Taiwan

Taiwan is a sovereign state in East Asia. The Republic of China, originally based in mainland China, now governs the island of Taiwan, which constitutes more than 99% of its territory, as well as Penghu, Kinmen, Matsu, and other minor islands, following its loss of the mainland China territory in 1949 in the Chinese Civil War. This remaining area is also constitutionally called the "Free Area of the Republic of China," which is free from Communist rule.

Neighboring states include the People's Republic of China to the west (mainland China), Japan to the east and northeast, and the Philippines to the south. Taiwan is one of the most densely populated countries in the world with a population density of 648 people per km^2 in July 2015. Taipei is the seat of the central government, and together with the surrounding cities of New Taipei and Keelung forms the largest metropolitan area on the island. The Republic of China continued to represent China at the United Nations until 1971, when the PRC assumed China's seat via Resolution 2758 and the ROC lost its UN membership. International recognition of the ROC has gradually eroded as most countries switched recognition to the PRC. 21 UN member states and the Holy See currently maintain official diplomatic relations with the ROC. It has unofficial ties with most other states via its representative offices.

During the latter half of the 20th century, Taiwan experienced rapid economic growth and industrialization and is now an advanced industrial economy. In the 1980's and 1990's, Taiwan evolved into a multi-party democracy with universal suffrage. Taiwan is one of the Four Asian Tigers and a member of the WTO and APEC. The 21st-largest economy in the world, its high-tech industry plays a key role in the global economy.

Government and Politics
Ties with China improved when President Ma Ying-jeou of the China-friendly ruling Nationalists took power in March 2008.

Taiwan voted in January 2016 for a new president and parliament when the Nationalists (KMT) were expected to be beaten by the Democratic Progressive Party (DPP), supported by youthful voters angered by a perceived economic dependence on the mainland. The DPP was loathed by Communist Party rulers in Beijing due to intended independence.

Foreign Affairs
To ensure that Taiwan could maintain and develop a credible defense against China's building of man-made islands in the South China Sea to assert expansive territorial claims, the United States authorized a $1.83 billion arms sale package, including two frigates, anti-tank missiles, amphibious assault vehicles, and other equipment on December 16, 2015, drawing an angry response from China. Given the ability of China to scream across the narrow Taiwan Strait in minutes and take out the airfields, the package was aimed at survivability.The delay in the formal approval was due to the Obama administration's desire to maintain stable working relations with China.

Economy
Long-standing political tension with China saw Taiwan put restrictions on Chinese investments in its prized semiconductor sector, with an eye to protecting intellectual property and trade secrets.