, imprisoned or executed for their real or perceived link to the Chinese Communist Party. Since these people were mainly from the intellectual and social elite, an entire generation of political and social leaders was destroyed. Following

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5208-554: The Yongli Emperor and attacked the Qing dynasty along the southeastern coast of China. In 1661, under increasing Qing pressure, he moved his forces from his base in Xiamen to Taiwan, expelling the Dutch the following year. The Dutch retook the northern fortress at Keelung in 1664, but left the island in 1668 in the face of indigenous resistance. The Zheng regime, known as the Kingdom of Tungning , proclaimed its loyalty to

5332-477: The Zhu Yigui settler rebellion in 1722, separation of aboriginals and settlers became official policy via 54 stelae used to mark the frontier boundary. The markings were changed four times over the latter half of the 18th century due to continued settler encroachment. Two aboriginal affairs sub-prefects, one for the north and one for the south, were appointed in 1766. During the 200 years of Qing rule in Taiwan,

5456-451: The temporary capital of the ROC. Some 2 million people, mainly soldiers, members of the ruling Kuomintang and intellectual and business elites, were evacuated to Taiwan, adding to the earlier population of approximately six million. These people and their descendants became known in Taiwan as " waisheng ren " ( 外省人 ). The ROC government took to Taipei many national treasures and much of China's gold and foreign currency reserves. Most of

5580-773: The "Asian Silicon Valley" project. President Tsai herself was the chairperson for TaiMed Biologics, a state-led start-up company for biopharmaceutical development with Morris Chang, the CEO of TSMC, as an external adviser. On 10 November 2016, the Executive Yuan formally endorsed a biomedical promotion plan with a budget of NT$ 10.94 billion (US$ 346.32 million). At the opening ceremony for the Asia Silicon Valley Development Agency (ASVDA) in December 2016, Vice President Chen Chien-jen emphasized

5704-595: The "Beijing factor" has led to the deliberate isolation of Taiwan from potential FTAs. In signing the Economic Cooperation Framework Agreement (ECFA) with China on 29 June 2010 – which permitted trade liberalization and an "early harvest" list of tariff cuts – former president Ma Ying-jeou wanted to not only affirm a stable economic relationship with China, but also to assuage its antagonism towards Taiwan's involvement in other FTAs. Taiwan later signed FTAs with two founding members of

5828-564: The 1943 Cairo Declaration specified that Formosa and the Pescadores be returned by Japan to the ROC; the terms were later repeated in the 1945 Potsdam Declaration that Japan agreed to carry out in its instrument of surrender . On 25 October 1945 , Japan surrendered Taiwan to the ROC, and in the Treaty of San Francisco , Japan formally renounced their claims to the islands, though without specifying to whom they were surrendered. In

5952-490: The 1950s and were defeated by Communists in 1961 . Since losing control of mainland China, the Kuomintang continued to claim sovereignty over 'all of China', which it defined to include mainland China (including Tibet), Taiwan (including Penghu), Outer Mongolia , and other minor territories . Martial law , declared on Taiwan in May 1949, continued to be in effect until 1987, and was used to suppress political opposition. During

6076-401: The 20th century. In 1603, a Chinese expedition fleet anchored at a place in Taiwan called Dayuan, a variant of "Taiwan". In the early 17th century, the Dutch East India Company established a commercial post at Fort Zeelandia (modern-day Anping ) on a coastal sandbar called "Tayouan", after their ethnonym for a nearby Taiwanese aboriginal tribe, possibly Taivoan people . This name

6200-767: The DPP was elected as the first non-KMT president in 2000 . However, Chen lacked legislative majority. The opposition KMT developed the Pan-Blue Coalition with other parties, mustering a slim majority over the DPP-led Pan-Green Coalition . Polarized politics emerged in Taiwan with the Pan-Blue preference for eventual Chinese unification , while the Pan-Green prefers Taiwanese independence . Chen's reference to " One Country on Each Side " of

