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<h1>Overseas Office Republic Of China ( Taiwan ) 中華民國（台灣）駐外單位聯合網站</h1>
<div class="Path">Path:<a href="dp.asp?mp=1" title="Home">Home</a><img src="/xslgip/Main/images/path_arrow.gif" alt="arrow towards right"><a href="np.asp?ctNode=2241&mp=1&xp1=1" title="About Taiwan">About Taiwan</a><img src="/xslgip/Main/images/path_arrow.gif" alt="arrow towards right"><a href="np.asp?ctNode=2242&mp=1&xp1=1" title="Who We Are">Who We Are</a><img src="/xslgip/Main/images/path_arrow.gif" alt="arrow towards right"><a href="np.asp?ctNode=2243&mp=1&xp1=1" title="History ">History </a></div>
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<h1>History</h1>
<div class="Date">Post Date:2007/7/25</div>
<div class="Body">
<p><p>The history of Taiwan is a story of both frustrations and miracles. Early   Taiwan, isolated and underdeveloped, had been a neglected island until the 17th   century. However, during the age of exploration and maritime conquest by   Europeans, Taiwan attracted the world's attention because of its strategic   location and trading position. The Dutch and the Spanish independently colonized   parts of northern and southern Taiwan. In 1661-1662,Ming 明 (1368-1644) general Jheng Cheng-gong 鄭成功 defeated the   Dutch and set up a government on Taiwan to defy the Manchus, who had established   the Ching 清 (1644-1911) dynasty on the Chinese mainland. The Manchus conquered   Taiwan in 1683 and ruled it until 1895, when Taiwan was ceded to Japan after the   First Sino-Japanese War. At the end of World War II in 1945, Japan relinquished   Taiwan, which in turn came to be ruled by the Republic of China (ROC).</p>
<p>The past half-century has witnessed sweeping transformations in   Taiwan. In the postwar years, Taiwan's people encountered numerous formidable   challenges. Nevertheless, their enterprising spirit and tireless efforts helped   them overcome the difficulties they faced and bring about world-acclaimed   economic achievements. Taiwan is now one of the most prosperous, industrialized,   technologically advanced countries in East Asia and the world. In addition,   Taiwan's people achieved democratization by transforming their government from   one of one-party authoritarian rule to one in which free elections determine who   governs the nation. The high point of this long and difficult process came when   executive power was handed over, peacefully, by the Kuomintang (KMT;   "Nationalist Party") 中國國民黨 to the Democratic Progressive Party (DPP) 民主進步黨, in   2000. These events made Taiwan the world's first predominately ethnic Chinese   society to become a democracy.</p>
<p>This chapter briefly summarizes Taiwan's history, from traces   of early inhabitants to the latest developments concerning the ROC on Taiwan.</p>
<H2>Earliest Inhabitants</H2>
<p>Taiwan's first inhabitants left no written records of their origins.   Anthropological evidence suggests that Taiwan's indigenous peoples are of   proto-Malayan ancestry. The morphology and syntax of their languages belong to   the Austronesian language family, with whose speakers they share many customs   and cultural features such as tattooing, gerontocracy, and spirit worship. Over   1,000 prehistoric sites in Taiwan, including many dwelling areas, tombs, and   shell mounds, have provided more and seemingly contradictory clues to the   origins of Taiwan's aborigines. The majority of prehistoric artifacts, such as   flat axes, unpolished red pottery, decorated bronze implements, and glazed   beads, suggest a southern connection. Other items, such as painted red pottery,   polished red pottery, chipped stone knives, black pottery, stone halberds,   pottery tripods, and bone arrowheads, suggest that Taiwan's earliest settlers   might have come from the Asian continent. Many questions remain unanswered, such   as whether these prehistoric remains were left by the ancestors of today's   indigenous peoples.</p>
<p>What is known for certain is that tribes of indigenous peoples, plus Han   people from China, were already living in Taiwan when survivors of a Portuguese   shipwreck first visited the island in 1582.</p>
<H2>European Colonization</H2>
<p>When Portuguese navigators sailed past Taiwan to Japan in the mid-16th   century, they were impressed by the beauty of the island's green mountains   rising steeply out of the blue-green waters of the Pacific and exclaimed, "Ilha   Formosa (meaning "beautiful island")!" The island was thus known as Formosa to   the West for centuries. With limited interest in the island, however, the   Portuguese never established a permanent settlement on Taiwan. <BR>
    <BR>
