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Republic of China

2007 Schools Wikipedia Selection. Related subjects: Asian Countries;
Countries

          Today the Republic of China is often known as " Chinese Taipei"
          or "Taiwan". It should not be confused with the People's
          Republic of China (PRC).

                               中華民國
   Jhonghuá Mínguó
   Republic of China

   Flag of Taiwan National Emblem of Taiwan
   Flag           National Emblem
   Motto: none
   Anthem: National Anthem of the Republic of China
   Location of Taiwan
         Capital        Taipei ( de facto)
                        Nanking ( de jure)^1
                        25°02′N 121°38′E
       Largest city     Taipei
    Official languages  Mandarin (Guóyǔ)
   Government           Semi-presidential system
    - President         Chen Shui-bian
    - Vice President    Annette Lu
    - Premier           Su Tseng-chang
      Establishment     Xinhai Revolution
    - Republic declared October 10, 1911
    - Established       January 1, 1912
    - Relocated to
      Taiwan            December 7, 1949
                                   Area
    - Total             35,980 km² ( 137th)
                        13,892 sq mi
    - Water (%)         10.3
                                Population
    - 2006 estimate     23,036,087 ( 47th^2)
    - Density           635/km² ( 14th^2)
                        1,658/sq mi
        GDP ( PPP)      2005 estimate
    - Total             $631.2 billion ( 16th)
    - Per capita        $27,600 ( 24th)
       HDI  (2003)      0.910 (high) ( 25th ^3)
         Currency       New Taiwan Dollar (NT$) ( TWD)
        Time zone       CST ( UTC +8)
       Internet TLD     .tw
       Calling code     +886
   ^1 Under KMT administration, Nanking appeared in government-sponsored
   maps and publications as the official capital while Taipei was labelled
   at the provisional capital. The current DPP administration has dropped
   such references.
   ^2 Rank based on 2006 figures.
   ^3 If ranked. Due to its political status, the UN has not calculated an
   HDI for the ROC. However, the ROC government calculated its HDI for
   2003 to be 0.910; if included among UN HDI figures, the ROC would rank
   25th (high), between Singapore and Greece.

   The Republic of China (R.O.C.; Traditional Chinese: 中華民國; Simplified
   Chinese: 中华民国; Hanyu Pinyin: Zhōnghuá Mínguó; Tongyong Pinyin: Jhonghuá
   Mínguó; Wade-Giles: Chung-hua Min-kuo) is a state in East Asia. It was
   formerly the national government of all China. However, it lost control
   of the mainland to the People's Republic of China (PRC) as a result of
   the Chinese Civil War in 1949, and since then its administration has
   been restricted to the island groups of Taiwan (Formosa), the
   Pescadores, Kinmen, and Matsu. Over subsequent decades, the Republic of
   China has been commonly referred to as "Taiwan", and since the late
   1970's the name "China" has been increasingly used to refer to the
   People's Republic of China. For political reasons, the Republic of
   China is commonly referred to as " Chinese Taipei" in international
   organizations.

   The ROC was established in 1912, replacing the last Chinese dynasty
   (the Qing) and ending over 2,000 years of imperial rule in China. It is
   thus the oldest surviving republic in East Asia. The rule of the
   Republic of China in Mainland China was scarred by warlordism, Japanese
   invasion as a predecessor to World War II, and civil war. Major
   fighting in the civil war ended in 1950 with the Communist Party of
   China (CPC) in control of most of Mainland China, and the ROC in
   control of Taiwan and several offshore islands ( Kinmen, Penghu, and
   Matsu). The CPC proclaimed a new state, the People's Republic of China
   (PRC) in Beijing in 1949. The Republic of China on Taiwan continued to
   regard itself as the sole and legitimate government of all of China.
   This was a claim recognized by most states until the late 1970s.

   Starting in 1928, the Republic of China was ruled by the Kuomintang
   (KMT) as an authoritarian dictatorship. In the 1950s and 1960s, the KMT
   took steps to reform the economy by reducing corruption and reforming
   land policies which coincided with a period of great economic growth
   despite the constant threat of war and civil unrest. The political
   climate changed in the 1980s and 1990s as the government actively
   pursued a transition to a democratic system, beginning with the first
   direct presidential election in 1996 and culminating in the 2000
   election of President Chen Shui-bian, the first non-KMT president
   elected.

Political status

   The political status of Taiwan is a contentious issue. The PRC claims
   that the ROC government is illegitimate, referring to it as the "Taiwan
   Authority". The KMT-ruled ROC proclaimed itself the sole legitimate
   government of China. Although the ROC under the administration of
   pro-independence President Chen Shui-bian does not actively claim
   jurisdiction over all of China, the national boundaries of the ROC have
   not been redrawn and its outstanding territorial claims from the late
   1940s have not been revised. Thus, the claimed borders of the ROC
   continue to include technically mainland China, Hainan and several
   off-shore islands, Taiwan, Mongolia, northern Myanmar (Burma), and Tuva
   (now Russian territory)　as part of the ROC.

   The political environment is complicated by the potential for military
   conflict should overt actions toward independence or reunification be
   taken. It is the policy of the PRC to use force to ensure reunification
   if peaceful reunification fails, as stated in its anti-secession law,
   and there are substantial military installations on the Fujian coast
   for this reason. The United States has provided military training and
   arms sales to the ROC. However, the current status quo, as defined by
   the US, is supported on a quid pro quo basis between both Chinese
   states. The PRC is expected to "use no force or threat to use force
   against Taiwan," and the ROC is to "exercise prudence in managing all
   aspects of cross-strait relations." Both are to refrain from performing
   actions or espousing statements "that would unilaterally alter Taiwan's
   status."