6324-703: The East–West Centre, a think-tank in Honolulu, surpass the "commodity trap", which stifles investment in branding and R&D projects. The Taiwanese president Tsai Ing-wen , of the Democratic Progressive Party (DPP) enacted policies building on the continued global influence of Taiwan's IT industry. To revamp and reinvigorate Taiwan's slowing economy, her "5+2" innovative industries initiative aims to boost key sectors such as biotech, sustainable energy, national defense, smart machinery, and

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6448-511: The GDP. The World Economic Forum's Global Competitiveness Report 2017–2018 profiled up to 140 countries, listing Taiwan as 16th place in university-industry collaboration in R&;D, 10th place in company spending on R&D, and 22nd place in capacity for innovation. Approved overseas Chinese and foreign investment totaled US$ 11 billion in 2016, a massive increase from US$ 4.8 billion in 2015. However,

6572-497: The Indigenous peoples ended with the loss of a third of the army after fierce resistance from the Mkgogan and Msbtunux peoples. Liu resigned in 1891 due to criticism of these costly projects. By the end of the Qing period, the western plains were fully developed as farmland with about 2.5 million Chinese settlers. The mountainous areas were still largely autonomous under the control of Indigenous peoples. Indigenous land loss under

6696-533: The Investment Commission of the Ministry of Economic Affairs' (MOEAIC) monthly report from October 2017 estimated a decline in total foreign direct investment (between January and October 2017) to US$ 5.5 billion, which is a 46.09 percent decrease from the same time period of 2016 (US$ 10.3 billion). Debate on opening " Three Links " with the People's Republic of China were completed in 2008, with

6820-524: The Kuomintang government instituted many laws and land reforms that it had never effectively enacted on mainland China. A land reform law, inspired by the same one that the Americans were enacting in occupied Japan , removed the landlord class (similar to what happened in Japan), and created a higher number of peasants who, with the help of the state , increased the agricultural output dramatically. This

6944-485: The Legislative Yuan and prevented the ratification of the Cross-Strait Service Trade Agreement in what became known as the Sunflower Student Movement . The movement gave rise to youth-based third parties such as the New Power Party , and is viewed to have contributed to the DPP's victories in the 2016 presidential and legislative elections , the latter of which resulted in the first DPP legislative majority in Taiwanese history. In January 2024, William Lai Ching-te of

7068-415: The Musha Incident of 1930. Intellectuals and laborers who participated in left-wing movements were also arrested and massacred (e.g. Chiang Wei-shui and Masanosuke Watanabe ). Around 1935, the Japanese began an island-wide assimilation project . Chinese-language newspapers and curriculums were abolished. Taiwanese music and theater were outlawed. A national Shinto religion was promoted in parallel with

7192-519: The PRC participates either refuse to grant membership to Taiwan or allow it to participate on a non-state basis. Domestically, the major political contention is between parties favoring eventual Chinese unification and promoting a pan-Chinese identity, contrasted with those aspiring to formal international recognition and promoting a Taiwanese identity ; in the 21st century, both sides have moderated their positions to broaden their appeal. In his Daoyi Zhilüe (1349), Wang Dayuan used " Liuqiu " as

7316-440: The PRC under a policy of " mutual non-denial ". Under Ma, Taiwan and China opened up direct flights and cargo shipments. The PRC government even made the atypical decision to not demand that Taiwan be barred from the annual World Health Assembly . Ma also made an official apology for the White Terror. However, closer economic ties with China raised concerns about its political consequences. In 2014, university students occupied

7440-406: The PRC. Until the 1970s, the ROC government was regarded by Western critics as undemocratic for upholding martial law, severely repressing any political opposition, and controlling the media. The KMT did not allow the creation of new parties and competitive democratic elections did not exist. From the late 1970s to the 1990s, Taiwan underwent political and social reforms that transformed it into

7564-439: The Qing administration into acculturated aborigines who had adopted Han culture and non-acculturated aborigines who had not. The Qing did little to administer or subjugate them. When Taiwan was annexed, there were 46 aboriginal villages under its control, likely inherited from the Kingdom of Tungning. During the early Qianlong period there were 93 acculturated villages and 61 non-acculturated villages that paid taxes. In response to