  The next   groups of Europeans to come to Taiwan were the Dutch and the Spanish. In 1622,   the Dutch East India Company established a military base on the Penghu Islands   (Pescadores) 澎湖群島, but were forced out by Ming forces from China and moved to   Taiwan in 1624, where they established a colonial capital and ruled for the next   38 years. Two years later, the Spanish occupied northern Taiwan to   counterbalance the Dutch expansion, building Keelung 基隆 and Danshuei 淡水 as their   bases for trade and the Christianization of the island's inhabitants. The   Spanish were forced off the island by the Dutch in 1642.</p>
<p>Taiwan became a trading and transshipment center for goods between Japan,   China, Batavia (Jakarta), Persia, and Holland. To promote trade, the Dutch   encouraged people from China to migrate to Taiwan in the 1630s to grow sugarcane   and rice. An agricultural revolution began on the island, and the amount of land   under cultivation increased greatly. Until only half a century ago, sugar and   rice were the mainstays of Taiwan's economy. Taiwan became one of the most   lucrative branches of the Dutch East India Company in the Far East, accounting   for 26 percent of the company's profits in 1649.</p>
<p>In addition to economic development, Dutch missionaries actively sought to   convert Taiwan's population to Christianity. Protestant missionaries established   schools where religion and the Dutch language were taught. By 1659, the Dutch   had converted 6,078 out of 10,109 inhabitants in their parishes to   Christianity.<BR>
    <BR>
  Settlement by Han people in Taiwan dates back to the 16th   century, but large-scale immigration did not begin until the 1630s, when the   Dutch started developing Taiwan's agriculture. While the Dutch were colonizing   Taiwan, China was experiencing a series of rebellions, which were followed by   the invasion of the Manchus, who established the Ching dynasty in 1644. As   endless wars, famines, and plundering made life more difficult than usual for   the average Chinese, thousands of people, especially those from the coastal   provinces of Fuchien (Fujian) 福建 and Guangdong 廣東, migrated across the Taiwan   Strait to Taiwan. About 40,000 Chinese had moved to Taiwan by 1662.</p>
<p>European colonization marked the beginning of foreign rule over Taiwan,   brought the island into the global commercial marketplace, and saw the   immigration of large numbers of Han Chinese. These developments had a lasting   impact on Taiwan, helping to shape its culture and open its society.</p>
<table cellspacing="0" cellpadding="0" title="排版表格用">
  <TR>
    <TD align="middle" bgColor="#c7a83f" colSpan="2">Key Events in   Taiwan's History (1624-2005)</TD>
  </TR>
  <TR>
    <TD bgColor="#f0e7c4" colSpan="2">European colonization </TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1624</TD>
    <TD vAlign="top" bgColor="#fffffd">Beginning of Dutch   colonization</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1626</TD>
    <TD bgColor="#fffffd">Beginning of Spanish colonization (northern   Taiwan)</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1642</TD>
    <TD bgColor="#fffffd">Spanish driven out by the  Dutch</TD>
  </TR>
  <TR vAlign="top" bgColor="#f0e7c4">
    <TD colSpan="2">Reign of the Jheng family</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1621-1622</TD>
    <TD vAlign="top" bgColor="#fffffd">Beginning of the first Han   administration with Jheng Cheng-gong's defeat of the Dutch</TD>
  </TR>
  <TR vAlign="top" bgColor="#fcfaf3">
    <TD bgColor="#f0e7c4" colSpan="2">Ching rule</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1683</TD>
    <TD vAlign="top" bgColor="#fffffd">Replacement of the Jheng family   as rulers of Taiwan by the Manchus</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1885</TD>
    <TD vAlign="top" bgColor="#fffffd">Incorporation of Taiwan as the   22nd province of China</TD>
  </TR>
  <TR vAlign="top" bgColor="#f0e7c4">
    <TD vAlign="top" colSpan="2">Japanese colonization</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1895</TD>
    <TD vAlign="top" bgColor="#fffffd">Taiwan ceded to Japan under the   Treaty of Shimonoseki</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1930</TD>
    <TD vAlign="top" bgColor="#fffffd">Wushe Uprising</TD>
  </TR>
  <TR vAlign="top" bgColor="#f0e7c4">
    <TD vAlign="top" colSpan="2">The ROC on Taiwan</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1945</TD>
    <TD vAlign="top" bgColor="#fffffd">Control of Taiwan passed to the   ROC government</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1947</TD>
    <TD vAlign="top" bgColor="#fffffd">February 28 Incident</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1971</TD>
    <TD vAlign="top" bgColor="#fffffd">Withdrawal of the ROC from the   United Nations</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1979</TD>
    <TD vAlign="top" bgColor="#fffffd">Termination of diplomatic ties   with the ROC by the United States<BR>
      Kaohsiung Incident</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1986</TD>
    <TD vAlign="top" bgColor="#fffffd">Formation of the Democratic   Progressive Party (DPP)</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1987</TD>