   Within the ROC, opinions are polarized between those supporting
   reunification, represented by the Pan-Blue Coalition of parties, and
   those supporting independence, represented by the Pan-Green Coalition
   of parties. The Kuomintang, which is the largest Pan-Blue party,
   supports the status quo for the indefinite future with a stated
   ultimate goal of reunification. However, it does not support
   unification in the short term with the PRC, as such a prospect would be
   unacceptable to most of its members and the public. Ma Ying-Jeou,
   current chairman of the KMT and frontrunner for the 2008 presidential
   election, has set out democracy, economic development to a level near
   that of the ROC, and equitable wealth distribution as the conditions
   that the mainland must fulfill in order for reunification to occur. The
   DPP, the largest Pan-Green party, also supports the status quo because
   the risk of provoking the PRC is unacceptable to its members. However,
   President Chen Shui-Bian, of the DPP, has stated that no matter what,
   any said decision should be decided through a public referendum of the
   people of the ROC. Both parties' current foreign policy positions
   support actively advocating ROC participation in international
   organizations, but the KMT accepts the " One-China" principle and the
   DPP encourages economic ties with countries other than the PRC for
   security reasons.

   For its part, the PRC appears to find the retention of the name
   "Republic of China" far more acceptable than the declaration of an
   independent Taiwan. It has stated that any effort on Taiwan to formally
   abolish the ROC and replace it with an explicitly Taiwanese state would
   result in a strong and possibly military reaction. America's current
   position is that the Taiwan issue must be resolved peacefully and the
   US condemns unilateral action by either side; either an unprovoked
   invasion by the PRC or a formal declaration of independence by Taiwan.

   In accordance with the One-China policy and the PRC's view that the ROC
   government is illegitimate, the PRC requires all states with which it
   has diplomatic relations to give no recognition to the ROC. As a
   result, there are only 24 states that have diplomatic relations with
   the latter. However, many countries have representative offices in
   Taiwan. For instance, the United States maintains unofficial relations
   with the ROC through the instrumentality of the American Institute in
   Taiwan. Reciprocally, the ROC maintains similar representative offices
   in many countries, which are referred to as " Taipei Economic and
   Cultural Representative Offices" (TECRO), with branch offices called "
   Taipei Economic and Cultural Offices" (TECO). Both TECRO and TECO are
   unofficial commercial entities of the ROC in charge of maintaining
   bilateral relations, providing consular services, and serving the
   interests of the ROC in other countries in some ways that are similar
   to diplomatic offices.

   Also in accordance with the One-China policy, the PRC only participates
   in international organizations where the ROC is not recognized as a
   state. In 1945, the ROC as representative of China was one of the
   founding states of the United Nations; however, in 1971, with the
   passage of United Nations General Assembly Resolution 2758, it was
   replaced by the PRC. Each year since 1992, the ROC has petitioned the
   UN for entry but has so far been unsuccessful because most member
   states, including the United States, do not wish to discuss the issue
   of the ROC's political status for fears of souring diplomatic ties with
   the PRC. However, both the US and Japan publicly support the ROC's bid
   for membership in the World Health Organization as an observer.
   Similarly, the ROC uses the name Chinese Taipei in international events
   such as the Olympic Games, when PRC is also a party. The ROC is also
   typically barred from using its national anthem and national flag in
   international events due to PRC pressure, and ROC spectators attending
   events such as the Olympics are barred from bringing ROC national flags
   into Olympic venues. On the other hand, the ROC is able to participate
   as "China" in organizations that the PRC does not participate in, such
   as the World Organization of the Scout Movement.

   The relationship with the PRC and the related issues of Taiwan
   independence and Chinese reunification continue to dominate ROC
   politics. For any particular resolution public favour shifts greatly
   with small changes in wording, illustrating the complexity of public
   opinion on the topic.

History

1911-1927

   Yuan Shikai (left) and Sun Yat-sen (right) with two different flags
   representing the early Republic.
   Enlarge
   Yuan Shikai (left) and Sun Yat-sen (right) with two different flags
   representing the early Republic.

   In 1911, after over two thousand years of imperial rule, China
   overthrew its dynastic system in favour of a republic. The Qing Dynasty
   was weak, China having just experienced a century of instability,
   suffering from both internal rebellion and foreign domination. Taiwan
   was not part of China in this era, having been ceded to Japan in 1895.
   The Neo-Confucian principles that had previously sustained the dynastic
   system were now called into question with a loss of cultural
   self-confidence that resulted in about 40 million Chinese consumers of
   opium by 1900. By the time of its defeat by an expeditionary force of
   all major powers in 1900 during the suppression of the Boxer Rebellion,
   the Qing Dynasty was already in its last throes, with only the lack of
   an alternative regime in sight prolonging its existence until 1912.

   The establishment of Republican China developed out of the Wuchang
   Uprising against the Qing on October 10, 1911. The Republic of China
   was established on January 1, 1912, with Dr. Sun Yat-sen as the
   provisional president. As part of the agreement to have the last
   emperor Puyi abdicate, Yuan Shikai was officially elected president in
   1913. However, Yuan dissolved the ruling KMT, ignored the provisional
   Constitution in asserting presidential power, and ultimately declared
   himself emperor of China in 1915.

   Yuan's supporters deserted him, and many provinces declared
   independence and became warlord states. Yuan Shikai died of natural
   causes in 1916. This thrust China into a decade of warlordism. Sun
   Yat-sen, forced into exile, returned to Guangdong province with the
   help of southern warlords in 1917 and 1920, and set up successive rival
   governments. Sun re-established the KMT in October, 1919.

   The central power in Beijing struggled to hold on to power. An open and
   wide-ranging debate evolved regarding how China should confront the
   West. After the Treaty of Versailles, on May 4, a student protest led
   to a nationwide uprising and gave the movement its name.

   Chinese anarchism, specifically anarchist communism, had been the one
   of the most prominent forms of revolutionary socialism even before the
   Wuchang Uprising. Following the Russian Revolution of 1917, the
   influence of Marxism spread and became more popular. Li Dazhao and Chen
   Duxiu led the Marxist- Leninist movement in the beginning. The
   Communist Party of China was founded in July, 1921.

1927-1949

   Chiang Kai-shek, who assumed the leadership of the Kuomintang (KMT)
   after the death of Sun Yat-sen in 1925. He led the Republic of China
   from 1928 to 1975.
   Enlarge
   Chiang Kai-shek, who assumed the leadership of the Kuomintang (KMT)
   after the death of Sun Yat-sen in 1925. He led the Republic of China
   from 1928 to 1975.

