Overview
Taiwan, an island nation off the coast of China, is often at the center of opposing interests of the United States. It serves as a successful template for a free democratic country in East Asia, thus gaining favorable Amiercan ties. However, China refuses to recognize Taiwan as an independent country. As a result, the United States’ important diplomatic relations and trade agreements with China frequently stall over positions on Taiwan.
Originally settled by immigrants from Austronesia and southern Asia, Taiwan was governed by the Dutch from 1624 through 1661, when the first wave of Chinese immigrants arrived from the mainland. In 1664, Ming loyalists occupied Taiwan and expelled the Dutch. But their efforts to re-establish the Ming Dynasty on the mainland failed. In 1680, the Qing Dynasty established Taiwan as a prefecture, and steady immigration swelled Taiwan’s population. In 1895, China ceded Taiwan to Japan, after the first Sino-Japanese War, and Japan ruled over the island nation for the next 50 years. Taiwan’s Japanese rulers developed the country’s economy and extended its culture, using Taiwan as a base of military operations during World War II, as well as a prime exporter of staples like rice and sugar.
At the end of the war, China entered a period of violent civil war between communists, led by Mao Zedong and nationalists, led by Chiang Kai-shek. When Mao Zedong convincingly defeated the nationalists, Chiang Kai-shek and two million Chinese refugees fled to Taiwan. Consequently, natives of the island surrendered to the influx of armed nationalists, thus bringing Taiwan under the rule of the Chinese Nationalist (KMT) administration. Chiang Kai-shek established a “provisional” Republic of China in Taipei shortly thereafter. During the 1950s, the KMT implemented land reforms, which gave rise to the nation’s first industrial capitalists. Taiwan’s economy subsequently transitioned from one of agriculture to one of industry, allowing Taiwan to grow into a major international trading power.
The United States maintained diplomatic relations with Taiwan until the 1970s, when Washington began to shift its focus toward greater cooperation with the PRC. In 1979, the US ended its recognition of Taiwan as “China” in favor of the government on the communist mainland.
Recent controversies include the US Defense Department’s sending of ballistic missile parts to Taiwan by mistake, a controversial arms deal between the US and Taiwan, a US born Caucasian running for a Taiwanese parliament seat, and accusations that “neocons” in the Bush administration risked nuclear war with China to preserve Taiwan’s status as an anti-communist bastion in the region.
Basic Information
Lay of the Land: Taiwan is an island nation off the coast of China. It occupies an area of 36,189 square miles. The capital, Taipei, has a population of 2.6 million, and is located near the island’s northern coast. Taiwan’s terrain is largely mountainous, and its climate is subtropical.
Population: 22.9 million
Religions: Chinese Universalist 80%, Buddhist 35%, Taoist 33%, Christian 6%, traditional Chinese religions (e.g. I kuan Tao, Tien Ti Chiao, Hsuan Yuan Chiao, Confucianism…) 5%, Muslim 0.8%, non-religious 4.2%. The excess over 100% is due to simultaneous, non-exclusive practice of multiple religions.
Ethnic Groups: Taiwanese (including Hakka) 84%, mainland Chinese 14%, indigenous 2%.
Languages
: Min Nan Chinese 65.8%, Mandarin Chinese (official) 18.6%, Hakka Chinese 10.4%, Amis 0.6%, Paiwan 0.3%. There are 22 living languages in Taiwan.
History
Taiwan was originally settled by immigrants from Austronesia and southern Asia nearly 15,000 years ago. Additional migration, from the Chinese mainland, began in 500 AD.
The Dutch were the first Europeans to make contact with the Taiwanese island, in 1624, and claimed it as a base for Dutch commerce with Japan and China. In 1626, the Spanish established a settlement on the northwest coast of Taiwan, occupying it until 1642, when they were driven out by the Dutch.