    <TD vAlign="top" bgColor="#fffffd">Lifting of martial law (had been   in effect since 1949)<BR>
      Lifting of the ban on private visits to China</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">1996</TD>
    <TD vAlign="top" bgColor="#fffffd">Taiwan's first direct   presidential election</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">2000</TD>
    <TD vAlign="top" bgColor="#fffffd">Taiwan's second direct   presidential election<BR>
      Transfer of political power from Kuomintang to   DPP</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">2002</TD>
    <TD vAlign="top" bgColor="#fffffd">Accession of Taiwan to the World   Trade Organization</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">2004</TD>
    <TD vAlign="top" bgColor="#fffffd">Holding of the third direct   presidential election along with the first national referendum</TD>
  </TR>
  <TR>
    <TD vAlign="top" align="middle" bgColor="#fcfaf3">2005</TD>
    <TD vAlign="top" bgColor="#fffffd">Passing of constitutional   amendments to abolish the National Assembly and reform the electoral system with   regard to the Legislature</TD>
  </TR>
</table>
<H2>Administration under the Jheng   Family</H2>
<p>As Manchu troops poured into northern China, many Ming loyalists escaped to   the south, where they resisted the foreign invasion for over 20 years. One of   the most celebrated resistance fighters was Jheng Cheng-gong, also known as   Koxinga 國姓爺. He forced the Dutch out of Taiwan in 1662 and made the island his   base for counter-attacking the Manchus.</p>
<p>Jheng Cheng-gong established the first Han political administration in   Taiwan. He governed Taiwan as a sovereign country and exercised control over the   island's domestic and foreign affairs. Under the rule of Jheng Cheng-gong and   his son, Jheng Jing 鄭經, a Chinese-style political system and Han culture were   introduced to Taiwan. In addition, agriculture and trade were both promoted to   develop the island's economy. Also, a steady stream of Chinese continued to   arrive in Taiwan, and settlements sprang up along the western coast. Under the   rule of the Jheng family, the population of Han Chinese on Taiwan reached about   120,000.</p>
<p>The Jheng family ruled Taiwan for 22 years before it was defeated by Ching   forces in 1683.</p>
<H2>Ching Rule over the Island</H2>
<p>Taiwan was under the control of the Ching dynasty from 1683 until 1895.   During this period, agriculture was expanded, and increasing numbers of Chinese   left the mainland to settle on the island, despite laws restricting freedom of   movement. Rice and sugar, first developed during the reign of the Dutch, were   cultivated and exported to China, Japan, and even Australia for some time.</p>
<p>Following the Ching's defeat in the Second Opium War (1856-1860), four ports   in Taiwan were forcibly opened to foreign trade, namely present-day Danshuei,   Tainan 臺南, Keelung, and Kaohsiung. Tea and camphor, which enjoyed large global   markets, became major cash crops for export. Being the production area for new   crops as well as coal, northern Taiwan surpassed southern Taiwan as the island's   economic center, with Taipei superseding Tainan as the new political capital.   However, conflicts between immigrants and indigenous peoples intensified when   the Chinese encroached on the mountainous areas to produce tea and camphor.</p>
<p>Taiwan's resources attracted international attention, and some countries even   attempted to seize this island. Japan occupied part of southern Taiwan briefly   in 1874, and the French invaded northern Taiwan in 1884-1885 during the   Sino-French War.</p>
<p>Foreign interest in the island made the Ching court realize Taiwan's   importance as a gateway to the provinces along China's southeastern coast. To   consolidate Ching rule, a number of officials stationed in Taiwan in the 1870s   and 1880s strengthened defenses, mined coal, and laid telegraph lines between   northern and southern Taiwan as well as with Fujian Province. The Ching dynasty   incorporated Taiwan as its 22nd province in 1885, and Liou Ming-chuan 劉銘傳 became   the first governor. Under Ching rule, Taiwan was fully integrated into the   Manchu empire, and numerous Taiwanese attended traditional academies, passed   civil service examinations, and some became government officials. </p>
<H2>Japanese   Colonization</H2>
<p>In 1894, the First Sino-Japanese War broke out when the Japanese invaded   Korea, a longstanding tributary state of China. Following China's defeat, Taiwan   was ceded to Japan in April 1895 under the Treaty of Shimonoseki. Meanwhile, in   protest against this move, Taiwan's Ching governor announced the establishment   of the Republic of Taiwan 臺灣民主國 in May. When Japanese troops entered Taipei on   June 7 of that year, armed resistance broke out. Many Taiwanese joined the local   militia to fight against the Japanese troops. However, these anti-Japanese   efforts were crushed within a few months.</p>