   After Sun's untimely death in March 1925, Chiang Kai-shek became the
   leader of the KMT. Chiang had led the successful Northern Expedition
   which, with the help of the Soviet Union, defeated the warlords and
   nominally united China under the KMT. Soviet advisors had provided
   training in advance propaganda, popular agitation, and Russian arms.
   However, Chiang soon dismissed his Soviet advisors, and purged
   communists and leftists from the KMT, leading to the Chinese Civil War.
   The Communists were pushed into the interior as Chiang Kai-shek sought
   to destroy them. Chiang consolidated his rule, establishing a
   Nationalist Government in Nanjing in 1928. Efforts were made to
   establish a modern civil society, by creating the Academia Sinica, the
   Bank of China, and other agencies.

   Stability was interrupted by the Japanese invasion of Manchuria in
   1931, with hostilities continuing through the Second Sino-Japanese War,
   a component of World War II, from 1937 to 1945. In 1945, Japan
   surrendered and the Republic of China became one of the founding
   members of the United Nations.

   The Chinese civil war between the Communists and the Nationalists
   resumed and intensified. Despite numerical superiority and American
   aid, the Nationalists succumbed to the Communists in 1949 due to
   tactical mistakes and spiraling inflation.

1945 to date

   After the defeat of Japan during World War II, Taiwan was surrendered
   to the Allies and occupied by the ROC government on behalf of the
   United States. The post-war San Francisco Peace Treaty confirms that
   the United States was/is the "principal occupying power." It was
   governed under a corrupt military administration, which led to
   widespread unrest and increasing tensions between Taiwanese and
   mainlanders. The arrest of a cigarette vendor and the shooting of a
   bystander on February 28, 1947 triggered island-wide unrest, which was
   then suppressed with military force in what is now called the 228
   Incident. Mainstream estimates of casualties range from 10,000 to
   30,000, mainly Taiwanese elites. The administration declared martial
   law in 1948.

   After the defeat of the KMT in 1949, Chiang Kai-shek evacuated the
   government of the Republic of China to Taiwan and declared Taipei the
   provisional capital of China. Accompanying his retreat were some two
   million refugees from mainland China, adding to the earlier population
   of approximately six million.
   The Chiang Kai-shek Memorial Hall in Taipei City, Republic of China, in
   remembrance of the late President Chiang Kai-shek.
   Enlarge
   The Chiang Kai-shek Memorial Hall in Taipei City, Republic of China, in
   remembrance of the late President Chiang Kai-shek.

   Initially, the United States abandoned the KMT and expected that Taiwan
   would fall to the Communists. However, in 1950 the conflict between
   North Korea and South Korea, which had been ongoing since the Japanese
   withdrawal in 1945, escalated into full-blown war, and in the context
   of the Cold War, US President Harry S. Truman intervened again and
   dispatched the 7th Fleet into the Taiwan Straits to "neutralize" the
   Straits. In the San Francisco Peace Treaty, which came into force on
   April 28, 1952, and the Treaty of Taipei, concluded hours before that
   date, Japan formally renounced all right, claim and title to Formosa
   (Taiwan) and the Pescadores (Peng-hu), and renounced all treaties
   signed with China before 1942. Both treaties remained silent about who
   would take control of the island, in part to avoid taking sides in the
   Chinese Civil War. Advocates of Taiwan independence have used this
   omission to call into question any legal claims on Taiwan, arguing that
   the future of Taiwan should be decided by self-determination. To date,
   however, the United Nations has refused to accept Taiwan's application
   to join the United Nations for the fourteenth year in a row.

   During the 1960s and 1970s, the ROC began to develop into a prosperous,
   industrialized developed country with a strong and dynamic economy,
   becoming one of the East Asian Tigers while maintaining the
   authoritarian, single-party government. Because of the Cold War, most
   Western nations and the United Nations regarded the ROC as the sole
   legitimate government of China (while being merely the de-facto
   government of Taiwan) until the 1970s, when most nations began
   switching recognition to the PRC.

Government

Republican China

   The first national government of the Chinese Republic was established
   on January 1, 1912, in Nanjing, with Sun Yat-sen as the provisional
   president. Provincial delegates were sent to confirm the authority of
   the national government, and they later also formed the first
   parliament. The power of this national government was both limited and
   short-lived, with generals controlling both central and northern
   provinces of China. The limited acts passed by this government included
   the formal abdication of the Qing dynasty and some economic
   initiatives.

   Shortly after the rise of Yuan Shikai, the parliament's authority
   became nominal; violations of the Constitution by Yuan were met with
   half-hearted motions of censure, and Kuomintang members of the
   parliament that gave up their membership in the KMT were offered 1,000
   pounds. Yuan maintained power locally by sending military generals to
   be provincial governors or by obtaining the allegiance of those already
   in power. Foreign powers came to recognize Yuan's power as well: when
   Japan came to China with 21 demands, it was Yuan who submitted to them,
   on May 25, 1915.

   When Yuan died, the parliament of 1913 was reconvened to give
   legitimacy to a new government. However, the real power of the time
   passed to military leaders, forming the warlord period. The impotent
   government still had its use; when World War I began, several Western
   powers and Japan wanted China to declare war on Germany, in order to
   liquidate German holdings.

Present

   The Presidential Building in Taipei has housed the Office of the
   President of the Republic of China since 1950.
   Enlarge
   The Presidential Building in Taipei has housed the Office of the
   President of the Republic of China since 1950.

   The head of state is the President, who is elected by popular vote for
   a four-year term on the same ticket as the Vice-President. The
   President has authority over the five administrative branches (Yuan):
   the Control, Examination, Executive, Judicial, and Legislative Yuans.
   The President appoints the members of the Executive Yuan as his
   cabinet, including a Premier, who is officially the President of the
   Executive Yuan; members are responsible for policy and administration.

   The main legislative body is the unicameral Legislative Yuan with two
   hundred and twenty-five seats. One hundred and sixty-eight are elected
   by popular vote; forty-one are elected based on the proportion of
   nationwide votes received by participating political parties. Eight are
   elected from overseas Chinese constituencies and eight are for the
   aboriginal populations based on the same principle. Members serve
   three-year terms. Originally the unicameral National Assembly, as a
   standing constitutional convention and electoral college, held some
   parliamentary functions, but the National Assembly was abolished in
   2005 with the power of constitutional amendments handed over to the
   Legislative Yuan and all eligible voters of the Republic via referenda.