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7688-400: The Qing occurred at a relatively slow pace due to the absence of state-sponsored land deprivation for the majority of Qing rule. Following the Qing defeat in the First Sino-Japanese War (1894–1895), Taiwan, its associated islands, and the Penghu archipelago were ceded to Japan by the Treaty of Shimonoseki . Inhabitants wishing to remain Qing subjects had to move to mainland China within

7812-519: The ROC transitioned from a one-party state under martial law to a multi-party democracy , with democratically elected presidents beginning in 1996 . Taiwan's export-oriented economy is the 21st-largest in the world by nominal GDP and the 20th-largest by PPP measures, with a focus on steel, machinery, electronics, and chemicals manufacturing. Taiwan is a developed country . It is ranked highly in terms of civil liberties , healthcare , and human development . The political status of Taiwan

7936-449: The Republic of China military regime of Chen Yi overprinted the Taiwanese dollar against the previous Taiwanese yen in the Japanese era , it became clear that a new and stable currency was needed. Along with the $ 4 billion in financial aid and soft credit provided by the US (as well as the indirect economic stimulus of US food and military aid) over the 1945–1965 period, Taiwan had the necessary capital to restart its economy. Further,

8060-537: The Republic of China has become commonly known as "Taiwan", after the main island. To avoid confusion, the ROC government in Taiwan began to put "Taiwan" next to its official name in 2005. In ROC government publications, the name is written as "Republic of China (Taiwan)", "Republic of China/Taiwan", or sometimes "Taiwan (ROC)". "Taiwan Area" was defined to mean the island of Taiwan, Penghu, Kinmen, Matsu, and other territory under ROC's effective control, in contrast to "Mainland Area" which refers to ROC territory outside

8184-484: The South China Sea . The ROC also briefly retained control of the entirety of Hainan , parts of Zhejiang ( Chekiang )—specifically the Dachen Islands and Yijiangshan Islands —and portions of Tibet , Qinghai , Xinjiang and Yunnan . The Communists captured Hainan in 1950, captured the Dachen Islands and Yijiangshan Islands during the First Taiwan Strait Crisis in 1955 and defeated the ROC revolts in Northwest China in 1958. ROC forces entered Burma and Thailand in

8308-400: The Taiwan Area and under Chinese Communist control. The Republic of China participates in most international forums and organizations under the name " Chinese Taipei " as a compromise with the People's Republic of China (PRC). For instance, it is the name under which it has participated in the Olympic Games as well as the APEC . "Taiwan authorities" is sometimes used by the PRC to refer to

8432-412: The Taiwan Strait undercut cross-Strait relations in 2002. He pushed for the first national referendum on cross-Strait relations, and called for an end to the National Unification Council . State-run companies began dropping "China" references in their names and including "Taiwan". In 2008, referendums asked whether Taiwan should join the UN. This act alienated moderate constituents who supported

8556-456: The Taiwanese government is obligated, by the WTO accession treaty, to open this sector between 2005 and 2008. However, many financial analysts estimate such concerns are based upon mirror-imaging of the Western model and do not take into account the already proven Asian Tiger model. Yet, recently, credit card debt has become a major problem, as the ROC does not have an individual bankruptcy law. Generally, transportation infrastructure

8680-404: The area around Luoyi (present-day Luoyang ) during the Eastern Zhou and later to China's Central Plain , before being used as an occasional synonym for the state during the Qing era. The name of the republic had stemmed from the party manifesto of the Tongmenghui in 1905, which says the four goals of the Chinese revolution was "to expel the Manchu rulers, to revive Chunghwa , to establish

8804-480: The benefits of low salaries, the lack of environmental laws and controls, a well-educated and capable workforce, and the support of the government . But the nucleus of the industrial structure was national, and it was composed by a large number of small and medium-sized enterprises, created within families with the family savings, and savings cooperatives nets called hui ( Chinese : 會 ; pinyin : Huì ; Pe̍h-ōe-jī : Hōe ; Pha̍k-fa-sṳ : Fi ). They had