<p>The period of Japanese colonization can be roughly divided into three   periods:</p>
<UL>
  <LI>Pacification and special governance (1895-1919): The Japanese used the   military and police to suppress dissent. In light of the differences between   Japan and Taiwan, the colonial government introduced a legal system different   from that in force in Japan. Several measures, such as the regulation of   opium-smoking as well as land reform, were introduced to pacify the Taiwanese.   Also at this time, the government nationalized opium, camphor, salt, and other   products, and helped to establish some important industries such as sugar and   coal.<BR>
      <BR>
  <LI>Assimilation of Taiwanese as an extension of the Japanese homeland   (1919-1936): Japan claimed that the rights of Taiwanese were also protected   under its domestic codes. Compulsory Japanese education and cultural   assimilation were emphasized, while economic development was promoted to   transform the island into a secure base from which Japan could launch its   southward expansion.<BR>
      <BR>
  <LI>Kominka (Japanization) (1936-1945): The colonial government adopted a   Japanization policy to naturalize Taiwan's residents as Japanese citizens.   Taiwanese were forced to deny their heritage by adopting Japanese names,   clothing, cuisine, and religious rituals. The use and practice of Chinese   dialects and customs were discouraged, and Chinese-language schools were closed.   Heavy industry and foreign trade were strongly emphasized during this period to   meet Japanese needs in World War II. </LI>
</UL>
<p>Japanese development of Taiwan was extensive, as modern transportation and   infrastructure, agricultural research and development, public health, banking,   education and literacy, cooperatives, as well as business practices were brought   to Taiwan. Such development, however, was primarily for the benefit of Japan,   not Taiwan. Moreover, the Taiwanese were denied the right of self-governance and   were kept out of high positions in all facets of society. People were taught to   see themselves as Japanese and, during World War II, tens of thousands served in   the Japanese military. These policies consequently led to recurrent protests.   For instance, a movement for the establishment of a Taiwan Assembly 臺灣議會 was   launched mainly by Taiwanese students in Japan in the 1920s and 1930s seeking   self-governance for Taiwan, but the effort came to nothing. A short but bloody   conflict, known as the Wushe Uprising 霧社事件, began in October 1930 in Nantou 南投,   where the Atayal tribal leader Mona Rudao 莫那魯道 led indigenous people to fight   against colonial rule. Japanese troops used modern weapons, including poison   gas, to crush the insurrection. After nearly two months of fighting, the   rebellion was put down. Hundreds of Atayal had been killed or had committed   suicide by the time the revolt ended. In 1945, following Japan's defeat and   surrender at the end of World War II, the Republic of China assumed control of   Taiwan.</p>
<H2>The ROC on Taiwan</H2>
<p>In 1949, the Nationalist government in Nanjing relocated to Taiwan after   losing a civil war against the Chinese Communists. The influx of around one and   a half million soldiers and civilians from the mainland turned the island into a   frontline of the Cold War. With the start of the Korean War in June 1950, the   United States dispatched its Seventh Fleet to protect Taiwan from attack by the   communists and began to provide Taiwan with considerable economic and military   assistance. Taiwan became the focus of attention again in August 1958, when the   communists attempted to take over the islands of Kinmen (Quemoy) 金門 and Matsu   馬祖. The attacks eventually stopped, and in October 1958, the US and ROC   governments issued a joint communiqu&eacute; reaffirming their solidarity. Invaluable   military support continued through the 1950s and 1960s, preventing Taiwan from   being conquered by the communists.</p>
<p>The history of Taiwan after 1949 is one of sweeping change. Over the past few   decades, rapid economic development has made the island one of the world's   largest and most dynamic economies, with rapid industrialization, urbanization,   and modernization dramatically transforming the lives of Taiwan's residents.   Following the lifting of martial law in 1987, a process of democratization   began, and eventually Taiwan became the first ethnic Chinese democracy. </p>
<p>The following sections summarize Taiwan's economic transformation, political   development, as well as foreign and cross-strait relations since 1949.</p>
<TABLE borderColor="#ffffff" cellSpacing="0" cellPadding="2" width="100%" align="center" bgColor="#f6f0e0" border="1">
    <TR>
      <TD align="middle" bgColor="#c7a83f">February 28   Incident</TD>
    </TR>
    <TR>