The Dutch continued to control Taiwan until 1661, when the first wave of Chinese immigrants came from the mainland, looking for relief from the political and economic chaos following the Manchu invasion and the end of the Ming Dynasty. In 1664, a fleet led by the Ming loyalist Cheng Ch’eng-kung occupied Taiwan. He was able to expel the Dutch and establish a base of operations while he worked to restore the Ming Dynasty in China. However, he died shortly after, and in 1683, his successors submitted to the Manchu, who had established the Qing Dynasty.
In 1680, the Qing Dynasty began to rule Taiwan as a prefecture. In 1875, it divided the island into two prefectures, north and south. In 1887, China made Taiwan a separate Chinese province.
During the 18th and 19th centuries, immigrants from Fujujan and Guangdong steadily increased Taiwan’s population. Chinese people supplanted indigenous people living on the island and became the island’s most dominant group. In 1895, China ceded Taiwan to Japan, having become weakened by the first Sino-Japanese War.
Taiwan was ruled by Japan for 50 years, from 1895-1945. During this time, Japan attempted to develop Taiwan’s economy. It also extended its culture onto the island’s inhabitants, making Japanese education compulsory and pressuring Taiwan’s residents to adopt Japanese names. Taiwan produced rice and sugar for export to Japan.
During World War II, Taiwan functioned as a base for Japanese colonial expansion in Southeast Asia, as well as a strategic base for the movement of troops and supplies. Taiwanese soldiers fought on the side of the Axis Powers, under the supervision of Japanese military personnel.
After Japan’s defeat, Taiwan reverted to Chinese rule. The Nationalist Chinese (KMT) administration on Taiwan was repressive and corrupt, leading to discontent among the locals. On February 28, 1947, violence directed against mainlanders flared, and rioting spread throughout the island. This was put down by Nationalist Chinese troops, who killed thousands of people. This only served to deepen the bitterness between the Taiwanese and Chinese.
Chiang Kai-shek’s KMT government fought a civil war with Mao Zedong’s Communist Party on the Chinese mainland until 1949, causing two million refugees to flee to Taiwan. In October 1949, the People’s Republic of China (PRC) was founded when Mao’s party triumphed.
Chiang Kai-shek established a “provisional” Republic of China (ROC) capital in Taipei in December 1949. During the 1950s, the KMT implemented a land reform program on Taiwan, distributing land among small farmers and compensating large landowners with commodities certificates and stock in state-owned industries. This left some large landowners impoverished, and others turned their compensation into capital and started commercial and industrial enterprises. These people became Taiwan’s first industrial capitalists, and together with refugee businessmen from the mainland, they managed Taiwan’s transition from an agricultural to a commercial industrial economy.
The UN seat representing all of China was held by the Nationalists for more than two decades before being lost in October 1971, when the PRC was admitted and Taiwan was forced to abdicate its seat to Beijing.
Chiang died at 87 of a heart attack on April 5, 1975. His son, Chiang Ching-kuo, began to liberalize Taiwan’s political system, which only accelerated when President Lee Teng-hui took office in 1988. In 1996, Lee Teng-hui was elected president, and this was followed by the election of opposition Democratic Progressive Party (DPP) candidate Chen Shui-bian in March 2000.
In 1998, Taiwan renewed its push for a separate UN seat—its sixth attempt in recent years. The move has been blocked each time by the Beijing government.
President Lee Teng-hui rankled mainland China by announcing in July 1999 that he was abandoning the long-standing “One China” policy that had kept the peace between the small island and its powerful neighbor, and that he would from then on deal with China on a “state-to-state basis.” China, which had vowed to someday unite Taiwan with the mainland, retaliated by conducting submarine warfare exercises and missile tests near the island in an effort to intimidate its tiny brazen neighbor, as it had once before in 1996.
Tension between China and Taiwan intensified in March 2005, when China passed an anti-secession law that said the country could use force if Taiwan moved toward achieving independence. President Chen called the bill a “law of aggression.” Hundreds of thousands of Taiwanese took to the streets to protest the bill.
Also in 2005, China met with several Taiwanese opposition leaders in an effort to undermine Chen. It was the first meeting between Nationalist and Communist Party leaders since 1949.
