In 1895, military defeat forced China to cede Taiwan to Japan. Taiwan reverted to Chinese control after World War II.

Following the Communist victory on the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government using the 1946 constitution drawn up for all of China.

Over the next five decades, the ruling authorities gradually democratized and incorporated the local population within the governing structure.

In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist to the Democratic Progressive Party.

Throughout this period, the island prospered and became one of East Asia's economic "Tigers."

The dominant political issues continue to be the relationship between Taiwan and China - specifically the question of eventual unification - as well as domestic political and economic reform.

Source: CIA World Fact Book

Population: 22,858,872 (July 2007 est.)

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Age structure: 0-14 years: 17.8% (male 2,117,051/female 1,954,709) 15-64 years: 72% (male 8,306,351/female 8,141,268) 65 years and over: 10.2% (male 1,150,001/female 1,189,492) (2007 est.)

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Median age: total: 35.5 years male: 35 years female: 36 years (2007 est.)

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Population growth rate: 0.304% (2007 est.)

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Birth rate: 8.97 births/1,000 population (2007 est.)

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Death rate: 6.54 deaths/1,000 population (2007 est.)

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Net migration rate: 0.61 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.09 male(s)/female under 15 years: 1.083 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.967 male(s)/female total population: 1.026 male(s)/female (2007 est.)

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Infant mortality rate: total: 5.54 deaths/1,000 live births male: 5.86 deaths/1,000 live births female: 5.19 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 77.56 years male: 74.65 years female: 80.74 years (2007 est.)

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Total fertility rate: 1.12 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: NA

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HIV/AIDS - people living with HIV/AIDS: NA

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HIV/AIDS - deaths: NA

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Nationality: noun: Taiwan (singular and plural) note: example - he or she is from Taiwan; they are from Taiwan adjective: Taiwan

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Ethnic groups: Taiwanese (including Hakka) 84%, mainland Chinese 14%, indigenous 2%

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Religions: mixture of Buddhist and Taoist 93%, Christian 4.5%, other 2.5% Languages: Mandarin Chinese (official), Taiwanese (Min), Hakka dialects

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Literacy: definition: age 15 and over can read and write total population: 96.1% male: NA% female: NA% (2003)

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large, government-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The island runs a trade surplus, and foreign reserves are the world's third largest. Despite restrictions on cross-strait links, China has overtaken the US to become Taiwan's largest export market and, in 2006, its second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Strong trade performance in 2006 pushed Taiwan's GDP growth rate above 4%, and unemployment is below 4%. Consumer spending recovered following a slowdown early in 2006, when banks tightened lending to address a sharp increase in delinquent consumer debt.

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GDP (purchasing power parity): $681.8 billion (2006 est.)

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GDP (official exchange rate): $346.7 billion (2006 est.)

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GDP - real growth rate: 4.7% (2006 est.)

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GDP - per capita (PPP): $29,600 (2006 est.)

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GDP - composition by sector: agriculture: 1.5% industry: 25.2% services: 73.3% (2006 est.)

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Labor force: 10.46 million (2006 est.)

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Labor force - by occupation: agriculture: 5.5% industry: 36% services: 58.5% (2005 est.)

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Unemployment rate: 3.9% (2006 est.)

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Population below poverty line: 0.9% (2006 est.)

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Household income or consumption by percentage share: lowest 10%: 6.7% highest 10%: 41.1% (2002 est.)

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Inflation rate (consumer prices): 1% (2006 est.)

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Investment (gross fixed): 18.4% of GDP (2006 est.)

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Budget: revenues: $67.33 billion expenditures: $77.93 billion (2006 est.)

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Public debt: 34.6% of GDP (2006 est.)

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Agriculture - products: rice, corn, vegetables, fruit, tea; pigs, poultry, beef, milk; fish

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Industries: electronics, petroleum refining, armaments, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals

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Industrial production growth rate: 6.5% (2006 est.)

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Electricity - production: 189.7 billion kWh (2005)

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Electricity - consumption: 175.3 billion kWh (2005)

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Electricity - exports: 0 kWh (2005)

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Electricity - imports: 0 kWh (2005)

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Oil - production: 7,755 bbl/day (2004 est.)

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Oil - consumption: 965,000 bbl/day (2004 est.)

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Oil - exports: NA bbl/day

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Oil - imports: NA bbl/day

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Oil - proved reserves: 4 million bbl (1 January 2005 est.)

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Natural gas - production: 1.1 billion cu m (2005 est.)

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Natural gas - consumption: 10.7 billion cu m (2005 est.)

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Natural gas - exports: 0 cu m (2005)

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Natural gas - imports: 9.6 billion cu m (2005 est.)

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Natural gas - proved reserves: 76.46 billion cu m (1 January 2005 est.)

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Current account balance: $9.7 billion (2006 est.)

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Exports: $215 billion f.o.b. (2006 est.)

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Exports - commodities: computer products and electrical equipment, metals, textiles, plastics and rubber products, chemicals (2002)

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Exports - partners: China 22.5%, Hong Kong 15.7%, US 15%, Japan 7.3% (2006 est.)

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Imports: $205.3 billion f.o.b. (2006 est.)

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Imports - commodities: machinery and electrical equipment 44.5%, minerals, precision instruments (2002)

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Imports - partners: Japan 23%, China 11.9%, US 10.9%, South Korea 7.2%, Saudi Arabia 4.9% (2006 est.)

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Reserves of foreign exchange and gold: $280.6 billion (2006 est.)

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Debt - external: $93.06 billion (2006 est.)

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Currency (code): new Taiwan dollar (TWD)

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Exchange rates: new Taiwan dollars per US dollar - 32.534 (2006), 31.71 (2005), 34.418 (2004), 34.575 (2003), 33.8 (2002)

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Fiscal year: 1 July - 30 June