   The Judicial Yuan is Taiwan's highest judiciary. It interprets the
   constitution and other laws and decrees, judges administrative suits,
   and disciplines public functionaries. The President and Vice-President
   of the Judicial Yuan and fifteen Justices form the Council of Grand
   Justices. They are nominated and appointed by the President of the
   Republic, with the consent of the Legislative Yuan. The highest court,
   the Supreme Court, consists of a number of civil and criminal
   divisions, each of which is formed by a presiding Judge and four
   Associate Judges, all appointed for life. In 1993, a separate
   constitutional court was established to resolve constitutional
   disputes, regulate the activities of political parties and accelerate
   the democratization process. There is no trial by jury but the right to
   a fair public trial is protected by law and respected in practice; many
   cases are presided over by multiple judges.

   The ROC's political system does not fit traditional models. The Premier
   is selected by the President without the need for approval from the
   Legislature, but the Legislature can pass laws without regard for the
   President, as neither he nor the Premier wields veto power. Thus, there
   is little incentive for the President and the Legislature to negotiate
   on legislation if they are of opposing parties. In fact, since the
   election of the pan-Green's Chen Shui-bian as President in 2000 and the
   continued control of the Legislative Yuan by the pan-Blue majority,
   legislation has repeatedly stalled, as the two sides have been
   deadlocked. There is another curiosity of the ROC system; because the
   ROC was previously dominated by strongman single party politics, real
   power in the system shifted from one position to another, depending on
   what position was currently occupied by the leader of the state (Chiang
   Kai-shek and later his son, Chiang Ching-kuo, and now Chen Shuibian).
   This legacy has resulted in executive powers currently being
   concentrated in the office of the President rather than the Premier.

   The term ruling party was previously applied to the KMT, as it was the
   authoritarian party that controlled all aspects of government (ruling
   party may also be applied to the majority party in a parliamentary
   system). The Soviets, who had trained Chiang and the KMT and the
   Communists, left a lasting mark on the practices of the KMT, and under
   a Leninist style one party state, there was little difference between
   the ROC government, the KMT, and the army. Today, however, the term
   "ruling party" has a specific, peculiar use in Taiwan and is used to
   describe the party holding the Presidency. This is not entirely
   accurate since Taiwan does not have a parliamentary system, where the
   executive branch is occupied by the same party or coalition that holds
   a majority in the legislature. This term is currently used because the
   Premier is appointed by the President, thus executive powers tend to be
   dominated by the party holding the Presidency.

Political divisions

   Map comparing political divisions as drawn by the ROC and PRC.
   Enlarge
   Map comparing political divisions as drawn by the ROC and PRC.

   According to the 1947 Constitution, written before the fall of
   Republican China, the highest level administrative division is the
   province, which includes special administrative regions, regions, and
   centrally-administered municipalities. However, in 1998 the only
   provincial government to remain fully functional under ROC
   jurisdiction, Taiwan Province, was streamlined, with most
   responsibility assumed by the central government and the county-level
   governments (the other existing provincial government, Fuchien, was
   streamlined much earlier). The ROC currently administers two provinces
   and two provincial level cities.
     * Taiwan Province: the main island, except for the two
       municipalities, plus Penghu county ( Pescadores Islands)
          + Sixteen counties
          + Five provincially administrated cities
     * Fukien Province: several islands off the Chinese mainland
          + Kinmen County: Kinmen, Lesser Kinmen and Wuchiu
          + part of Lienchiang County, namely Matsu, Dongyin, Siyin and
            Jyuguang
     * Two Central Municipalities
          + Taipei City
          + Kaohsiung City

   The Republic of China also controls the Dongsha Islands (Dong-Sha) and
   Taiping Island, which are part of the disputed South China Sea Islands.
   They were placed under Kaohsiung City after the retreat to Taiwan.

   Taichung is currently under consideration for elevation to central
   municipality status. Also, Taipei County and Kaohsiung County are
   considering mergers with their respective cities.

   Although the ROC has not constitutionally renounced sovereignty over
   Mainland China and Outer Mongolia, President Lee Teng-hui stated in
   1991 that his government does not dispute the fact that the Communist
   Party rules Mainland China. The DPP government under Chen Shui-bian has
   removed Outer Mongolia from the ROC's official maps and established a
   representative office in Mongolia's capital, Ulan Bator. Offices
   established to create the appearance of domestic governance of those
   regions, such as the Mongolian and Tibetan Affairs Commission, lie
   dormant.

   ROC official boundaries continue to show thirty-five provinces,
   fourteen municipalities, one special administrative region and two
   regions, instead of the twenty-three provinces, four municipalities,
   two special administrative regions and five autonomous regions shown on
   PRC maps. The ruling DPP government has dropped regulations that
   require ROC map makers to depict the official boundaries.

Politics

1911-1949

   The original founding of the Republic centered on the Three Principles
   of the People (san min zhuyi): Nationalism, Democracy, and People's
   Livelihood (also translated "Socialism.") "Nationalism" meant standing
   up to Japanese and European interference, "democracy" represented
   elected rule modeled after Japan's parliament, and the "people's
   livelihood" meant government regulation of the means of production.
   Another subordinate principle was "Five Races Under One Union" (五族共和),
   which emphasized the harmony of the five major ethnic groups in China (
   Han, Manchus, Mongols, Tibetans, and Uighurs), represented by the
   colored stripes of the original Five-Colored Flag of the Republic. The
   Five Races Under One Union principle and the five-colored flag were
   abandoned in 1927.

   The Three Principles were not realized. Republican China was riven by
   warlordism, foreign invasion, and civil war. There were elected
   legislators, but Republican China was largely a one-party dictatorship,
   with some minor parties, such as the Chinese Youth Party, the National
   Socialist Party, and the Rural Construction Party. Within the KMT,
   there was suppression of dissent by the Communists. The central
   government was weak and unable to implement land reform or wealth
   redistribution. Politics of this era consisted primarily of political
   and military struggle between the KMT and the CPC between periods of
   military resistance against Japanese invasion.

1949-2005

   The constitution of the Republic of China was drafted before the fall
   of mainland China to the Communists. It was created for the purpose of
   forming a coalition government between the Nationalists and the
   Communists for ruling all of China, including Taiwan. However, the CPC
   boycotted the National Assembly, and the Taiwanese representatives were
   not elected. The constitution went into effect December 25, 1947.