President Chen tested China in February 2006, when he announced that he was rescinding the National Unification Council, a group that was established in 1990 to deal with reunification issues with China. He stopped short of abolishing the council, saying, “Taiwan has no intention of changing the status quo.”
In June 2006, Taiwan’s legislature initiated proceedings to oust Chen because of allegations of corruption involving his family and senior administration officials, but the motion failed later that month. In November, prosecutors indicted Wu Shu-chen, the wife of President Chen, charging that she spent $450,000 in public funds on personal expenditures. Authorities also said that President Chen submitted fake receipts when drawing from the same fund and lied about how he spent the money.
In February 2009, Wu admitted to laundering $2.2 million and forging financial documents during her husband’s eight-year presidency. Wu said she had sent the money aboard, after receiving it from a contractor working on a government construction project, and that she had forged documents having to do with a presidential fund. She suggested that the money was a political donation, and did not admit to stealing it. Her husband, Chen, was arrested in 2008 on money laundering, bribery and embezzlement charges. He denied all of the allegations. Meanwhile, the couple’s son pled guilty to money laundering, as well as his wife and Wu’s brother.
Country Profile: Taiwan (Library of Congress)
History of Taiwan (Wikipedia)
Former First Lady of Taiwan Admits Laundering $2.2 Million
(Associated Press)
History of U.S. Relations with Taiwan
Chinese immigrants faced strong legal barriers to enter the United States after the Chinese Exclusion Act of 1882, which lasted through the end of World War II. As the national government fled to Taiwan, the US relaxed its restrictions for their allies in the recently concluded war.
The Immigration Act of 1965 opened things up further, and by 1982 Taiwan had a quota of 20,000 immigrants per year. Taiwanese immigrants settled in tightly knit communities, with their own clubs, churches, and newspapers, and often use Mandarin Chinese to advertise their stores or to communicate. The majority of Taiwanese have settled in California, specifically in Los Angeles, San Jose, and San Francisco. Texas and New York also host large communities.
On January 1, 1979, the United States changed its diplomatic recognition from Taipei to Beijing. Since then, the United States has recognized the government of the People’s Republic of China as the sole legal government of China. The US has also acknowledged the Chinese position that Taiwan is part of China.
Within this context, the US has maintained cultural, commercial, and other unofficial relations with the people on Taiwan.
On April 10, 1979, President Jimmy Carter signed into law the Taiwan Relations Act (TRA), which created domestic legal authority for the conduct of unofficial relations with Taiwan. US 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 US 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 12 other Taipei Economic and Cultural Offices (TECO) in the continental US and Guam.
The Taiwan Relations Act (TRA) continues to provide the legal basis for the unofficial relationship between the US and Taiwan, and underscores the US commitment to assisting Taiwan with its defensive needs.
Following de-recognition, the United States terminated its Mutual Defense Treaty with Taiwan. However, the United States has continued the sale of defensive military equipment to Taiwan in accordance with the Taiwan Relations Act, which provides for such sales and declares that peace and stability in the area are in the interests of the US.
(Wikipedia)
Current U.S. Relations with Taiwan
Famous Taiwanese-Americans
Business:
David Chu – He founded the clothing line, Nautica Clothing Company and later sold the company to VF Corporation (Wrangler, Jansport, The North Face, Vans). After retiring, he partnered with Jack Nicklaus to develop the Nicklaus brand to a worldwide market.
Jen-Hsun Huang – The Stanford alum founded the graphics processor company, Nvidia, and serves as its President and CEO. He pledged $30 million to Stanford University for the building of “Jen-Hsun Huang School of Engineering Center.”
Jerry Yang – Yang co-created Yahoo navigation directory and co-founded Yahoo! Inc., an internet directory, while at Stanford University in 1995. Yahoo has since expanded to provide a variety of online services worldwide and, in 2007, was the 2nd most visited site in the world. While Yang was CEO, Yahoo provided the IP addresses and other information of an anonymous Yahoo! Mail user to the Chinese authoritarian government, which subsequently led to the arrest and imprisonment of Chinese dissidents. Chinese dissidents sued Yahoo in U.S. courts under human rights laws. In 2007, Yahoo settled out of court and paid an undisclosed amount of compensation.
