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Taiwan: Ancient Culture to Modern Economy

Sylvia Rose

Updated: 10 hours ago

Taiwan is an island off the southeastern coast of China, with thousands of years of history marked by diverse cultures, agricultural advancements and complex political dynamics.




Geography


Covering about 36,000 km2, Taiwan has a diverse geography. The rugged Central Mountains run north to south. They divide the island into a densely populated west coastal plain and more sparsely populated eastern region.


The mountains, also called the Backbone of Taiwan or Roof of Taiwan, form by collision of the Philippine Sea Plate and Eurasian Plate. In the Yushan range is the tallest peak in NE Asia, Yu Shan (Jade Mountain) at 3,952 m.


The humid subtropical climate and monsoons support lush vegetation and fertile agricultural land. Average annual precipitation is about 2500 millimeters or 2.5 meters.


Hot summers average 30°C (86°F) and mild winters rarely drop below 10°C (50°F). Taiwan is rich in resources like coal, natural gas, limestone, marble, and asbestos. It nonetheless relies heavily on imports.




Early People


Before the arrival of settlers from mainland China, Taiwan is inhabited by indigenous Austronesian peoples, whose languages and cultures form a strong part of the island's heritage. Their presence dates back thousands of years.


Austronesian tribes include the Amis, Atayal, and Paiwan. They have diverse languages, traditions and rituals closely tied to their environment.


Archaeology shows proficiency in agriculture, pottery and navigation. Rice cultivation begins around 2000 BCE. Communities grow crops like millet, an ancient grain, and taro, a popular root vegetable.



millet
millet

As trade routes emerge, Taiwan becomes a hub for exchange among cultures. Indigenous tribes barter with traders from different regions.


Green and black tea have deep roots in the history of trade and agriculture. Although tea is once a primary export for Taiwan, focus today has moved to domestic production.


Han Chinese migration begins as early as the Song Dynasty (960-1279). It intensifies during the 17th century, especially during the Ming and Qing dynasties.



tea is the second most consumed beverage globally, after water
tea is the second most consumed beverage globally, after water

The influx of settlers triggers conflicts with the indigenous populations and defines the island's current ethnic composition. The Dutch briefly colonize Taiwan (1624-1662), followed by the Spanish, who establish a foothold in the north.


Koxinga, a Ming loyalist, expels the Dutch. He establishes a kingdom lasting until the Qing Dynasty annexes Taiwan in 1683.


Later, the Japanese rule from 1895 to 1945. They implement infrastructure projects, education reforms and industrial advancements. Development of the Taiwan Railway comes from this time.




Agriculture to Industry


Historically, Taiwan's economy is agricultural. After World War II, the island has a dramatic economic transformation. Through strategic government policies, investment in education, and export-oriented manufacturing, Taiwan evolves into one of the "Four Asian Tigers."


Rice is an important crop. Taiwan is among the top 15 rice producers worldwide. 1.25 million metric tons are harvested each year. Crops such as sweet potatoes and sugarcane add to the agricultural diversity.


Today it's a global electronics leader, especially in semiconductors, as well as petrochemicals and textiles. Exports include integrated circuits (ICs), computers and plastics. Imports include minerals, machinery and fuel.



Integrated circuit or microchip
Integrated circuit or microchip

Ongoing Disputes


Taiwan's history is marked by conflict both internal and external. The most significant is the ongoing dispute with the People's Republic of China (PRC), which views Taiwan as a renegade province.


The claim is rooted in the Chinese Civil War (1927-1949), which ended with the Nationalist government, the Kuomintang (KMT), retreating to Taiwan. From there they continue to claim sovereignty over all of China.


They establish a separate government system still existing today. This transition fuels ongoing tensions over Taiwan's sovereignty, with many still advocating for independence.



Taiwan street scene
Taiwan street scene

This unresolved status affects Taiwan's global interactions. While the island maintains unofficial relations with many countries through trade offices and cultural exchange, diplomatic recognition is limited due to PRC pressure.


Nonetheless, Taiwan is strong in global trade, particularly within the East Asian region.


Politics & Government


The Republic of China (ROC), the official name of Taiwan, operates under a multi-party democratic system. The President is the head of state and is directly elected by the people.


The current president is Lai Ching-te of the Democratic Progressive Party, preceded by Tsai Ing-wen from the same party. The Legislative Yuan serves as the unicameral parliament. The DPP champions Taiwanese identity and advocates for greater sovereignty.




Taiwan's democracy is a gradual process. From the martial law era under the Kuomintang (KMT) to the lifting of restrictions and the emergence of a strong opposition, Taiwan becomes a thriving democracy and civil society.


Taiwan functions under a vibrant democratic government, characterized by free and fair elections. It's politically divided between pro-independence and pro-unification viewpoints.


International relations are complex due to Taiwan's lack of formal recognition by many nations, primarily due to pressure from China. Nevertheless, Taiwan fosters strong economic ties.


Taiwan maintains diplomatic relationships with several countries. It emphasizes its active participation in international organizations, despite its limited recognition.



Taipei, Taiwanese capital
Taipei, Taiwanese capital

Problems of the 21st Century


  • Geopolitical risks: It has a complex relationship with the PRC and maintains its security in the face of increasing military pressure.

  • Environmental concerns include air pollution, water scarcity and the impact of climate change.

  • Economic competition: It maintains competitiveness in the global economy and adapts to new technological advancements. However recently the largest business, TMCS, pays $100 billion to the US in response to tariff and other threats.


Rapid industrialization affects air and water quality and contributes to public health risks. Taiwan is taking proactive measures toward sustainability.


The government promotes green energy initiatives and has set ambitious goals to reduce carbon emissions by 20% by 2030.



Taiwan - coast at night
Taiwan - coast at night

Urban Centers


Taipei is the capital and largest city of Taiwan, and its political, economic, and cultural center. Other major cities include New Taipei, Taichung, Kaohsiung, and Taoyuan.


Kaohsiung's busy harbor makes Kaohsiung the largest port city in Taiwan. Tainan City is renowned for its historical sites and street food.


Urban centers like Taipei blend modern architecture with traditional landmarks to create a harmony inspired by the island's diverse heritage. Taiwan has a population of 23.4 million, less than the city of Shanghai.



Kaohsiung waterfront pagoda
Kaohsiung waterfront pagoda

Economy


Taiwan has many natural resources, including coal and limestone, though it lacks extensive fossil fuel reserves. This gap has driven Taiwan to become a prominent player in the global semiconductor industry, with exports of over $120 billion annually.


Taiwan imports raw materials and energy, while major exports include electronics, machinery, and textiles. Taiwan is renowned for rapid economic growth, with an average GDP growth rate of around 5% in the last decade.


Taiwan's unemployment rate for 2024 is 3.38%, the lowest in 24 years. In January 2025, it dips further to 3.3%. Taiwan has a poverty rate of 1.3, which is low compared to many other countries like the US, with 11% poverty rate.


Facts About Taiwan


  • Taiwan's healthcare system is considered one of the best in the world.

  • Mandarin Chinese is the official language, but Taiwanese Hokkien is also widely spoken.

  • Taiwan is a popular tourist destination, attracting visitors with its natural beauty, culture and cuisine, such as kimchi and bubble tea. Taiwan has its own version of kimchi using sweet local cabbage.



Boba tea with black tapioca balls
Boba tea with black tapioca balls


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copyright Sylvia Rose 2024

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