In 1664, a Chinese fleet led by the Ming loyalist Cheng Ch'eng-kung (Zheng Chenggong, known in the West as Koxinga) retreated from the mainland and occupied Taiwan. Cheng expelled the Dutch and established Taiwan as a base in his attempt to restore the Ming Dynasty. He died shortly thereafter, and in 1683 his successors submitted to Manchu (Qing Dynasty) control. From 1680 the Qing Dynasty ruled Taiwan as a prefecture and in 1875 divided the island into two prefectures, north and south. In 1887 the island was made into a separate Chinese province.
During the 18th and 19th centuries, migration from Fujian and Guangdong provinces steadily increased, and Chinese supplanted aborigines as the dominant population group. In 1895, a weakened Imperial China ceded Taiwan to Japan in the Treaty of Shimonoseki following the first Sino-Japanese war.
During its 50 years (1895-1945) of colonial rule, Japan expended considerable effort in developing Taiwan's economy. At the same time, Japanese rule led to the "Japanization" of the island including compulsory Japanese education and forcing residents of Taiwan to adopt Japanese names.
At the end of World War II in 1945, Taiwan reverted to Chinese rule. During the immediate postwar period, the Nationalist Chinese (KMT) administration on Taiwan was repressive and corrupt, leading to local discontent. Anti-mainlander violence flared on February 28, 1947, prompted by an incident in which a cigarette seller was injured and a passerby was shot to death by Nationalist authorities. The island-wide rioting was brutally put down by Nationalist Chinese troops, who killed thousands of people. As a result of the February 28 Incident, the native Taiwanese felt a deep-seated bitterness to the mainlanders. Until 1995, the KMT authorities suppressed accounts of this episode in Taiwan history. In 1995 a monument was dedicated to the victims of the "2-28 Incident," and for the first time Taiwan's leader, President Lee Teng-hui, publicly apologized for the Nationalists' brutality.
From the 1930s onward a civil war was underway on the mainland between Chiang Kai-shek's KMT government and the Chinese Communist Party led by Mao Zedong. When the civil war ended in 1949, 2 million refugees, predominately from the nationalist government, military, and business community, fled to Taiwan. In October 1949 the People's Republic of China (P.R.C.) was founded on the mainland by the victorious communists, several months before Chiang Kai-shek had established in December 1949 a "provisional" KMT capital in Taipei.
During the 1950s, the KMT authorities implemented a far-reaching and highly successful land reform program on Taiwan. They redistributed land among small farmers and compensated large landowners with commodities certificates and stock in state-owned industries. Although this left some large landowners impoverished, others turned their compensation into capital and started commercial and industrial enterprises. These entrepreneurs were to become Taiwan's first industrial capitalists. Together with refugee businessmen from the mainland, they managed Taiwan's transition from an agricultural to a commercial, industrial economy.
Taiwan has developed steadily into a major international trading power with more than $218 billion in two-way trade. Tremendous prosperity on the island was accompanied by economic and social stability. Chiang Kai-shek's successor, his son Chiang Ching-kuo, began to liberalize Taiwan's political system, a process that has continued when President Lee Teng-hui took office in 1988. The direct election of Lee Teng-hui as president in 1996 was followed by opposition Democratic Progressive Party candidate Chen Shui-bian's election victory in March 2000.
From 1949 until 1991, the authorities on Taiwan claimed to be the sole legitimate government of all of China, including the mainland. In keeping with that claim, when the nationalists moved to Taiwan in 1949, they re-established the full array of central political bodies, which had existed on the mainland. While much of this structure remains in place, the authorities on Taiwan in 1991 abandoned their claim of governing mainland China, stating that they do not "dispute the fact that the P.R.C. controls mainland China."
The first National Assembly, elected on the mainland in 1947 to carry out the duties of choosing the president and amending the constitution, was re-established on Taiwan when the KMT moved. Because it was impossible to hold subsequent elections to represent constituencies on the mainland, representatives elected in 1947-48 held these seats "indefinitely." In June l990, however, the Council of Grand Justices mandated the retirement, effective December 1991, of all remaining "indefinitely" elected members of the National Assembly and other bodies.