Entertainment:
Ang Lee – He broke into Hollywood with the highest grossing foreign film in the United States, Crouching Tiger Hidden Dragon, which was the first successful traditional Chinese martial arts film in the U.S. After directing Hulk, he won the Academy Award for Best Director in his film, Brokeback Mountain, which made him first ever Asian and non-white director to win the award.
Justin Lin – He directed The Fast and the Furious: Tokyo Drift and Fast and Furious, which grossed the highest amount on opening weekend among car-oriented movies.
Literature:
Eric Liu – He first helped President Clinton as a speechwriter and later served as his deputy domestic policy adviser. After the Clinton Administration, he helped found The True Patriot Network, a political action think tank.
Politics and Government:
Elaine Chao – As the first Asian-American woman to be appointed to a president’s cabinet, she served as the Secretary of Labor in the George W. Bush Administration from 2001-2009. She was the only cabinet member to serve the entire length of his administration. She faced controversy because a U.S. House Committee on Oversight and Government Reform alleged that Chao campaigned for Republican candidates at taxpayer expense.
Steven Chu – Famous for winning the Nobel Prize in Physics for cooling and trapping atoms with laser light in 1997, he now serves as the U.S. Secretary of Energy. He is the first person appointed to the Cabinet after having won a Nobel Prize. He advocates for research into alternative energy and nuclear energy, while moving away from fossil fuels.
Science & Education:
David Ho – As the 1996 Time Person of the Year, he designed anti-retroviral therapy which helped patients control their HIV replication count. As a result of HIV technology he helped invent, AIDS mortality has declined six times in developed countries since 1996.
Henry T. Yang – Beginning as a doctor of aerospace studies, he now has ascended to become Chancellor of University of California, Santa Barbara. Additionally, he serves on the scientific advisory board for the Department of Defense, U.S. Air Force, U.S. Navy, NASA, and the National Academy of Engineering.
Wen Ho Lee – He worked for the University of California as a nuclear physicist, however he faced a federal grand jury indictment of espionage and stealing secrets of the U.S. nuclear arsenal and selling them to China. After an independent government investigation, the court dropped 58 of 59 of the original charges, leaving only a minor charge. As a result of the inappropriate manner in which the police revealed his name, he received a $1.6 million settlement but faced a tarnished image.
Relations between Taiwan and the US are peaceful and cooperative, as defined in the Three Communiqués and the Taiwan Relations Act (TRA).
The United States does not support Taiwanese independence, and has instead supported a policy of peaceful resolution with China. On December 9, 2003, President George W. Bush stated that the United States was opposed to any attempt by either side to unilaterally alter the status quo in the Taiwan Strait. The US has also encouraged communication between Beijing and Taipei, including direct discussions among elected leaders.
Since 1979, US commercial ties have been maintained. Taiwan continues to enjoy Export-Import Bank financing, Overseas Private Investment Corporation guarantees, normal trade relations (NTR) status, and ready access to US markets. Most recently, AIT attempted to expand the market for American goods and services in Taiwan, and has been engaged in trade discussions focusing on the protection of intellectual property rights.
Maintaining diplomatic relations with the PRC has been recognized to be in the long-term interest of the United States by seven consecutive administrations. However, maintaining strong, unofficial relations with Taiwan is also a major US goal to foster peace and stability in the region. While the US does not support Taiwan independence, it does support the island’s membership in international organizations, such as the World Trade Organization, Asia-Pacific Economic Cooperation (APEC) forum, and the Asian Development Bank, where statehood is not a requirement for membership.
In the 2000 US census, 118,048 people identified themselves as being of Taiwanese (a category distinct from Chinese) origin.
In 2006, 362,932 Americans visited Taiwan. Except for a massive drop-off in 2003 (249,477 tourists), the number of Americans traveling to Taiwan has grown gradually since 2002 (326,696 tourists).