   Taiwan remained under martial law from 1948 until 1987 and much of the
   constitution was not in effect. Political reforms beginning in the late
   1970s and continuing through the early 1990s liberalized the ROC from
   an authoritarian one-party state into a multiparty democracy. Since the
   lifting of martial law, the Republic of China has democratized and
   reformed, removing legacy components that were originally meant for the
   governing of mainland China. Many legacy components that remain are
   nonfunctional. This process of amendment continues. In 2000, the KMT's
   monopoly on power ended after the Democratic Progressive Party (DPP)
   won the ROC presidency. In May 2005, a new National Assembly was
   elected to reduce the number of parliamentary seats and implement
   several constitutional reforms. These reforms have been passed; the
   National Assembly has essentially voted to abolish itself and transfer
   the power of constitutional reform to the popular ballot.

Present

Major camps

   The political scene in the ROC is divided into two camps, with the
   pro-unification and centre-right KMT, People First Party (PFP), and New
   Party forming the Pan-Blue Coalition, and the pro-independence and
   centre-left Democratic Progressive Party (DPP) and centrist Taiwan
   Solidarity Union (TSU) forming the Pan-Green Coalition.

   The Pan-Green camp tends to favour emphasizing Taiwan as being distinct
   from China. Many Pan-Green supporters seek formal Taiwanese
   independence and to drop the title of the Republic of China. Some
   members of the coalition, such as current President Chen Shui-bian,
   have moderated their views and claim that it is unnecessary to proclaim
   independence because Taiwan is already "an independent, sovereign
   country" and the Republic of China is the same as Taiwan. Some members
   claim that the ROC is nonexistent and call for the establishment of an
   independent Republic of Taiwan. Supporters of this idea have gone as
   far as issuing self-made "passports" for their republic. Attempts to
   use these "passports" however have been stopped by officials at Chiang
   Kai-shek International Airport.

   Some Pan-Blue members, especially former leaders from the older
   generation, support the concept of the Republic of China, which remains
   an important symbol of their links with China. During his visit to
   mainland China in April 2005, former KMT Party Chairman Lien Chan
   reiterated his party's belief in the "One China" policy, which states
   that there is only one China controlled by two governments and that
   Taiwan is a part of China. PFP Party Chair James Soong expressed the
   same sentiments during his visit in May. The more mainstream Pan-Blue
   position is to lift investment restrictions and pursue negotiations
   with the PRC to immediately open direct transportation links. Regarding
   independence, the mainstream Pan-Blue position is to maintain the
   status quo, while being open to negotiations for unification.

Current political issues

   The dominant political issue in the ROC is its relationship with the
   PRC. Many people in the ROC desire the opening of direct transportation
   links with the Mainland, including direct flights. This would aid many
   ROC businesses that have opened factories or branches on the Mainland.
   The current DPP administration fears that such links will lead to
   tighter economic and political integration with the PRC, and in the
   2006 Lunar New Year Speech, President Chen Shui-bian called for managed
   opening of links.

   Other major political issues include the passage of an arms procurement
   bill that the United States authorized in 2001, and the establishment
   of a National Communications Commission to take over from the
   Government Information Office, whose advertising budget exercised great
   control over ROC media.

   Banking reform, including consumer finance (limiting rates on credit
   cards) and bank mergers, is a major issue. The ROC's financial sector
   is unwieldy, with over forty-eight banks, none with a market share over
   10%. The government controls 50% to 60% of Taiwan's banking assets. The
   ultimate goal is to create large financial institutions that can
   compete internationally.

   The politicians and their parties have themselves become major
   political issues. Corruption among some DPP administration officials
   has been exposed. The KMT was once the richest political party in the
   world and KMT assets continue to be an issue. The merger of the KMT and
   PFP was thought to be certain, but a string of defections from the PFP
   to the KMT have increased tensions within the Pan-Blue camp. There has
   been talk from both camps of amending the constitution to finally
   resolve whether the Republic of China should have a presidential system
   or a parliamentary system.

Foreign relations

1911-1949

   Generalissimo Chiang Kai-shek, Franklin D. Roosevelt, and Winston
   Churchill met at the Cairo Conference in 1943 during World War II.
   Enlarge
   Generalissimo Chiang Kai-shek, Franklin D. Roosevelt, and Winston
   Churchill met at the Cairo Conference in 1943 during World War II.

   The foreign relations of Republican China were complicated by a lack of
   internal unity. Competing centers of power all claimed legitimacy.
   There was also foreign interference and invasion. Japan, the United
   Kingdom, France, Italy, Germany, Russia, and other major powers all
   made claims to various parts of China during this time. During the
   early years of the Republic, almost all foreign powers recognized the
   "warlord" government controlled by Yuan Shi-kai in Beijing as the
   legitimate government of China. In return for recognition, the Republic
   had to give up control of Outer Mongolia and Tibet. China would remain
   suzerain, but Russia would be allowed to influence Mongolia while the
   British would be allowed in Tibet. It was also this government that
   sent representatives to sign the Treaty of Versailles over protests by
   students in the May Fourth Movement.

   After the defeat of the Beiyang government in Beijing by the Kuomintang
   (Nationalists) and the purging of Communists from the party, the 1928
   Nanjing Nationalist Government received widespread diplomatic
   recognition. This recognition lasted throughout the Chinese Civil War
   and World War II (though Japan established a rival puppet government
   during the invasion that received some recognition from the Axis).
   Having fought on the side of the Allied Powers during World War II, the
   Republic of China became one of the founding members of the UN and held
   one of the five permanent seats on the UN Security Council.

   Despite Chiang's failures as an administrator and military strategist,
   he is today recognized for several diplomatic successes. In the 1930s,
   he was able to moderate Japanese advances by negotiating aid from Nazi
   Germany. Immediately prior to World War II, he was able to secure aid
   from his former patrons, the Soviets. During World War II and
   immediately afterwards, he was able to obtain large amounts of support
   from the US, including lend-lease supplies. Huge infusions of military
   assistance, equipment, advice, and cash continued even after he
   evacuated the KMT to Taiwan.