      <TD bgColor="#f0e7c4"><p>The first years after the Japanese surrender were not smooth and resulted in   one of Taiwan's greatest tragedies, the February 28 Incident 二二八事件. The troops   sent by the Kuomintang (KMT) government to take over Taiwan were poorly trained   and undisciplined, while the major fighting force remained on the mainland   battling the Communists. Most importantly, high inflation, shortages of daily   necessities, unjust appropriation of personal property, profiteering, and   rampant corruption angered Taiwan's natives.</p>
          <p>The tension finally exploded on February 28, 1947, following an incident in   Taipei where a woman was hit while resisting arrest for selling untaxed   cigarettes and a bystander was shot dead during the commotion. Crowds rioted   throughout the island after their demands for reform were ignored, seizing   police stations, arms, and radio stations and even killing some recent arrivals   from China. In the succeeding weeks, military reinforcements arrived from the   mainland, whereupon Governor Chen Yi 陳儀 proceeded to arrest and execute   thousands of people who had demanded government reforms. The incident has   continued to be a source of friction between descendants of early immigrants and   those who arrived in Taiwan after the end of World War II.</p>
        <p>The government began to take steps in the 1990s to promote national unity,   achieve social harmony, and heal the rift that had developed between these   groups. In 1995, President Lee Teng-hui 李登輝 made the first formal apology for   the incident on behalf of the government, and the <EM>February 28 Incident   Disposition and Compensation Act</EM> 二二八事件處理及補償條例 was enacted to commemorate   and compensate those harmed by the incident. In 1996, Taipei Mayor Chen   Shui-bian 陳水扁 announced the establishment of the 228 Peace Park 二二八和平公園. In   1997, the Executive Yuan designated February 28 a national holiday. In 2003,   President Chen Shui-bian presented rehabilitation certificates to the victims of   the incident and their families.</p></TD>
    </TR>
</TABLE>
<H3>Economic Transformation</H3>
<p>When the Nationalist government moved to Taipei in 1949, the economy of   Taiwan was still recovering from heavy Allied bombing during World War II. Only   some industrial facilities remained intact; these included sugar refineries and   some textile factories. In the initial years, two factors helped stabilize the   situation and lay the foundation for a future economic takeoff: aid from the   United States and the land reform program.</p>
<p>From 1951 to 1965, large amounts of economic and military aid came from the   United States. Much of the aid was used to improve Taiwan's infrastructure and   the agricultural sector. US advisors stationed in Taiwan and Taiwanese who had   studied abroad were all directed to rebuild the economy. The highly successful   land reform program, beginning in 1949, reduced land rent, distributed public   land, and purchased and resold land from landlords with large holdings. Farmers   were supplied with fertilizer, seeds, pesticides, expert advice, and credit. By   1959, 90 percent of exports were agricultural or produce-related. Increased   production and higher income resulted in low inflation and capital accumulation,   as importing foodstuffs was unnecessary.</p>
<p>After land reform policies and economic assistance had formed a solid   foundation for the economy, two policies of the 1950s and 1960s led to a   remarkable takeoff in the 1970s. The first was an import-substitution policy   aimed at making Taiwan self-sufficient by producing inexpensive consumer goods,   processing imported raw materials, and restricting other imports. Realizing   Taiwan's relatively small domestic economy of scale, the government adopted a   second policy of export promotion in the late 1950s that continued throughout   the 1960s. Using Japan as a model and following US advice, the resource-poor,   labor-rich island began to expand its light industries. Export-processing zones   free of bureaucratic red tape were set up with special tax incentives to attract   overseas investment. Within a short time, Taiwan had become known   internationally as an exporter of products of which it was the original   equipment manufacturer.</p>
<p>Between 1962 and 1985, Taiwan's economy experienced its most rapid growth in   history: an average annual growth rate of nearly 10 percent, or more than twice   the average economic growth rate of industrialized countries during this period.   Equitable distribution of income was a major objective in the government's   economic planning. In 1953, average income of the top 20 percent of the   population was estimated at 20 times that of the bottom 20 percent. In the   1980s, this 1:20 ratio was reduced to a range of between 1:5 and 1:4.</p>
<p>A key element in Taiwan's steady economic growth is the implementation of 
universal education throughout the island. After 1949, the government expanded 