In 2006, 300,382 Taiwanese traveled to the US The number of tourists has fluctuated between a low of a 238,999 (2003) and a high of 318,886 (2005) since 2002.
US-Taiwan Relations: What’s the Problem? (by Richard C. Bush III, Brookings Institution)
US-Taiwan Defense Relations in the Bush Administration (by Peter Brookes, Heritage Foundation)
US-Taiwan-China Relationship Back in Balance
(by Peter Enav, Associated Press)
Where Does the Money Flow
The lack of formal diplomatic relations with Taiwan has done nothing to diminish trade with the United States. From 2004 to 2008, US imports from Taiwan steadily grew, from $34.6 billion to $36.3 billion. Leading the way were semiconductors, moving up from $3.7 billion to $4.5 billion; telecommunications equipment, rising from $1.4 billion to $2.8 billion; clocks, portable typewriters, and other household goods, increasing from $1.1 billion to $2.5 billion; iron and steel, rising from $1.3 billion to $1.6 billion; and steel mill products (semi-finished), increasing from $625.7 million to $818.4 million;
During the same period, US imports from Taiwan on the decline included computer accessories, moving down from $4.7 billion to $2.4 billion and.electrical equipment, decreasing from $1.5 billion to $1.4 billion; and
American exports to Taiwan also have increased this decade, from $21.6 billion in 2004 to $24.9 billion in 2008. Top exports included semiconductors, moving up from $3.7 billion to $5.1 billion; industrial machines, rising from $2.5 billion to $2.6 billion; and organic chemicals, increasing from $1.1 billion to $1.2 billion;
US exports on the decline included civilian aircraft, increasing from $1.16 billion to $1.07 billion; plastic materials, falling from $584.5 million to $542.3 million; petroleum products, moving down from $668.1 million to $310.3 million; and metalworking machine tools, down from $735.1 million to $116.4 million.
In 2007, the US sold $643.8 million in defense articles and services to Taiwan.
For FY 2010, the US pledged $575,000 in aid to Taiwan in 2010, all of which was dedicated to Combating Weapons of Mass Destruction (WMD).
The 2010 budget request will bring aid back to 2007 levels, at $575,000. In both the 2009 and 2010 budgets, all funds are dedicated to Counter-Terrorism. According to the Department of State, “These funds will develop and support licensing processes so that technical experts, intelligence agencies and foreign policy officials are able to evaluate license applications with proliferation implications and deny such applications when warranted; provide enforcement agencies (such as Taiwan Customs) with training and resources necessary to build their capacity to detect, identify, and interdict unlicensed shipments as well as to prosecute violators; and continue to expand an outreach program to make industry aware of export controls and consequences of violating them.”
Trade in Goods (Imports, Exports and Trade Balance) with Taiwan (US Census Bureau)
Prospects for a US-Taiwan Free Trade Agreement (by Merritt T. (‘Terry’) Cooke, Foreign Policy Research Institute)
Free Trade with Taiwan Is Long Overdue
(by John J. Tkacik, Jr. and Daniella Markheim, Heritage Foundation)
Controversies
Missile Deal Brings Controversy with China
In October 2008, the United States sold $6.4 billion in arms to Taiwan, including Apache attack helicopters, in a move that angered China. The US cited the Taiwan Relations Act as a reason for the deal, but China—which views Taiwan as a renegade nation—spoke out against the deal. The US has said that it will defend Taiwan if China ever attacks the island, adding to the controversy. In the wake of the deal, China cancelled several military exchanges with the US.
US to Sell $6.4 Billion in Weapons to Taiwan (by Zain Verjee, CNN)
US Accidentally Ships Missile Parts to Taiwan
In March 2008, the US Defense Department admitted that it had accidentally shipped ballistic missile components to Taiwan. Four nose-cone fuses for the missiles were sent instead of the helicopter batteries Taiwan had requested. They were sent in 2006, and stored in a warehouse there, until Taiwanese officials let the US know about the mistake in 2008. The Pentagon was quick to point out that there were no nuclear or fissile materials sent with these items. But critics pointed out that relations with China, which views Taiwan as a renegade island, may suffer as a result of the mistake.