8928-473: The big foreign companies got contracts with this huge net of small sized, familiar and national companies, which were a very important percentage of the industrial output. Foreign investment never represented an important component in the Taiwanese economy, with the notable exception of the electronic market. For instance, in 1981, direct foreign investment was a mere 2% of the GNP , foreign companies employed 4.8% of

9052-405: The building of these projects, going the build-operate-transfer route, but significant public financing has still been required and several scandals have been uncovered. Nevertheless, it is hoped that the completion of these projects will be a big economic stimulus, just as the subway in Taipei has revived the real estate market there. Taiwan continues to rely heavily on its technology sector,

9176-551: The capital. The Qing government generally tried to restrict migration to Taiwan throughout the duration of its administration because it believed that Taiwan could not sustain too large a population without leading to conflict. After the defeat of the Kingdom of Tungning, most of its population in Taiwan was sent back to the mainland, leaving the official population count at only 50,000, including 10,000 troops. Despite official restrictions, officials in Taiwan solicited settlers from

9300-520: The colonization of the area but were ignored. The Qing took on a more active colonization policy after 1874 when Japan invaded Indigenous territory in southern Taiwan and the Qing government was forced to pay an indemnity for them to leave. The administration of Taiwan was expanded with new prefectures, sub-prefectures, and counties. Mountain roads were constructed to make inner Taiwan more accessible. Restrictions on entering Taiwan were ended in 1875 and agencies for recruiting settlers were established on

9424-625: The development of textile, food, and other labor-intensive industries. As the Chinese Civil War continued, the government built up military fortifications throughout Taiwan. Veterans built the Central Cross-Island Highway through the Taroko Gorge in the 1950s. During the Second Taiwan Strait Crisis in 1958, Nike Hercules missiles were added to the formation of missile batteries throughout

9548-928: The eruption of the Korean War , US President Harry S. Truman dispatched the United States Seventh Fleet into the Taiwan Strait to prevent hostilities between the ROC and the PRC. The United States also passed the Sino-American Mutual Defense Treaty and the Formosa Resolution of 1955 , granting substantial foreign aid to the KMT regime between 1951 and 1965. The US foreign aid stabilized prices in Taiwan by 1952. The KMT government instituted many laws and land reforms that it had never effectively enacted on mainland China. Economic development

9672-520: The expropriation of businesses into government-operated monopolies, and the hyperinflation of 1945–1949. The shooting of a civilian on 28 February 1947 triggered island-wide unrest, which was suppressed with military force in what is now called the February 28 Incident . Mainstream estimates of the number killed range from 18,000 to 30,000. Chen was later replaced by Wei Tao-ming , who made an effort to undo previous mismanagement by re-appointing

9796-527: The gold was used to pay soldiers' salaries, with some used to issue the New Taiwan dollar , part of a price stabilization program to slow inflation in Taiwan. After losing control of mainland China in 1949, the ROC retained control of Taiwan and Penghu ( Taiwan, ROC ), parts of Fujian ( Fujian, ROC )—specifically Kinmen, Wuqiu (now part of Kinmen) and the Matsu Islands and two major islands in

9920-577: The government in Taiwan. Taiwan was joined to the Asian mainland in the Late Pleistocene , until sea levels rose about 10,000 years ago. Human remains and Paleolithic artifacts dated 20,000 to 30,000 years ago have been found. Study of the human remains suggested they were Australo-Papuan people similar to Negrito populations in the Philippines. Paleolithic Taiwanese likely settled

10044-458: The increasing importance of enhancing not only local R&D capabilities, but also appealing to foreign investment. For example, the HSP now focuses 40 percent of its total workforce on "R&D and technology development". R&D expenditures have been gradually increasing: In 2006, it amounted to NT$ 307 billion, but it increased to NT$ 483.5 billion (US$ 16 billion) in 2014, approximately 3 percent of

10168-566: The initial fighting and some 14,000 died in the first year of Japanese rule. Another 12,000 "bandit-rebels" were killed from 1898 to 1902. Subsequent rebellions against the Japanese (the Beipu uprising of 1907, the Tapani incident of 1915, and the Musha incident of 1930) were unsuccessful but demonstrated opposition to Japanese rule. The colonial period was instrumental to the industrialization of

