WHAT YOU NEED TO KNOW

HISTORY: Despite Beijing’s claim Taiwan has been part of China since ancient times, permanent Chinese settlement did not begin until the Dutch colonial period in the 17th century. Spain had also operated a colony there for a time, while Portuguese sailors are credited with naming it Formosa, the “beautiful island”. Following the end of World War II, it was handed to the Nationalist Party-run Republic of China under Chiang Kai-shek, who moved his government there in 1949 after the Communist Party swept to power in China. PEOPLE: Taiwan’s population of 23 million includes a range of aboriginal tribespeople, whose ancestors lived on the island for thousands of years before the arrival of Chinese settlers. The earliest arrivals were primarily farmers and fishermen from Fujian who spokes varieties of the Hoklo, or Hokkien, dialect. They were joined by members of the Hakka ethnic group from Fujian and Guangdong province to the south. POLITICS: The Nationalists devastated the native Taiwanese political elite in a 1947 crackdown and imposed a harsh form of martial law in 1949. The first direct presidential election was held in 1996 and the main opposition Democratic Progressive Party gained power in 2000 under president Chen Shui-bian. POLITICAL SYSTEM: Taiwan is a hybrid democracy that mixes elements of European-style parliamentary systems with a presidential system similar to that in the United States. Executive powers are concentrated in the president as head of state, while legislation is passed by the 133-seat legislature known as the Legislative Yuan. ECONOMY: Taiwan began moving from a largely agricultural economy to one based on increasingly high-tech manufacturing in the latter half of the 20th century. Although it remains dominated by small and medium-size industries, it has created global brands including Formosa Plastics, Acer computers, Giant bicycles and electronics maker Foxconn. While it formerly dwarfed the Chinese economy, today Taiwan stands as the world’s 26th largest. RELATIONS WITH CHINA: While Taiwan-China relations have improved enormously since the days of their bitter Cold War rivalry, and especially under the watch of outgoing President Ma Yingjeou, a large majority of Taiwanese reject China’s demand for political unification in favour of maintaining the status-quo of de-facto independence. Taiwan maintains its own constitution, flag and anthem.