Republic of China

The Republic of China (Traditional Chinese: ????; Simplified Chinese: ????; Wade-Giles: Chung¹-hua² Min²-kuo², Tongyong Pinyin: JhongHuá MínGuó, Hanyu Pinyin: Zh?nghuá Mínguó, Taiwanese POJ: Tiong-hoâ Bîn-kok) is a multiparty democratic state that today is composed of the island groups of Taiwan, the Pescadores, Quemoy, and Matsu. In English, as in Chinese, the name "Taiwan" is often used synonymously with the modern Republic of China, while the term "China" usually refers to the People's Republic of China (PRC), or mainland China with or without Hong Kong and Macau.

Economy

Economy of mainland China, 1912-1949

Main article: Economy of China (historical)

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During the first half of the 20th century the ROC economy was essentially capitalist, with much foreign interference. With the fall of the emperor and the end of political isolation also came the end of economic isolation. The weak national government led to little government control of the economy other than rampant inflation. China at the time was largely agrarian with most of the land, and thus the wealth, concentrated in a wide pyramid structure – much of the land was owned by a few very wealthy landowners with the general population tenant farmers who did not own land. This situation of severe inequality is exactly the one that both the original revolutionists that had formed Republican China and the Communist party had aimed to overturn.

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Economy of Taiwan

Main article: Economy of Taiwan

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Taiwan's economy prior to the 20th century was nearly completely agrarian. During its time as a Japanese colony from 1895-1945, it began to be industrialized, with the Japanese building much of the infrastructure that laid the foundation for its later rapid growth, such as the first railway connecting Taiwan's north and south.

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The modern Republic of China on Taiwan has a dynamic capitalist economy with gradually decreasing state involvement in investment and foreign trade. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Real growth in GDP has averaged about eight percent during the past three decades. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest.

Related Topics:
Privatized - GDP

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Agriculture constitutes only two percent of the GDP, down from 35 percent in 1952. Traditional labor-intensive industries are steadily being moved offshore and replaced with more capital- and technology-intensive industries. Taiwan has become a major investor in Mainland China, Thailand, Indonesia, the Philippines, Malaysia, and Vietnam; 50,000 Taiwanese businesses are established in Mainland China.

Related Topics:
Agriculture - 1952 - Mainland China - Thailand - Indonesia - Philippines - Malaysia - Vietnam

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Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little compared with many of its neighbors from the Asian financial crisis in 1998–1999. The global economic downturn, however, combined with poor policy coordination by the new administration and increasing bad debts in the banking system, pushed Taiwan into recession in 2001, the first whole year of negative growth since 1947. Due to the relocation of many manufacturing and labor intensive industries to mainland China, unemployment also reached a level not seen since the 1970s oil crisis. This became a major issue in the presidential election of 2004.

Related Topics:
1998 - 1999 - Recession - 2001 - 1947 - Unemployment - 1970s - Presidential election - 2004

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Because the PRC objects to having other countries maintain diplomatic or official relations with the ROC, the ROC often joins international organizations under a different name. The Republic of China is a member of governmental trade organizations such as the World Trade Organization and APEC under the name Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (?????????????????) and APEC under the name Chinese Taipei.

Related Topics:
World Trade Organization - APEC - Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu - Chinese Taipei

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See also: East Asian Tigers

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