10292-508: The international economic exchanges. Native Taiwanese were largely excluded from the mainlanders dominated government, so many went into the business world. In 1952, Taiwan had a per capita gross national product (GNP) of $ 170, placing the island's economy squarely between Zaire and Congo. But, by 2018 Taiwan's per capita GNP, adjusted for purchasing power parity (PPP), had soared to $ 53,074, around or above some developed West European economies and Japan. According to economist Paul Krugman ,

10416-471: The island's most important trading center and served as its capital until 1887. Use of the current Chinese name ( 臺灣 / 台灣 ) became official as early as 1684 during the Qing dynasty with the establishment of Taiwan Prefecture centered in modern-day Tainan . Through its rapid development the entire Taiwanese mainland eventually became known as "Taiwan". The official name of the country in English

10540-434: The island, with its expansion of railways and other transport networks, the building of an extensive sanitation system, the establishment of a formal education system , and an end to the practice of headhunting . The resources of Taiwan were used to aid the development of Japan. The production of cash crops such as sugar greatly increased, and large areas were therefore diverted from the production of rice. By 1939, Taiwan

10664-483: The island. During the 1960s and 1970s, the ROC maintained an authoritarian, single-party government under the Kuomintang's Dang Guo system while its economy became industrialized and technology-oriented. This rapid economic growth, known as the Taiwan Miracle , occurred following a strategy of prioritizing agriculture, light industries, and heavy industries, in that order. Export-oriented industrialization

10788-448: The land ownership of Taiwanese farmers. It removed the rent burdens on them, with former land owners using the government compensation to become the new capitalist class. He promoted a mixed economy of state and private ownership with economic planning. Chiang also promoted a 9-years compulsory education and the importance of science in Taiwanese education and values. These measures generated great success with consistent and strong growth and

10912-470: The late 1990s. A key factor to understand this new environment is the rise of China, offering the same conditions that made possible, 40 years ago, the Taiwan Miracle (a quiet political and social environment, cheap and educated workers, absence of independent trade unions). One major difference with Taiwan is the focus on English education. Mirroring Hong Kong and Singapore , the ultimate goal

11036-476: The less developed and less populated east coast, and a controversial electronic toll system has recently been implemented. The completion of the Taiwan High Speed Rail service connecting all major cities on the western coast, from Taipei to Kaohsiung is considered to be a major addition to Taiwan's transportation infrastructure. The ROC government has chosen to raise private financing in

11160-462: The loss of the Chinese mainland to Communist forces , who established the People's Republic of China and the flight of the ROC central government to Taiwan in 1949. The effective jurisdiction of the ROC has since been limited to Taiwan, Penghu , and smaller islands. The early 1960s saw rapid economic growth and industrialization called the " Taiwan Miracle ". In the late 1980s and early 1990s,

11284-675: The main island of Taiwan. After Chiang Ching-kuo's death in 1988, Lee Teng-hui became the first president of the ROC born in Taiwan. Lee's administration oversaw a period of democratization in which the Temporary Provisions against the Communist Rebellion were abolished and the Additional Articles of the Constitution were introduced. Congressional representation was allocated to only

11408-824: The mainland was dropped in June 2008, when the new Kuomintang government relaxed the rules to invest in the PR China. Dialogue through semi-official organisations (the SEF and the ARATS) reopened on 12 June 2008 on the basis of the 1992 Consensus, with the first meeting held in Beijing . Taiwan hopes to become a major operations center in East Asia. While China already has international free trade agreements (FTA) with numerous countries through bilateral relations and regional organizations,

11532-523: The mainland, but efforts to promote settlement ended soon after. In 1884, Keelung in northern Taiwan was occupied during the Sino-French War but the French forces failed to advance any further inland while their victory at Penghu in 1885 resulted in disease and retreat soon afterward as the war ended. Colonization efforts were renewed under Liu Mingchuan . In 1887, Taiwan's status was upgraded to