education to raise literacy rates. In 1951, 34.6 percent of the population six 
years and older was illiterate. This figure had dropped to 15.3 percent by 1969 
(and to 2.84 percent of the population over 15 years of age in 2004). In 1968, 
six-year compulsory education, a right stipulated in the Constitution, was 
extended to nine years. Additional technology and vocational colleges also met 
the needs of the industrial sector during the economic takeoff. </p>
<p>Beginning in the 1980s, the government implemented a series of plans to   liberalize and internationalize the economy and to privatize state-run   enterprises. Taiwan's first science-based industrial park, the Hsinchu Science   Park 新竹科學工業園區, was also established to upgrade industries. Labor-intensive   industries, once the mainstay of Taiwan's economy, gave way to technology- and   capital-intensive industries. In the 1990s, the electronics and   information-technology sectors expanded rapidly to become Taiwan's main   industries, accounting for more output and exports than any other sector in the   manufacturing industry. The service sector's performance during this stage was   outstanding, averaging an annual growth rate of 9 percent. All of these signs   indicate that a knowledge-based economy has taken root in Taiwan.</p>
<p>Another significant economic trend beginning in the 1980s was the rise of   investments in China by Taiwan's business community. After martial law was   lifted in 1987, private contacts between Taiwan and China were allowed. By 2005,   registered investments in China totaled US$47.32 billion. The sharp increase of   Taiwan's exports to China beginning in the 1990s decreased the island's   dependence on the US market, but raised new concerns of growing economic   reliance on this long-time rival.</p>
<p>Owing to globalization and trade liberalization, as well as the rise of 
neighboring China as a new economic power, Taiwan's economic development in the 
new century will have to meet new challenges at home and abroad. In response, 
the government has taken concrete measures to upgrade Taiwan's industries, 
conducted financial reforms to foster a more attractive investment environment, 
and promoted environmental protection to achieve sustainable development. 
Development plans were formulated to transform Taiwan into a &quot;green silicon 
island.&quot; Several major construction projects are also under way. </p>
<H3>Political Development</H3>
<p>The relocation of the Nationalist government to Taiwan at the end of the   Chinese civil war marked the beginning of the period of martial law (1949-1987)   in Taiwan, which imposed press censorship, banned new political parties, and   restricted freedoms of speech, publication, assembly, and association. Despite   these restrictions, direct elections for chief executives and representatives   below the provincial level were held from 1950.<BR>
    <BR>
  Following the death of   Chiang Kai-shek in 1975, Yen Chia-kan 嚴家淦 served as president until Chiang's   son, Chiang Ching-kuo 蔣經國, was elected in 1978. In 1987, shortly before his   death, Chiang lifted martial law, which made full democratization possible.</p>
<p>The late 1970s and early 1980s saw the growth and evolution of the <EM>dangwai</EM> 黨外 ("KMT-party outsiders") democratic opposition movement. In   December 1979, a rally in Kaohsiung sponsored by opposition leaders and <EM>Formosa</EM> magazine 美麗島雜誌 to commemorate International Human Rights Day   turned into a bloody conflict between demonstrators and military police (known   as the Kaohsiung Incident 美麗島事件). Many opposition figures were arrested and   sentenced to long prison terms. Nevertheless, this event paved the way for a   united and organized opposition to the ruling KMT. The formation of the   Democratic Progressive Party (DPP) on September 28, 1986 was a landmark moment   in Taiwan's progression towards multi-party democracy.<BR>
    <BR>
  Chiang Ching-kuo's   successor, Lee Teng-hui, continued to reform the rigid political system that had   been in place during decades of civil war and martial law. Under his   administration, press freedoms were respected, opposition political parties   developed, visits to China increased dramatically, and the Constitution was   revised to allow for the popular election of all legislators and the   president.</p>
<p>Taiwan's first direct presidential election was held in 1996, and KMT   incumbent Lee Teng-hui was re-elected. But the real test of Taiwan's democratic   progress came with the first transfer of power in March 2000. DPP candidate Chen   Shui-bian won the second presidential election, ending the KMT's 
half-century hold on the presidency. This blossoming of Taiwan's democracy after 
decades of germination and growth was truly a historic turning point, completing 
the country's transformation from a one-party state to a full-fledged democracy. 
