4min chapter

Economics Explained cover image

Taiwan is More Than Microchips and Tensions With China

Economics Explained

CHAPTER

The History of Taiwan

Taiwan, officially the Republic of China, was formed more than 100 years ago on the Chinese mainland. The free market, democratic ideals of the new nation went head-to-head with the Chinese Communist Party and the country they wanted to make. Up until 1971, the US and its allies officially recognised theRepublic of China as the real China because their government wasn't Communist. Eventually, the People's Republic of China became too big to ignore and a vote was made to switch the two governments at the UN. Taiwan has been able to represent itself at the World Trade Organisation, APEC and even the Olympics by acting as Chinese Taipei. This allows countries to deal with them directly, but

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