11656-612: The mainland, causing tens of thousands of annual arrivals by 1711. A permit system was officially recorded in 1712, but it likely existed as early as 1684; its restrictions included only allowing those to enter who had property on the mainland, family in Taiwan, and who were not accompanied by wives or children. Many of the male migrants married local Indigenous women. Over the 18th century, restrictions were relaxed. In 1732, families were allowed to move to Taiwan. By 1811, there were more than two million Han settlers in Taiwan, and profitable sugar and rice production industries provided exports to

11780-512: The mainland. In 1875, restrictions on entering Taiwan were repealed. Three counties nominally covered the entire western plains, but actual control was restricted to a smaller area. A government permit was required for settlers to go beyond the Dajia River . Qing administration expanded across the western plains area over the 18th century due to continued illegal crossings and settlement. The Taiwanese Indigenous peoples were categorized by

11904-457: The northwest, Japan to the northeast, and the Philippines to the south. It has an area of 35,808 square kilometres (13,826 square miles), with mountain ranges dominating the eastern two-thirds and plains in the western third, where its highly urbanized population is concentrated. The combined territories under ROC control consist of 168 islands in total covering 36,193 square kilometres (13,974 square miles). The largest metropolitan area

12028-600: The overthrown Ming, but ruled independently. However, Zheng Jing 's return to China to participate in the Revolt of the Three Feudatories paved the way for the Qing invasion and occupation of Taiwan in 1683. Following the defeat of Koxinga 's grandson by an armada led by Admiral Shi Lang in 1683, the Qing dynasty formally annexed Taiwan in May 1684, making it a prefecture of Fujian province while retaining its administrative seat (now Tainan) under Koxinga as

12152-441: The policymaker K. Y. Yin pushed for the adoption of Tsiang's ideas. In 1959, a 19-point program of Economic and Financial Reform, liberalized market controls, stimulated exports and designed a strategy to attract foreign companies and foreign capital. An exports processing area was created in Kaohsiung and in 1964, General Instruments pioneered in externalizing electronic assembly in Taiwan. Japanese companies moved in, reaping

12276-453: The property of the government ), and import licenses, the state oriented the Taiwanese economy to import substitution industrialization , creating initial capitalism in a fully protected market . It also, with the help of USAID , created a massive industrial infrastructure, communications, and developed the educational system. Several government bodies were created and four-year plans were also enacted. Between 1952 and 1982, economic growth

12400-448: The protest was rapidly crushed by the authorities, it is considered as the main event that united Taiwan's opposition. In 1984, Chiang Ching-kuo selected Lee Teng-hui as his vice-president. After the Democratic Progressive Party (DPP) was (illegally) founded as the first opposition party in Taiwan to counter the KMT in 1986, Chiang announced that he would allow the formation of new parties. On 15 July 1987, Chiang lifted martial law on

12524-734: The rapid growth was made possible by increases in capital and labor but not an increase in efficiency. In other words, the savings rate increased and work hours were lengthened, and many more people, such as women, entered the work force. Dwight Perkins and others cite certain methodological flaws in Krugman and Alwyn Young's research, and suggest that much of Taiwan's growth can be attributed to increases in productivity. These productivity boosts were achieved through land reform, structural change (urbanization and industrialization), and an economic policy of export promotion rather than import substitution. Economic growth has become much more modest since

12648-722: The ruling Democratic Progressive Party won Taiwan's presidential elections . However, no party won a majority in the simultaneous Taiwan's legislative election for the first time since 2004, meaning 51 seats for the Democratic Progressive Party (DPP), 52 seats for the Kuomintang (KMT), and the Taiwan People's Party (TPP) secured eight seats. Taiwan Miracle The Taiwan Miracle ( Chinese : 臺灣奇蹟 ; pinyin : Táiwān Qíjī ; Pe̍h-ōe-jī : Tâi-oân Kî-chek ) or Taiwan Economic Miracle refers to Taiwan 's rapid economic development to

12772-466: The same year, Japan and the ROC signed a peace treaty . While initially enthusiastic about the return of Chinese administration and the Three Principles of the People , Formosans grew increasingly dissatisfied about being excluded from higher positions, the postponement of local elections even after the enactment of a constitution on the mainland, the smuggling of valuables off the island,

