The National Republic of China was created in 1949 by General Chiang Kai-shek, supported by the army of the Kuo-Min Tang (KMT) on the island of Taiwan (formerly known as “Formosa”) after the proclamation of the People’s Republic of China.
Until the end of the 1980s, Taiwan was governed by an authoritarian, one-party system (the Kuo-Min Tang). In 1987 pressure from the Democratic Progressive Party (DPP) led to the end of martial law and to the legalization of the opposition. In 1991 the restrictions prohibiting any contact with the People’s Republic of China were lifted and trade and investments were restarted in 2001.
Chinese citizens have increasing access to come as visitors to Taiwan. In the 2001 elections the Kuo-Min Tang lost its majority in Parliament for the first time in the country’s history. Relations with mainland China, which still considers Taiwan to be one of its own provinces, have improved since the KMT’s victory in the 2008 political elections and the election of its leader in 2008 and 2012; even the Democratic Progressive Party, traditionally hostile in their relations with China, have taken a more moderate stance under President Tsai, elected in 2016.
The Constitution is the same as the Chinese one of 1 January 1947, last amended in 2005. The President of the Republic, elected by direct suffrage for a four-year term may only be re-elected once, and he or she appoints the head of the government. The Legislative Assembly, (Li-faYuan) is made up of 113 members elected by direct suffrage for a four-year term. Until 2005 there was also a National Assembly (the Kuo-min Ta-hu) with 300 members, which dealt with constitutional matters. However, with the amendments of 7 June 2005 this assembly effectively dissolved itself, leaving all future constitutional questions to be decided by popular referendum.

Defence and justice.
The rulings of the International Court of Justice are accepted, with some reservations.

Economic situation.
An effective response to COVID-19 has limited the virus’ impact on Taiwan’s economy which, having shrunk slightly in the first half of 2020, is being rehabilitated by certain sectors, biotechnology and semiconductor manufacturing chief among them. Low salaries increase social disparity and add to discontent.

Primary sector.
A large part of arable farming involves rice; citrus fruits, pineapples, bananas and sweet potatoes are also widely grown. Livestock mainly involves poultry (ducks) and pigs.
Ocean fishing (tuna, Pacific saurus, cuttlefish), which is carried out with advanced technology, provides a steady supply of exports; aquaculture is also developed.

Secondary and tertiary sector.
After several decades of mining, nearly all the recoverable coal and metallic minerals had been depleted, while there are only small reserves of hydrocarbons (oil and natural gas fields in the western part of the island). Other products include marble, dolomite, limestone and silica sand.
The national electricity requirement is met mainly by coal- and gas-fired power plants, and by four reactors installed at the Kuosheng and Maanshan nuclear power plants (the construction of two more reactors at the Lungmen plant is currently suspended). There are also oil refineries (at Chiayi, Kaohsiung, Taoyuan and Yunlin), regasification plants and iron and steel works (at Kaohsiung and Taichung), chemical plants, cement works, rubber factories, and plants producing cellulose and paper. The car-making industry specializes in the assembly of cars from parts brought in from abroad. The electronics, IT and telecommunications industries are all growing, with main plants at the Science and Technology park at Hsinchu, to the south of Taipei, where several companies specialized in making electronic components and computers have set up and are increasingly in contact with mainland China.

Main exports (M US$ - 2017) 
electronic integrated circuits 92 424, electrical and electronic equipment 42 081, machinery 31 311, plastics 20 303, iron and steel 17 366, optical and precision instruments 16 416, chemicals 14 910, petroleum products 10 611, vehicles and parts thereof 9 734, telecommunications equipment 6 981, computers and accessories 5 339, refined copper 4 742, synthetic and artificial fibres and yarns 3 793, technical fabrics and coatings 3 707, tools and implements 2 806, toys and sports equipment 2 162,

Finance and banking.
The function of a central bank is held by the Central Bank of China. In Taipei there is a stock exchange.