1949-present

   After the KMT retreat to Taiwan, most countries, notably the countries
   in the Western bloc, continued to maintain relations with the ROC
   government. Due to diplomatic pressure, recognition gradually eroded
   and many countries switched recognition to the People's Republic of
   China in the 1970s. There are now only twenty-four countries that
   maintain official diplomatic relations with the Republic of China.

   The People's Republic of China refuses to have diplomatic relations
   with any nation that recognizes the Republic of China, and requires all
   nations that it has diplomatic relations with to make a statement
   recognizing its claims to Taiwan. In practice most major nations
   maintain unofficial relations with the ROC and the statement required
   by the PRC is ambiguously worded. The ROC maintains unofficial
   relations via Taipei Economic and Cultural Representative Offices or
   "Taipei Representative Offices" that take on most of the functions of
   an official embassy, such as issuing visas. Similarly, many nations
   maintain corresponding trade and economic offices in the ROC, such as
   the American Institute in Taiwan, which is the de facto embassy of the
   United States in the ROC.

   The ROC was a founding member of the United Nations and held China's
   seat on the Security Council until 1971, when it was expelled by
   General Assembly Resolution 2758 and replaced in all UN organs with the
   PRC. Multiple attempts by the ROC to rejoin the UN have not made it
   past committee. (See China and the United Nations)

   Besides the dispute with the PRC over the mainland, the ROC also has a
   controversial relationship with Mongolia. Until 1945, the ROC claimed
   jurisdiction over Greater Mongolia, but under Soviet pressure, it
   recognized Mongolian independence. Shortly thereafter, it repudiated
   this recognition and continued to claim jurisdiction over Mongolia
   until recently. Since the late 1990s, the relationship with Mongolia
   has become a controversial topic. Any move to renounce sovereignty over
   Mongolia is controversial because the PRC claims that it is a prelude
   to Taiwan independence.

   The ROC is required to use the name Chinese Taipei in many
   circumstances, due to the One-China Policy. Among organizations that
   have this requirement are international sports federations, including
   the International Olympic Committee.

Military

1911-1949

   National Revolutionary Army troops standing at attention during an
   inspection by German instructors during Second Sino-Japanese War.
   Enlarge
   National Revolutionary Army troops standing at attention during an
   inspection by German instructors during Second Sino-Japanese War.

   Several armies were associated with this era, including those of the
   various warlords, the KMT, and the CPC. There were two armies regarded
   as the "national army": the Beiyang Army of the Warlord government and
   later the National Revolutionary Army of the Nationalist Government.

   The founding of the Republic was made possible by mutiny within the
   Qing New Army. When Yuan Shikai took over as president, he was already
   commander of the Beiyang Army, which controlled North China. However,
   with Yuan's death in 1916, numerous factions within the Beiyang Army
   broke loose, and the leading generals of the Beiyang Army became
   warlords, ruling huge fiefdoms in the following decade. Regulars in
   these warlord armies often did not wear uniforms and the distinction
   between bandit and soldier was blurred.

   With the help of the Comintern, Sun Yat-sen established the National
   Revolutionary Army in 1925 in Guangdong with a goal of reunifying China
   under the Kuomintang. To this end, it initially fought against the
   warlords who had fractured China, successfully unifying China, and
   later against the Communist Red Army. A minor Sino-Soviet conflict in
   1929 was fought over the administration of the Manchurian Chinese
   Eastern Railway. The National Revolutionary Army also fought against
   Japanese invasion during the Second Sino-Japanese War (1931 and
   1937-1945), which became a part of the larger World War II. Leadership
   of the military during this time empowered political leadership.
   Following the principles of Leninism the distinctions among party,
   state, and army were blurred.

   When the Communist People's Liberation Army won the Chinese Civil War,
   much of the National Revolutionary Army retreated to Taiwan along with
   the government. It was later reformed into the Republic of China Army.
   Units which surrendered and remained in China were either disbanded or
   incorporated into the PLA.

Present

   The ROC maintains a large military, mainly as defense against the
   constant threat of invasion by the PRC. From 1949 to the 1970s the
   military's primary mission was to "retake the mainland." As this
   mission has shifted to defense, the ROC military has begun to shift
   emphasis from the traditionally dominant army to the air force and
   navy. Control of the armed forces has also passed into the hands of the
   civilian government. As the ROC military shares historical roots with
   the KMT, the older generation of high ranking officers tends to have
   Pan-Blue sympathies. However, many have retired and there are many more
   non-Mainlanders enlisting in the armed forces in the younger
   generations, so the political leanings of the military have moved
   closer to the public norm in Taiwan.
   ROC Military Police special forces disembarking from a UH-1H helicopter
   from the ROC Army 602nd Air Cavalry Brigade during a counter-terrorism
   exercise (ROC Ministry of National Defense).
   Enlarge
   ROC Military Police special forces disembarking from a UH-1H helicopter
   from the ROC Army 602nd Air Cavalry Brigade during a counter-terrorism
   exercise ( ROC Ministry of National Defense).

   The ROC's armed forces number approximately 300,000, with nominal
   reserves totaling 3,870,000. The ROC began a force reduction program to
   scale down its military from a level of 430,000 in the 1990s which is
   drawing to a close by 2005. Conscription remains universal for
   qualified males reaching age eighteen, but as a part of the reduction
   effort many are given the opportunity to fulfill their draft
   requirement through alternative service and are redirected to
   government agencies or defense related industries. Current plans call
   for a transition to a predominantly professional army over the next
   decade. Conscription periods will decrease by two months each year,
   with a final result of three months.

   The armed forces' primary concern at this time is the possibility of an
   attack by the PRC, consisting of a naval blockade, airborne assault
   and/or missile bombardment. Four upgraded Kidd-class destroyers were
   recently purchased from the United States, significantly upgrading
   Taiwan's air defense and submarine hunting abilities. The Ministry of
   National Defense planned to purchase diesel-powered submarines and
   Patriot anti-missile batteries from the United States, but its budget
   has been stalled repeatedly by the opposition- Pan-Blue Coalition
   controlled legislature. The defense package has been stalled since 2001
   and there is now debate about the relevance of the submarines and
   whether different hardware should be purchased. A significant amount of
   military hardware has been bought from the United States, and continues
   to be legally guaranteed today by the Taiwan Relations Act. In the
   past, the ROC has also purchased hardware from France and the
   Netherlands.