US Born Caucasian to Run for Taiwan’s Parliament
In February 2008, Robin Winkler, a Taipei-based lawyer, environmental activist and Taiwan citizen since 2003, announced he would run against the Nationalist candidate for a seat in Taiwan’s parliament. The controversy arose because of his race, which is Caucasian. Winkler became the first Caucasian to run for parliament, and experts predicted that there would be personal attacks, even though Winkler renounced his US citizenship to become a Taiwanese citizen in 2003. His platform included more resources for a “sustainable economy” and greater access to government records.
Neocons Risked Nuclear War with China
In June 2007, Congressional Quarterly reported that a top aide to former Secretary of State Colin Powell said that “neocons” in George W. Bush’s administration had quietly encouraged Taiwanese politicians to move toward a declaration of independence from mainland China. This raised controversy because China has said such an action would provoke a military strike. When the news broke, it was hotly disputed by former defense officials.
Wilkerson: Defense Officials Tried to Reverse China Policy (by Jeff Stein, Congressional Quarterly)
Human Rights
Human rights advocates have complained that Taiwanese law fails to provide adequate protection for people accused of crimes, as suspects are not entitled to legal representation during questioning. Legal counsel is allowed, but not required, to be present at police interrogations.
According to the State Department, “Internet content rating regulations require all Taiwan website operators to voluntarily label their website material, making it easier for software filters to detect and block access to adult-only material for children under age 18. Several nongovernmental organizations (NGOs) reported that law enforcement officials monitored Internet chat rooms and bulletin boards and used Internet addresses to identify and prosecute adults responsible for posting sexually suggestive messages.”
Taiwanese law prohibits teachings, writings, or research that promotes communism or communist organizations, which threaten public order, good morals, regulations, or laws.
On December 12, 2008, Taipei District Court indicted former President Chen Shui-bian for alleged acts of corruption. Chen and his wife, Wu Shu-jen, faced major corruption and money laundering charges. They were both convicted of their crimes and sentenced to life in prison and must pay millions of dollars in fines.
During the year several prominent figures from both the ruling and opposition parties were indicted for the alleged misuse of special discretionary funds made available to them as office-holders. Many observers remarked that the law regarding the use of these funds was unclear and was in need of reform.
Women’s rights in Taiwan still fall short of activists’ goals. The Department of State reported that “Violence against women, including rape and domestic violence remained a serious problem. Prostitution, including child prostitution, was a problem. Trafficking in women remained a problem. The authorities continued to report the arrest of a significant number of prostitutes from Southeast Asian countries, mainly Vietnam, Indonesia, and Cambodia.”
Women’s advocates also claimed that women were still promoted less frequently, occupied fewer management positions, and worked for lower pay than their male counterparts. According to the State Department, “Salaries for women averaged 85% of those for men performing comparable jobs.”
The Department of State reported that “Child abuse continued to be a widespread and growing problem. More than 900 cases were reported in 2007, including cases of physical, mental, or sexual abuse or harm due to guardian neglect, marking a projected increase of 33% over 2006.”
Societal discrimination against homosexuals and persons with HIV and AIDS was a problem.
Homosexual rights activists and free speech advocates alleged that the police prejudicially applied obscenity laws to discourage the sale of gay pornography. Homosexual rights groups also complained that law enforcement agencies monitored Internet chat rooms and bulletin boards for sexually suggestive messages and prosecuted adult message-posters in violation of constitutional free speech guarantees.
A number of laws and regulations limited the right of association. While labor unions may draw up their own rules and constitutions, they must submit them to county and city authorities as well as the national government. Labor unions may be rejected or dissolved if they do not meet government certification requirements or if their activities disturb public order.
Taiwan's Embassy Web Site in the U.S.
Taiwan does not maintain an embassy in the US. The Taipei Economic and Cultural Representative Office (TECRO) unofficially manages commercial and cultural relations with the US.
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