The second National Assembly, elected in 1991, was composed of 325 members. The majority was elected directly; 100 were chosen from party slates in proportion to the popular vote. This National Assembly amended the constitution in 1994, paving the way for the direct election of the president and vice president that was held in March 1996. The third National Assembly, also elected in March 1996, comprises 334 members serving 4-year terms. The National Assembly's powers now are to amend the constitution, recall or impeach the president and the vice president, and ratify certain senior-level presidential appointments.
The president is both leader of Taiwan and commander in chief of its armed forces. The president has authority over the five administrative branches (Yuan): Executive, Legislative, Control, Judicial, and Examination. The president appoints the premier, the head of the Executive Yuan. The executive yuan comprises the premier and the cabinet members who are responsible for policy and administration.
The main lawmaking body, the Legislative Yuan (LY), was originally elected in the late 1940s in parallel with the National Assembly. The first LY had 773 seats and was viewed as a "rubber stamp" institution. The second LY was elected in 1992. The third LY, elected in 1995, had 157 members serving 3-year terms. The fourth LY, elected in 1998, was expanded to 225 members. The LY has greatly enhanced its standing in relation to the executive yuan and has established itself as an important player on the central level. Along with increasing strength and size this body is beginning to reflect the recently liberalized political system. In the 1992 and 1995 elections, the main opposition party--the Democratic Progressive Party (DPP)--challenged the KMT dominance of the legislature. In both elections the DPP won a significant share of the LY seats, and the KMT held only half the seats in the LY. In 1998, however, the KMT increased its LY majority from 50 to 55%. Nonetheless, the DPP still remains a viable opposition force.
As the National Assembly took action in 1994 to allow for the popular election of the President, the LY in 1994 passed legislation to allow for the direct election of the governor of Taiwan Province and the mayors of Taipei and Kaohsiung Municipalities. These elections were held in December 1994, with the KMT winning the governor and Kaohsiung mayor posts, and the DPP winning the Taipei mayor's position. In 1998, the KMT's Ma Ying-jeou wrestled back control of the mayorship of Taipei from the opposition DPP's most prominent figure Chen Shui-bian. In the same elections, however, the DPP's Frank Hsieh managed to defeat Kaoshiung's KMT incumbent.
In a move to streamline the administration, the position of elected governor and many other elements of the Taiwan Provincial Government were eliminated at the end of 1998. In November 1997 local elections, the DPP won 12 of the 23 county magistrate and city mayor contests to the KMT's 8, outpolling the KMT for the first time in a major election.
The Control Yuan(CY) monitors the efficiency of public service and investigates instances of corruption. The 29 Control Yuan members are appointed by the president and approved by the National Assembly; they serve 6-year terms. In recent years, the Control Yuan has become more activist, and it has conducted several major investigations and impeachments.
The Judicial Yuan (JY) administers Taiwan's court system. It includes a 16-member Council of Grand Justices (COGJ) that interprets the constitution. Grand Justices are appointed by the president, with the consent of the National Assembly, to 9-year terms.
The Examination Yuan (ExY) functions as a civil service commission and includes two ministries: the Ministry of Examination, which recruits officials through competitive examination, and the Ministry of Personnel, which manages the civil service. The President appoints the Examination Yuan's head.
This change in the political process is the result of the liberalizing trend that began in the 1980s under President Chiang Ching-kuo. In 1987, he lifted the emergency decree, which had been in place since 1948 and which had granted virtually unlimited powers to the president for use in the anticommunist campaign. This decree provided the basis for nearly four decades of martial law under which individuals and groups expressing dissenting views were dealt with harshly. Expressing views contrary to the authorities' claim to represent all of China or supporting independent legal status for Taiwan was treated as sedition. Lee Teng-hui succeeded Chiang Ching-kuo as president when Chiang died on January 13, 1988. Lee was elected by the National Assembly to a 6-year term in 1990, marking the final time a president was elected by the National Assembly. In 1996, Lee Teng-hui was elected president and Lien Chan vice president in the first direct election by Taiwan's voters.
Since ending martial law, Taiwan has taken dramatic steps to improve respect for human rights and create a democratic political system. Most restrictions on the press have ended, restrictions on personal freedoms have been relaxed, and the prohibition against organizing new political parties has been lifted.
In the 1960s, foreign investment in Taiwan helped introduce modern, labor-intensive technology to the island, and Taiwan became a major exporter of labor-intensive products. In the 1980s, focus shifted toward increasingly sophisticated, capital-intensive and technology-intensive products for export and toward developing the service sector. At the same time, the appreciation of the New Taiwan dollar (NT$), rising labor costs, and increasing environmental consciousness in Taiwan caused many labor-intensive industries, such as shoe manufacturing, to move to the Chinese mainland and Southeast Asia.