   The first line of defense against invasion by the PRC is the ROC's own
   armed forces. Current ROC military doctrine is to hold out against an
   invasion or blockade until the U.S. military responds. A defense pact
   between the U.S. and Japan signed in 2005 implies that Japan would be
   involved in any response. Other U.S. allies, such as Australia, could
   theoretically be involved but this is unlikely in practice.

Economy

1912-1949

   Bonds that Sun Yat-sen used to raise money for revolutionary cause.
   (The Republic of China was also once known as the Chunghwa Republic.)
   Enlarge
   Bonds that Sun Yat-sen used to raise money for revolutionary cause.
   (The Republic of China was also once known as the Chunghwa Republic.)

   During the first half of the twentieth century the economy of the
   Republic of China was essentially capitalist, with much foreign
   interference. Progress was impeded by constant war and internal and
   external strife.

   The weak national government made some attempts to promote economic
   activity, such as by establishing the Industrial Bank of China. There
   was little government control of the economy however, other than
   causing runaway inflation by overprinting money to finance wars against
   the Japanese and the Communists. Foreign debts also made the national
   government susceptible to foreign influence. The Nationalists, like
   Yuan Shi-kai before them, were propped up through massive economic
   loans by the United States.

   China at the time was largely agrarian, with most of the land, and thus
   the wealth, concentrated in a wide pyramid structure. Much of the land
   was owned by a few very wealthy landowners; the general population were
   tenant farmers who did not own land. The founders of both the Republic
   of China and the Communist Party had aimed to overturn this inequality.
   The Henan famine (1943-1944) aided the collapse of the Republican
   government. Labor unions had been crushed in the purge of the
   Communists from the Kuomintang, leading to more inequality. Many of the
   wealthiest landowners and business leaders were also ministers and
   officials of the state and were often corrupt, preventing effective
   measures from being implemented.

The Taiwan Miracle

   Taiwan's quick industrialization and rapid growth during the latter
   half of the twentieth century, has been called the " Taiwan Miracle"
   (台灣奇蹟) or "Taiwan Economic Miracle". As it has developed alongside
   Singapore, South Korea and Hong Kong, the ROC is known as one of the "
   East Asian Tigers".

   Japanese rule prior to and during World War II brought forth changes in
   the public and private sectors of the economy, most notably in the area
   of public works, which enabled rapid communications and facilitated
   transport throughout much of the island. The Japanese also improved
   public education and made the system compulsory for all Taiwanese
   citizens during this time.

   When the KMT government fled to Taiwan it brought the entire gold
   reserve and the foreign currency reserve of mainland China to the
   island which stabilized prices and reduced hyperinflation. More
   importantly, as part of its retreat to Taiwan, KMT brought with them
   the intellectual and business elites from the maindland. This
   unprecedented influx of monetary and human capital laid the foundation
   for Taiwan's later dramatic economic development. The KMT government
   instituted many laws and land reforms that it had never effectively
   enacted on mainland China. The government also implemented a policy of
   import-substitution, attempting to produce imported goods domestically.
   Much of this was made possible through US economic aid, subsidizing the
   higher cost of domestic production. Native Taiwanese were largely
   excluded from the mainlander dominated government, so many went into
   the business world.

   In 1962, Taiwan had a per capita gross national product (GNP) of $170,
   placing the island's economy squarely between Zaire and Congo. But, by
   2005 Taiwan's per capita GNP, adjusted for purchasing power parity
   (PPP), had soared to $27,600, contributing to a Human Development Index
   similar to that of European countries such as Greece.

   According to economist Paul Krugman, 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 both
   lengthened and many more people, such as women, entered the work force.

   Dwight Perkins and others cite certain methodological flaws in
   Krugman's (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.

Present

   Taipei 101, the current world's tallest building (509m) since its
   completion in 2004.
   Enlarge
   Taipei 101, the current world's tallest building (509m) since its
   completion in 2004.

   Today the ROC has a dynamic capitalist, export-driven economy with
   gradually decreasing state involvement in investment and foreign trade.
   In keeping with this trend, some large government-owned banks and
   industrial firms are being privatized. Real growth in GDP has averaged
   about eight percent during the past three decades. Exports have
   provided the primary impetus for industrialization. The trade surplus
   is substantial, and foreign reserves are the world's third largest. The
   Republic of China's current GDP per capita (PPP) is equal to the
   average of EU Countries.

   The Republic of China (Taiwan) has its own currency: the New Taiwan
   Dollar.

   Agriculture constitutes only two percent of the GDP, down from 35
   percent in 1952. Traditional labor-intensive industries are steadily
   being moved offshore and with more capital and technology-intensive
   industries replacing them. The Republic of China (Taiwan) has become a
   major foreign investor in the People's Republic of China, Thailand,
   Indonesia, the Philippines, Malaysia, and Vietnam. It is estimated that
   some 50,000 Taiwanese businesses and 1,000,000 businesspeople and their
   dependents are established in the People's Republic of China.

   Because of its conservative financial approach and its entrepreneurial
   strengths, the ROC (Taiwan) suffered little compared with many of its
   neighbors from the Asian financial crisis in 1998–1999. Unlike its
   neighbors South Korea and Japan, the Taiwanese economy is dominated by
   small and medium sized businesses, rather than the large business
   groups. The global economic downturn, however, combined with poor
   policy coordination by the new administration and increasing bad debts
   in the banking system, pushed Taiwan into recession in 2001, the first
   whole year of negative growth since 1947. Due to the relocation of many
   manufacturing and labor intensive industries to the People's Republic
   of China, unemployment also reached a level not seen since the 1970s
   oil crisis. This became a major issue in the 2004 presidential
   election. Growth averaged more than 4% in the 2002-2006 period and the
   unemployment rate fell below 4%.

   Because the People's Republic of China objects to having other
   countries maintain diplomatic or official relations with the Republic
   of China, the ROC often joins international organizations under a
   politically neutral name. The Republic of China (Taiwan) is a member of
   governmental trade organizations such as the World Trade Organization
   under the name Separate Customs Territory of Taiwan, Penghu, Kinmen and
   Matsu (台灣、澎湖、金門及馬祖個別關稅領域) and APEC under the name Chinese Taipei.