12896-402: The security risk of economic dependence on PR China being the biggest barrier. By decreasing transportation costs, it was hoped that more money will be repatriated to Taiwan and that businesses will be able to keep operations centers in Taiwan while moving manufacturing and other facilities to mainland China. A law forbidding any firm investing in the PR China more than 40% of its total assets on

13020-490: The southern coast of Taiwan, mostly for seasonal fishing but also subsistence farming and trading, by the early 17th century. In 1603, Chen Di visited Taiwan on an anti- wokou expedition and recorded an account of the Taiwanese Indigenous people. In 1591, Japan sent envoys to deliver a letter requesting tribute relations with Taiwan. They found no leader to deliver the letter to and returned home. In 1609,

13144-462: The stabilization of inflation. In the 1970s, protectionism was on the rise, and the United Nations switched recognition from the government of the Republic of China to the government of the People's Republic of China as the sole legitimate representative of mainland China . It was expelled by General Assembly Resolution 2758 and replaced in all UN organs with the PRC. The Kuomintang began

13268-494: The status quo, as well as those with cross-strait economic ties. It also created tension with the mainland and disagreements with the United States. Chen's administration was also dogged by public concerns over reduced economic growth, legislative gridlock, and corruption investigations . The KMT's nominee Ma Ying-jeou won the 2008 presidential election on a platform of increased economic growth and better ties with

13392-561: The support of the government in the form of subsidies and credits loaned by the banks. Most of these societies appeared for the first time in rural zones near metropolitan areas, where families shared work (in the parcels they owned and in the industrial workshops at the same time). For instance, in 1989 in Changhua , small enterprises produced almost 50% of the world's umbrellas. The State attracted foreign companies in order to obtain more capital and to get access to foreign markets, but

13516-517: The support of the government, grew, and became in the 90's huge companies totally internationalized. Most of the development was thanks to the flexibility of family businesses which produced for foreign traders established in Taiwan and for international trade nets with the help of intermediaries. After retreating to Taiwan, Chiang learned from his mistakes and failures in the mainland and blamed them for failing to pursue Sun Yat-sen's ideals of Tridemism and welfarism. Chiang's land reform more than doubled

13640-468: The suppression of traditional Taiwanese beliefs. Starting from 1940, families were also required to adopt Japanese surnames , although only 2% had done so by 1943. By 1938, 309,000 Japanese were residing in Taiwan. During the Second World War, the island was developed into a naval and air base while its agriculture, industry, and commerce suffered. Air attacks and the subsequent invasion of

13764-568: The total workforce, their production was 13.9% of the total production and their exports were 25.6% of nationwide exports. Access to the global markets was facilitated by the Japanese companies and by the American importers, who wanted a direct relationship with the Taiwanese brands. No big multinational corporations were created (like in Singapore ), or huge national conglomerates (like South Korean chaebols ), but some industrial groups, with

13888-546: The transformation of Kaohsiung into a special municipality on par with Taipei. In the 1970s, Taiwan became the second fastest growing economy in Asia. Real growth in GDP averaged over 10 percent. In 1978, the combination of tax incentives and a cheap, well-trained labor force attracted investments of over $ 1.9 billion from overseas Chinese , the United States, and Japan. By 1980, foreign trade reached $ 39 billion per year and generated

14012-704: The union, the management adopted the more cautious approach of buying workers' votes at election times. However, such attempts repeatedly failed and, by 1986, all of the elected leaders were genuine unionists. Another, and, historically, the most important, was the now called " Zhongli incident ". In the 1980s, Taiwan had become an economic power, with a mature and diversified economy, solid presence in international markets and huge foreign exchange reserves . Its companies were able to go abroad, internationalize their production, investing massively in Asia (mainly in People's Republic of China ) and in other Organisation for Economic Co-operation and Development countries, mainly in

14136-563: Was achieved by tax rebate for exports, removal of import restriction, moving from multiple exchange rate to single exchange rate system, and depreciation of the New Taiwan dollar. Infrastructure projects such as the Sun Yat-sen Freeway , Taoyuan International Airport , Taichung Harbor , and Jinshan Nuclear Power Plant were launched, while the rise of steel, petrochemical, and shipbuilding industries in southern Taiwan saw