Taiwan has transformed itself from a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor, especially in Asia. Private Taiwan investment in the P.R.C. is estimated to total more than $30 billion, and Taiwan has invested a comparable amount in Southeast Asia.
At the same time, Taiwan has cultivated informal ties with most countries to offset its diplomatic isolation and to expand its economic relations. A number of nations have set up unofficial organizations to carry out commercial and other relations with Taiwan. Between its official overseas missions and its unofficial representative and/or trade offices, Taiwan is represented in 149 countries. Recently, Taiwan has lobbied strongly for admission into international organizations such as the United Nations. The P.R.C. opposes Taiwan's membership in such organizations, most of which require statehood for membership, because Beijing considers Taiwan to be a province of China, not a separate sovereign state.
On April 10, 1979, President Carter signed into law the Taiwan Relations Act (TRA), which created domestic legal authority for the conduct of unofficial relations with Taiwan. U.S. commercial, cultural, and other interaction with the people on Taiwan is facilitated through the American Institute in Taiwan (AIT), a private nonprofit corporation. The Institute has its headquarters in the Washington, DC, area and has offices in Taipei and Kaohsiung. It is authorized to issue visas, accept passport applications, and provide assistance to U.S. citizens in Taiwan. A counterpart organization, the Taipei Economic and Cultural Representative Office in the United States (TECRO), has been established by the Taiwan authorities. It has its headquarters in Taipei, the representative branch office in Washington, DC, and 11 other Taipei Economic and Cultural Offices (TECO) in the continental U.S. and Guam.
Following derecognition, the United States terminated its Mutual Defense Treaty with Taiwan. However, the United States has continued the sale of appropriate defensive military equipment to Taiwan in accordance with the Taiwan Relations Act which provides for such sales and which declares that peace and stability in the area are in U.S. interests. Sales of defensive military equipment also are consistent with the 1982 U.S.-P.R.C. Joint Communique. In this communique, the United States stated that "it does not seek to carry out a long-term policy of arms sales to Taiwan" and that U.S. arms sales would "not exceed, either in qualitative or in quantitative terms, the level of those supplied in recent years," and that the U.S. intends "gradually to reduce its sale of arms to Taiwan." The P.R.C., in the 1982 communique, stated that its policy was to strive for a peaceful resolution of the Taiwan question.
U.S. commercial ties with Taiwan have been maintained and have expanded since 1979. Taiwan continues to enjoy Export-Import Bank financing, Overseas Private Investment Corporation guarantees, normal trade relations (NTR) status, and ready access to U.S. markets.
In recent years, U.S. Government economic dealings with Taiwan have focused on expanding market access for American goods and services. AIT has been engaged in a series of trade negotiations, which have focused on protection of intellectual property rights, and issues relating to Taiwan's accession to the WTO. In February 1998, the U.S. completed a bilateral market access agreement with Taiwan, an important step forward in Taiwan's WTO accession process.
Maintaining diplomatic relations with the P.R.C. has been recognized to be in the long-term interest of the United States by six consecutive administrations; however, maintaining strong, unofficial relations with Taiwan also is in the U.S. interest. The United States is committed to these efforts because they are important for America's global position and for peace and stability in Asia. In keeping with its one-China policy, the U.S. does not support "two Chinas," "one China, one Taiwan," or Taiwan independence. Nor does the United States support Taiwan's efforts to become a member of the UN or other organizations in which membership is limited to states. The U.S. does support Taiwan's membership in other appropriate international organizations, such as the APEC forum and the Asian Development Bank, in which statehood is not a requirement for membership. In addition, the U.S. supports appropriate opportunities for Taiwan's voice to be heard in organizations where its membership is not possible.
American Institute in Taiwan, Taipei Office No. 7, Lane 134, Hsin Yi Road, Section 3, Taipei, Taiwan Tel: 011-886-2-2709-2000; fax 011-886-2-2702-7675 American Institute in Taiwan, Kaohsiung Office 5F, No. 2, Chung Cheng 3rd Road; Kaohsiung, Taiwan 800 Tel: 011-886-7-224-0154; fax 011-886-7-223-8237