Taiwan is formally known as the Republic of China (ROC). The ROC is Asia's first constitutional republic, founded in 1912. When the Chinese Communist Party established the People's Republic of China (PRC) on the Chinese mainland in 1949, the ROC government, led by the Kuomintang (KMT), relocated to Taiwan, where it maintained jurisdiction over Taiwan, Penghu, Kinmen, Matsu, and numerous other islets. The two sides of the Taiwan Strait have since been governed as separate territories and developed separate identities.

    In the realm of political development, Taiwan has grown into a free and vibrant democracy. The government lifted martial law in 1987 and launched a series of political reforms to expand the democratic process. In 1996, the people of Taiwan completed their first direct presidential election. The presidential election of 2000 ended five decades of government under the KMT and peacefully transferred power to the victorious Democratic Progressive Party (DPP). In contrast, the advancement of democracy in China has stagnated, and the PRC remains a one-party Communist dictatorship.

    Democratic progress--combined with an entrepreneurial and highly educated populace, impartial government regulation, and constantly improving infrastructure--has enabled Taiwan to surge ahead and establish itself as a global economic powerhouse. Its competitive and dynamic market economy has brought to all levels of society unprecedented prosperity that will be further enhanced following WTO accession in January 2002. Like Taiwan, China was also admitted to the WTO in December 2001, but Communist Party interference in the economy remains heavy. A statistical comparison of the two sides shows that Taiwan's democratic system has been conducive to economic growth and technological advancement.

    Taiwan announced its commitment to the peaceful resolution of differences with China in 1991. Unfortunately, Beijing has not responded in good faith and has consistently refused to renounce the use of force against Taiwan. Nonetheless, Taipei has proposed that the two sides work jointly on economic and cultural activities, which could serve as a starting point for building mutual trust, confidence, and permanent peace.

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The national flag of the Republic of China
For more information about the ROC national flag, click here.

A Statistical Comparison
TAIWAN Formally known as the Republic of China			CHINA Formally known as the People's Repubic of China
13,969 square miles1		Land area		3,706,566 square miles2
22.42 million1		Population		1.27 billion2
Democracy3		Type of government		Communist Party-led state3
Free (1.5)4		Human rights condition		Not free (6.5)4
US$12,9411		Per capita GNP		US$8402
US$230.1 billion1		Foreign trade		US$509.8 billion2
US$132.9 billion1 (April 2002)		Foreign exchange reserves		US$233.8 billion2 (April 2002)
US$34.33 million1		Foreign debt		US$170.1 billion2
7th / 75 5		Global growth competitiveness		39th / 75 5
5th / 50 6		Investment climate		21st / 50 6
96.6% 7		Mobile phone penetration rate		11.2% 7
5,371 8		US utility patent grants		195 8
1 ROC statistics 2 PRC statistics 3 The World Almanac and Book of Facts 2001 4 Freedom House, Freedom in the World: The Annual Survey of Political Rights & Civil Liberties, 2001-2001 ??on a scale of 1.0 to 7.0, with 1.0 being the freest) 5 World Economic Forum 6 Business Environment Risk Intelligence (BERI), Switzerland 7 International Telecommunication Union 8 U.S. Patent and Trademark Office * All figures are as of 2001, unless otherwise noted.

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