14260-421: Was also adopted into the Chinese vernacular as the name of the sandbar and nearby area (Tainan). The modern word "Taiwan" is derived from this usage, which is written in different transliterations ( 大員 ， 大圓 ， 大灣 ， 臺員 ， 臺圓 or 臺窩灣 ) in Chinese historical records. The area occupied by modern-day Tainan was the first permanent settlement by both European colonists and Chinese immigrants. The settlement grew to be

14384-569: Was attached to Jinjiang . The Yuan dynasty officially incorporated Penghu under the jurisdiction of Tong'an County in 1281. Penghu was evacuated in the 15th century by the Ming dynasty as part of their maritime ban , which lasted until the late 16th century. In 1349, Wang Dayuan provided the first written account of a visit to Taiwan. By the 1590s, a small number of Chinese from Fujian had started cultivating land in southwestern Taiwan. Some 1,500-2,000 Chinese lived or stayed temporarily on

14508-429: Was completed in 1974, and the entire highway was opened in 1978. A 20.7 km (12.9 mi) viaduct on top of the freeway between Xizhi and Wugu was completed in 1997 in order to expand the capacity of the road. Saudi Arabia supported the construction of the highway by providing an interest free loan. The 2019 Han Kuang Exercise featured takeoff and landing practice by Republic of China Air Force aircraft on

14632-575: Was encouraged by American aid and programs such as the Joint Commission on Rural Reconstruction , which turned the agricultural sector into the basis for later growth. Under the combined stimulus of the land reform and the agricultural development programs, agricultural production increased at an average annual rate of 4 percent from 1952 to 1959. The government also implemented a policy of import substitution industrialization , attempting to produce imported goods domestically. The policy promoted

14756-456: Was on average 8.7%, and between 1983 and 1986 at 6.9%. The gross national product grew by 360% between 1965 and 1986. The percentage of global exports was over 2% in 1986, over other recently industrialized countries, and the global industrial production output grew a further 680% between 1965 and 1986. The social gap between the rich and the poor fell (Gini: 0.558 in 1953, 0.303 in 1980), even lower than some Western European countries, but it grew

14880-580: Was settled by farmers of the Dapenkeng culture , most likely from what is now southeast China. These cultures are the ancestors of modern Taiwanese Indigenous peoples and the originators of the Austronesian language family . Trade with the Philippines persisted from the early 2nd millennium BCE, including the use of Taiwanese jade in the Philippine jade culture . The Dapenkeng culture

15004-716: Was succeeded by a variety of cultures throughout the island, including the Tahu and Yingpu ; the Yuanshan were characterized by rice harvesting. Iron appeared in such cultures as the Niaosung culture , influenced by trade with China and Maritime Southeast Asia . The Plains Indigenous peoples mainly lived in permanent walled villages, with a lifestyle based on agriculture , fishing , and hunting . They had traditionally matriarchal societies . The Penghu Islands were inhabited by Han Chinese fishermen by 1171, and in 1225 Penghu

15128-406: Was the first excedent accumulation source. It inverted capital creation, and liberated the agricultural workforce to work in the urban sectors. However, the government imposed on the peasants an unequal exchange with the industrial economy, with credit and fertilizer controls and a non monetary exchange to trade agrarian products (machinery) for rice. With the control of the banks (at the time, being

15252-416: Was the seventh-greatest sugar producer in the world. The Han and Indigenous populations were classified as second- and third-class citizens, and many prestigious government and business positions were closed to them. After suppressing Han guerrillas in the first decade of their rule, Japanese authorities engaged in bloody campaigns against the Indigenous people residing in mountainous regions, culminating in

15376-405: Was unable to officially register the land. In the early 1800s, local officials convinced the emperor to officially incorporate the area by playing up the issue of piracy if the land was left alone. In 1814, some settlers attempted to colonize central Taiwan by fabricating rights to lease aboriginal land. They were evicted by government troops two years later. Local officials continued to advocate for

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