Education

   The ROC has a twenty-two year comprehensive educational system
   influenced by the Japanese educational system. The system has been
   successful in that pupils in the ROC boast some of the highest test
   scores in the world, especially in mathematics and science; however, it
   has also been criticized for placing excessive pressure on students and
   eschewing creativity in favour of rote memorization. Recent educational
   reforms intended to address these criticisms are a topic of intense
   debate.

   The suicide rate for students in the ROC is high and comparable to the
   rates in Japan. This is often attributed to the tremendous academic
   pressures faced by students.

   The literacy rate in 2003 was 96.1%.

   Yuan T. Lee was the first Taiwanese-born Nobel Prize laureate who won
   the Nobel Prize in Chemistry; he received the award in 1986 for
   "contributions to the dynamics of chemical elementary processes."

Demographics

   The population of areas under control of the Republic of China was
   estimated in July 2006 at 23,036,087 spread across a total land area of
   35,980 km² making it the twelfth most densely populated country in the
   world with a population density of 886 people per km². 98% of Taiwan's
   population is made up of Chinese while 2% are aborigines. An estimated
   93% of the population worship a mixture of Buddhism, Taoism, and
   Confucianism while a minority 4.5% worship Christianity. Taiwan is
   suffering a decline in birth rates with a population growth of just
   0.61% for the year 2006. The official national language is Mandarin
   though the majority speak Taiwanese (Minnanese; a Fujian dialect) and
   Hakka. Japanese speakers are becoming rare as the elderly generation
   who lived under Japanese rule are dying out. Aboriginal languages are
   becoming extinct as the aborigines have become sinicized and the ROC
   government has acted too late to preserve the Formosan languages.

Public health

   Healthcare in the ROC is managed by the Bureau of National Health
   Insurance (BNHI).

   The current program was implemented in 1995 and is considered a social
   insurance. The government health insurance program maintains compulsory
   insurance for employed, impoverished, un-employed citizens and persons
   of natural disasters with fees that correlate to the individual and/or
   family income; it also maintains protection for non-citizens working in
   Taiwan. The 2001 premium for the district population was US$18.88 per
   person per month. A standardized method of calculation applies to all
   persons and can optionally be paid by an employer or by individual
   contributions.

   BNHI insurance coverage requires co-payment at the time of service for
   most services unless it is a preventative health service, for
   low-income families, veterans, children under three years old, or in
   the case of catastrophic diseases. Low income households maintain 100%
   premium coverage by the BNHI and co-pays are reduced for disabled or
   certain elderly peoples.

   The BNHI performs a self-evaluation measure in their quality of care
   and public opinion. This data can be found on the BNHI website. In its
   inception, only 39% of the people were ‘Satisfied’ with the program,
   and 47% claiming they were ‘Dissatisfied’. In deep contrast, in
   December of 2004 only 13.3% of people were dissatisfied with the
   healthcare system with 76.6% ‘Satisfied’.

   Taiwan has their own Centre for Disease Control, and during the SARS
   outbreak occurring in March of 2003 confirmed 347 cases. During the
   outbreak the CDC and local governments set up monitored stations
   throughout public transportation, recreational sites and other public
   areas. With full containment in July of 2003, there has not been a case
   of SARS reported since.

   BNHI Facility Contract Distribution facilities total 17,259, including:
   16,174 outpatient-only facilities
    5,701 dental clinics
    2,422 Chinese medicine clinics
    1,085 inpatient/outpatient facilities
      437 local community hospitals
       35 Chinese medicine hospitals
       23 academic medical centers

   Basic coverage areas of the insurance include:
     * Inpatient care
     * Ambulatory care
     * Laboratory tests
     * Prescription and over-the-counter drugs
     * Dental services

                                                * Mental Illness
                                                * Traditional Chinese medicine
                                                * Home care
                                                * Preventative services*

   * child check-ups, prenatal care, pap smears, adult check-ups In 2004
   the infant mortality rate was 5.3 with 15 physicians and 63 hospital
   beds per 10,000 people. The life expectancy for males was 73.5 years
   and 79.7 years for females according the World Health Report. Since the
   inception of the BNHI in 1995 the aggregate life expectancy increase is
   1.6 years for males and 2 years for females, possibly a key indicator
   for success in the BNHI program considering the relatively stable life
   expectancy rate prior to the initiative.

   Other health related programs in Taiwan are the Centre for Disease
   Control and the Department of Health.

Calendar

   A calendar that commemorates the first year of the Republic as well as
   the election of Sun Yat-sen as the provisional President.
   Enlarge
   A calendar that commemorates the first year of the Republic as well as
   the election of Sun Yat-sen as the provisional President.

   Following the imperial tradition of using the sovereign's era name and
   year of reign, official ROC documents use the Republic (Chinese: 民國;
   pinyin: míngúo; literally "The Country of the People") system of
   numbering years in which the first year (民國元年) was 1912, the year of
   the founding of the Republic of China. For example, 2006 is the "95th
   year of the Republic" (民國九十五年 or 民國95年). As Chinese era names are
   traditionally two characters long, 民國 (Republic) is employed as an
   abbreviation of 中華民國 (Republic of China).

   Months and days are numbered according to the Gregorian calendar. Based
   on Chinese National Standard CNS 7648: Data Elements and Interchange
   Formats -- Information Interchange -- Representation of Dates and
   Times, (similar to ISO 8601), year numbering may use the A.D. system as
   well as the ROC era. For example, May 3, 2004 may be written 2004-05-03
   or R.O.C.93-05-03.

   The ROC era numbering happens to be the same as the numbering used by
   North Korea because its founder, Kim Il-sung, was born in 1912. The
   years in Japan's Taishō period (July 30, 1912 to December 25, 1926) are
   also coincident with the ROC era.

   The use of the ROC era system extends beyond official documents. When
   used to mark expiration dates on products for export, they can be
   misunderstood as having an expiration date 11 years earlier than
   intended. Misinterpretation is more likely in the cases when the prefix
   (R.O.C. or 民國) is omitted.

   Traditional Chinese holidays such as the Chinese New Year, the Lantern
   Festival, and the Dragon Boat Festival are celebrated regularly.

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