Chen was re-elected in March 2004.</p>
<H3>Foreign Relations</H3>
<p>The ROC was a founding member of the United Nations (UN) in 1945. However, in   1971, the People's Republic of China (PRC) succeeded in taking the seat held   previously by the ROC following the passage of UN Resolution 2758. Since then,   most UN members have switched their diplomatic allegiance from Taipei to   Beijing. In 1979, the United States severed diplomatic ties with the ROC and   abrogated the 1954 Mutual Defense Treaty. In the absence of formal relations,   the Taiwan Relations Act was passed by the US Congress to maintain substantive   ties with Taiwan, including the sale of defensive weaponry to help defend   Taiwan.</p>
<p>With the emergence of &quot;Taiwan consciousness&quot; and rising political and civic 
awareness in the 1990s, the people have had greater expectations of their 
government. As a result, new efforts have been made to increase Taiwan's 
participation in international affairs. Collectively known as pragmatic 
diplomacy, this policy included a revived effort to expand and consolidate 
formal diplomatic ties, a new campaign to re-enter international organizations, 
and an increased emphasis on substantive ties with the US, Japan, and Europe. 
These efforts have born fruit. For example, after 12 years of negotiation, 
Taiwan gained entry to the World Trade Organization in January 2002. 
Nevertheless, Taiwan's ultimate goal of gaining UN membership is still being 
blocked by Beijing. </p>
<H3>Cross-strait Relations</H3>
<p>Relations with China were forbidden during the martial law period. As Taiwan   prospered economically and the mainland undertook radical reforms to open to the   outside world, the reasons for martial law were no longer seen as valid. In   1987, Taiwan officially permitted its citizens to visit their relatives in   China. Since then, cross-strait ties have grown rapidly.</p>
<p>During the 1990s, the two sides carried out consultations through two private   organizations, Taiwan's Straits Exchange Foundation (SEF) 海峽交流基金會 and China's   Association for Relations Across the Taiwan Straits (ARATS) 海峽兩岸關係協會, which met   intermittently to discuss matters concerning cross-strait civil affairs, such as   the extradition of hijackers and those from China who enter Taiwan illegally and   solutions to fishing disputes. However, consultations were interrupted when   Beijing test-fired missiles into waters near Taiwan following President Lee   Teng-hui's visit to the US in 1995 and prior to Taiwan's first direct   presidential election in 1996. Tensions also increased after President Lee   described the cross-strait relationship as a "state-to-state" relationship in   1999.</p>
<p>Cross-strait relations entered a new era following Chen Shui-bian's victory   in the 2000 presidential election. In addition to pledges to maintain the status   quo, the DPP-led government has extended many olive branches to Beijing, calling   for talks to set up a peace and stability framework for cross-strait   interactions. The administration liberalized measures in trade, investment, and   tourism. It also allowed cross-strait charter flights on special holidays and   sea transportation links between Taiwan's outlying islands and China. The PRC, 
however, still refuses to renounce the use of force against Taiwan and has been 
increasing its military deployment along its southeastern coast. In 2005, 
China's National People's Congress passed an &quot;anti-separation law&quot; (the 
so-called anti-secession law), which provides China with a legal pretext to 
forcefully and unilaterally change the status quo in the Taiwan Strait. Such an 
action poses a great threat to stability and peace in the Asia-Pacific region. 
About one million people in Taiwan took to the streets in March 2005 to express 
their opposition to China's enactment of the law.</p>
<p>Related Websites <BR>
  Academia Sinica： <A href="http://www.sinica.edu.tw/" target="_nwMof">http://www.sinica.edu.tw</A> <BR>
  Academia Historica： <A href="http://www.drnh.gov.tw/" target="_nwMof">http://www.drnh.gov.tw</A> <BR>
Taiwan Historica： <A href="http://www.th.gov.tw/" target="_nwMof">http://www.th.gov.tw</A> </p>
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